BILL SUMMARY for HB09-1085
SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY
|Votes: View--> ||Action Taken: |
|Moved prepared Amendment L.005 (Attachment A). Th|
Moved prepared Amendment L.006 (Attachment B). Th
Moved to refer House Bill 09-1085, as amended, to
|Pass Without Objection|
Pass Without Objection
01:42 PM -- House Bill 09-1085
Senator Heath presented House Bill 09-1085. The bill modifies and renames the Mortgage Broker Licensing Act. Mortgage brokers offer or negotiate the terms of a residential home loan. They are regulated by the Division of Real Estate within the Department of Regulatory Agencies (DORA). The bill defines the term "mortgage loan originator" and replaces the term "mortgage broker" in the text and title of the law. On or after July 31, 2010, mortgage loan originators must be registered with the Nationwide Mortgage Licensing System and Registry, a national tracking system established by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act). Registry in the national system is a condition of receiving a license from the department. Nationally registered loan originators will obtain a unique identifying number that must appear on all marketing materials and loan documents. In addition, the bill:
- requires annual renewal of licenses, a change from the current three-year renewal cycle;
- increases education requirements for license renewal from nine hours every three years to eight hours annually;
- requires license applicants to provide additional information to the department including personal credit reports and evidence of financial responsibility;
- authorizes the department to obtain additional criminal background information;
- allows the department to order that a mortgage loan originator pay for damages to consumers; and
- includes a FY 2009-10 cash funds appropriation of $90,636 and 1.0 FTE from the Mortgage Loan Originator Licensing Cash Fund to the Department of Regulatory Agencies.
The bill is repealed on July 1, 2011, following a sunset review.
Senator Heath distributed prepared Amendment L.005 (Attachment A) and prepared Amendment L.006 (Attachment B). He explained the bill and the amendments and discussed the SAFE Act.
The following individuals testified regarding the bill:
01:46 PM -- Cary Whitaker, the Mortgage Broker Program Manager for the Division of Real Estate within DORA, testified in favor of the bill on behalf of DORA. He discussed the SAFE Act.
01:47 PM -- Terry Jones, representing the Colorado Mortgage Lenders Association (CMLA), testified in favor of the bill. He described the CMLA and discussed the amendments. Mr. Jones responded to questions from Senator Mitchell concerning the mortgage market.
01:54 PM -- Peter Minahan, representing the Colorado Financial Services Association, testified in favor of the bill. He discussed the SAFE Act.
|TIME: || 01:56:45 PM|
|MOTION:||Moved to refer House Bill 09-1085, as amended, to the Committee on Appropriations. The motion passed on a 7-0 roll call vote. |
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS