Recent Changes to State Banking and Consumer Finance Laws

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By Kyle Correa-Brady

July 25 — The following is a summary of recently effective state banking and consumer finance legislation affecting issues covered in our State Law Chart Builders, which are available on Bloomberg Law: Banking.

Georgia: Effective July 10, 2016, an amendment to Georgia’s regulations regarding mortgage licensees changed the various fees applicable to mortgage brokers, lenders, and originators.

Hawaii: Senate Bill 2680, effective June 30, 2016, changed statutory numbering and the fees required for certain banking applications and actions.

Senate Bill 2850, effective July 1, 2016, enacted amendments to Hawaii’s mortgage laws. Provisions applicable to “mortgage servicer companies” have been deleted. The fee amount required for a mortgage servicer for a change of control has been changed as well.

Michigan: Senate Bill 656, effective September 7, 2016, amends the definition of “collection agency” by making several grammatical changes. The amendment also defines certain activities that are not considered “collecting or attempting to collect a claim” and excludes indirect activities from the definition of “collection agency.”

New Hampshire: House Bill 1685, effective August 20, 2016, repeals the chapter specific to mortgage servicers, and now includes mortgage servicers within the provisions applicable to mortgage brokers and originators.

North Carolina: House Bill 289 repeals and replaced North Carolina’s Money Transmitter Act. The new money transmitter act changes the fee, surety bond, and net worth requirements for new applicants. The new act also applies more explicitly to online activities and virtual currency. The law was signed on June 30, 2016, but was dated retroactively to October 1, 2015. The North Carolina legislature has indicated that certain provisions may not be implemented until October 1, 2016.

Ohio: House Bill 303, sets up the D.O.L.L.A.R. deed program, which includes provisions allowing for “deed in lieu of foreclosure” in mortgage transactions. The law was signed on June 28th, 2016, and takes effect after 90 days.

To contact the reporter on this story: Kyle Correa-Brady in Washington at kcorrea-brady@bna.com

To contact the editor responsible for this story: Seth Stern at sstern@bna.com

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