Two Nebraska Bills Amend Mortgage Requirements

As of March 7th, some new amendments to lender licensing rules were enacted thanks to two bills that were passed in Nebraska. They are intended to clarify the requirements for installment loan brokers, payday lenders, mortgage bankers, and mortgage loan originators. The first one is called the LB 279, (short for Legislative Bill.) It makes non-substantive clarifications to how a "loan broker" is defined. It also narrows down the exemption for accountants to certified public accountants only. Additionally, this bill gives the Nebraska Department of Banking and Finance authorization to share examination reports and other confidential information with the Consumer Financial Protection Bureau and any other relevant state regulators.

The second bill is known as LB 290 and it was designed to remove many of the mortgage licensing requirements that were previously applicable to individuals. It also identifies the duties of mortgage loan originators, including providing notification to the department within 10 days of events such as bankruptcy, criminal indictments, and suspension proceedings.  They must also notify the department within 30 days of other changes, such as changing employer and address. This bill also allows firms to submit reports electronically. It also states that the 120-day period for calculating abandonment of a license application must begin from the date that the department sends the applicant an electronic notice of deficient items.

Both of these bills are set to take effect three months after the end of Nebraska's legislative session, which falls on May 30, 2013.

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