HB 139 -- Residential Mortgage Brokers

Sponsor:  Portwood

This bill changes the laws regarding residential mortgage
brokers.  The bill:

(1)  Defines "continuing education" and establishes standards to
comply with the continuing education requirements;

(2)  Adds to the definition of "exempt entity" any authorized
licensed insurance agent, broker, or producer in any state and
any loan originator under exclusive contract with a licensee who
has a net worth on file with the Director of the Division of
Finance in the Department of Economic Development that exceeds
$25 million who only offers loan products of affiliated lenders
wholly owned by the same publicly traded company as the licensee;

(3)  Adds any mortgage banker as specified in the bill to the
definition of "exempt entity" for the purpose of mortgage broker
licensure;

(4)  Removes from the definition of "exempt entity" any person
employed or contracted by a licensee who assists in brokerage
activities;

(5)  Defines "loan originator" and "residential loan originator
license certification course";

(6)  Exempts certain financial institutions from the loan
originator licensing requirements;

(7)  Exempts from the licensing requirements those persons
holding mortgage broker or loan originator licenses prior to the
effective date of the bill;

(8)  Requires the director to consider advice from the
Residential Mortgage Board on the promulgation of any rule and on
the decision to deny or revoke a license.  The director will
provide relevant documents to the board;

(9)  Requires all license applications to include evidence of the
satisfactory completion of the residential loan originator
license certification course and examination;

(10)  Requires loan originator licensees to deliver their
licenses to their current employer and notify the director.  In
the case where employment is terminated, the licensee will return
his or her license to the director with a written explanation of
the reasons for termination; and

(11)  Requires all license renewal applications to include
evidence of the completion of all continuing education
requirements.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:18 pm