Text: HF02499 Text: HF02501 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 535B.1, subsection 3, Code 2001, is 1 2 amended to read as follows: 1 3 3. "Licensee" means a person licensed under this chapter;1 4however, any individual who is acting solely as an employee or1 5agent of a mortgage banker or broker licensed under this Act1 6need not be separately licensed. 1 7 Sec. 2. Section 535B.1, subsection 4, Code 2001, is 1 8 amended to read as follows: 1 9 4. "Mortgage banker" means a person, including a natural 1 10 person serving in the capacity of employee, agent, or 1 11 independent contractor of a person, who does one or more of 1 12 the following, whether such activities are conducted from a 1 13 location within or outside this state: 1 14 a.MakesOriginates at least four first mortgage loans on 1 15 residential real property located in this state in a calendar 1 16 year, with the expectation of compensation or gain that is 1 17 determined according to the amount borrowed or the terms and 1 18 conditions agreed to by the mortgage loan borrower. Such a 1 19 person's primary job responsibilities include negotiating with 1 20 a borrower or potential borrower for the purpose of 1 21 establishing the terms and conditions of the mortgage loan, 1 22 including loans originated and sold in the secondary market. 1 23b. Originates at least four first mortgage loans on1 24residential real property located in this state in a calendar1 25year and sells four or more such loans in the secondary1 26market.1 27c.b. Services at least four first mortgage loans on 1 28 residential real property located in this state. However, a 1 29 natural person, who services less than fifteen first mortgage 1 30 loans on residential real estate within the state and who does 1 31 not sell or transfer first mortgage loans, is exempt from this 1 32 paragraph if that person is otherwise exempt from the 1 33 provisions of this chapter. 1 34 Sec. 3. Section 535B.1, subsection 5, Code 2001, is 1 35 amended to read as follows: 2 1 5. "Mortgage broker" means a person, including a natural 2 2 person serving in the capacity of employee, agent, or 2 3 independent contractor of a person, who arranges or 2 4 negotiates, for compensation, or in the expectation of 2 5 compensation, or attempts to arrange or negotiate, at least 2 6 four first mortgage loans or commitments for four or more such 2 7 loans on residential real property located in this state in a 2 8 calendar year, whether such activities are conducted from a 2 9 location within or outside of this state. 2 10 Sec. 4. Section 535B.2, unnumbered paragraph 1, Code 2001, 2 11 is amended to read as follows: 2 12 This chapter, except for sections 535B.3, 535B.11, 535B.12, 2 13 and 535B.13, does not apply to any of the following or to an 2 14 employee of any of the following: 2 15 Sec. 5. Section 535B.2, subsections 9 and 12, Code 2001, 2 16 are amended by striking the subsections. 2 17 Sec. 6. Section 535B.2, Code 2001, is amended by adding 2 18 the following new subsections: 2 19 NEW SUBSECTION. 14. A person who, as a seller of real 2 20 property located in this state, receives one or more mortgages 2 21 or deeds of trust as security for a separate monetary 2 22 obligation. 2 23 NEW SUBSECTION. 15. An agency of any state or of the 2 24 United States. 2 25 NEW SUBSECTION. 16. A person who receives a mortgage or 2 26 deed of trust on real estate as security for an obligation 2 27 payable on an installment or deferred payment basis and 2 28 arising by reason of materials furnished or services rendered 2 29 in the improvement of the real estate, or any lien created 2 30 without the consent of the owner of the real estate. 2 31 NEW SUBSECTION. 17. A person, including a natural person 2 32 serving in the capacity as an employee, agent, or independent 2 33 contractor of a mortgage banker or mortgage broker, whose 2 34 responsibilities are clerical or administrative functions, 2 35 including but not limited to gathering information, requesting 3 1 information, word processing, soliciting general interest in 3 2 mortgage loans, sending correspondence, and assembling files. 3 3 NEW SUBSECTION. 18. Any other person designated by rule 3 4 or order of the administrator. 3 5 Sec. 7. Section 535B.3, subsection 1, Code 2001, is 3 6 amended to read as follows: 3 7 1. A person exempt under section 535B.2, subsection 10, 3 8 11,12,or 13, but not including any employee of such person, 3 9 shall register with the administrator. 3 10 Sec. 8. Section 535B.4, Code 2001, is amended to read as 3 11 follows: 3 12 535B.4 GENERAL LICENSING REQUIREMENTS. 3 13 1. A person shall not act as a mortgage banker or mortgage 3 14 broker in this state or use the title "mortgage banker" or 3 15 "mortgage broker" without first obtaining a license from the 3 16 administrator. 3 17 2. License applicants shall submit to the administrator an 3 18 application on forms provided by the administrator. The forms 3 19 shall include, at a minimum, all addresses at which business 3 20 is to be conducted, the name of each natural person or the 3 21 names and titles of each director and principal officers of 3 22 the business, and a description of the activities of the 3 23 applicant in such detail as the administrator may require. 3 24 3. For all applicants, other than natural persons serving 3 25 in the capacity of employee, agent, or contractor, and meeting 3 26 the definition of mortgage banker and mortgage broker in 3 27 section 535B.1, subsections 4 and 5, the following apply: 3 283.a. The applicant shallalsosubmit a recently prepared 3 29 certified financial statement. 3 304.b. The applicant for an initial license shall submit a 3 31 fee in the amount of five hundred dollars. 3 325.c. Licenses granted under this chapter are not 3 33 assignable. 3 346.d. Licenses granted under this chapter expire on the 3 35 next June 30 after their issuance. 4 17.e. Applications for renewals of licenses under this 4 2 chapter must be filed with the administrator before June 1 of 4 3 the year of expiration and must be accompanied by a fee of two 4 4 hundred dollars for a license to transact business solely as a 4 5 mortgage broker, and four hundred dollars for a license to 4 6 transact business as a mortgage banker. 4 7 4. Rules regarding applications for licenses and renewals 4 8 of licenses for applicants, including natural persons serving 4 9 in the capacity of employee, agent, or contractor, meeting the 4 10 definition of mortgage banker and mortgage broker in section 4 11 535B.1, subsections 4 and 5, shall be determined by the 4 12 administrator. 4 13 Sec. 9. Section 535B.6, Code 2001, is amended to read as 4 14 follows: 4 15 535B.6 LICENSING OF FOREIGNCORPORATIONENTITY. 4 16 An applicant that is a foreign corporation or other entity 4 17 that may qualify to conduct business in this state must be 4 18 authorized to do business in this state. A foreign 4 19 corporation or other such entity shall file with the license 4 20 application both of the following: 4 21 1. An irrevocable consent, duly acknowledged, that suits 4 22 and actions may be commenced against that licensee in the 4 23 courts of this state by service of process in the usual manner 4 24 provided for by the statutes and court rules of this state. 4 25 2. Proof of authorization to do business in this state. 4 26 Sec. 10. Section 535B.7, subsection 2, unnumbered 4 27 paragraph 1, Code 2001, is amended to read as follows: 4 28 The administrator may order an emergency suspension of a 4 29 licensee's license pursuant to section 17A.18A. A written 4 30 order containing the facts or conduct which warrants the 4 31 emergency action shall be timely sent to the licensee by 4 32 restricted certified mail, as defined in section 618.15. Upon 4 33 issuance of the suspension order, the licensee must also be 4 34 notified of the right to an evidentiary hearing. A suspension 4 35 proceeding shall be promptly instituted and determined. 5 1 Sec. 11. Section 535B.10, subsection 1, Code 2001, is 5 2 amended to read as follows: 5 3 1. Within one hundred twenty days after the end of a 5 4 licensee's fiscal year, the licensee, other than natural 5 5 persons serving in the capacity of employee, agent, or 5 6 contractor and meeting the definition of mortgage banker and 5 7 mortgage broker in section 535B.1, subsections 4 and 5, shall 5 8 file financial statementswhichthat are certified by an 5 9 independent accounting firm except that financial statements 5 10 filed by a licensee who is a natural person shall be certified 5 11 by the licensee. 5 12 Sec. 12. Section 535B.11, unnumbered paragraph 1, Code 5 13 2001, is amended to read as follows: 5 14 A licensee or other mortgageewhoor other person that 5 15 services mortgages on residential real estate located in this 5 16 state shall do all of the following: 5 17 Sec. 13. Section 535B.12, Code 2001, is amended to read as 5 18 follows: 5 19 535B.12 PAYMENT PROCESSING. 5 20 A licensee or other mortgagee or other person that services 5 21 mortgages on residential real estate located in this state 5 22 shall not assess a late charge if full payment is received 5 23 before the date late charges are authorized in the mortgage 5 24 documents and shall post all periodic payments in full within 5 25 two business days of receipt. 5 26 Sec. 14. NEW SECTION. 535B.17 MORTGAGE BANKERS AND 5 27 BROKERS BOARD. 5 28 1. A state mortgage bankers and brokers board is 5 29 established and shall be composed of the administrator, who 5 30 shall be an ex officio nonvoting member and chairperson, and 5 31 five other members, appointed by the governor, who shall be 5 32 chosen from various regions of the state. No more than three 5 33 members of the board shall be mortgage bankers or mortgage 5 34 brokers. In case of a vacancy in the board, other than one 5 35 resulting from a vacancy in the office of the administrator, 6 1 the governor shall appoint a new member to fill such vacancy 6 2 for the unexpired term. 6 3 2. The regular term of office of each member, other than 6 4 the administrator, shall be contemporaneous with the regular 6 5 term of office of the administrator as defined in section 6 6 524.201, subsection 2, and each member shall hold office for 6 7 such term and until the member's successor shall have been 6 8 appointed by the governor. 6 9 3. A member of the state mortgage bankers and brokers 6 10 board, other than the administrator, shall not receive a 6 11 salary but is entitled to reimbursement for actual expenses 6 12 incurred by the member in connection with the member's duties. 6 13 Each member of the board may also be eligible to receive 6 14 compensation as provided in section 7E.6. 6 15 4. The state mortgage bankers and brokers board shall act 6 16 with the administrator in an advisory capacity concerning all 6 17 matters pertaining to the conduct of the administration of the 6 18 provisions of this chapter and shall perform such other duties 6 19 as are specifically provided for by the laws of this state. 6 20 5. The state mortgage bankers and brokers board shall meet 6 21 at least six times in each calendar year, on such dates and at 6 22 such places at the board may designate, and shall meet at such 6 23 other times as the board may deem necessary, or when called by 6 24 the chairperson of the board, or any two members of the board. 6 25 Sec. 15. EFFECTIVE DATE. This Act takes effect January 1, 6 26 2003. 6 27 EXPLANATION 6 28 This bill makes amendments to Code chapter 535B, regarding 6 29 mortgage bankers and brokers. 6 30 The bill amends the definitions of "licensee", "mortgage 6 31 banker", and "mortgage broker". 6 32 The bill deletes exemptions under Code section 535B.2 for 6 33 insurance companies and certain mortgage lenders, and adds 6 34 exemptions for state and federal agencies, persons selling 6 35 real property and holding mortgages as security for a separate 7 1 monetary obligation, mortgages held to secure mechanic's 7 2 liens, clerical or administrative employees of mortgage 7 3 bankers or brokers, and persons designated by rule or order of 7 4 the superintendent of banking. A related change is made to 7 5 Code section 535B.3 to reflect the deletion of an exemption. 7 6 The bill amends Code section 535B.3 to specify that 7 7 employees of exempt persons need not register with the 7 8 superintendent of banking. 7 9 The bill amends Code section 535B.4 to require the names of 7 10 natural persons on the forms, and to provide for rules on 7 11 licenses and renewals. The bill also reorganizes the section. 7 12 The bill amends Code section 535B.6 to provide that foreign 7 13 entities other than foreign corporations may be licensed. 7 14 The bill amends Code section 535B.7 to refer to the 7 15 definition of "restricted certified mail" in Code section 7 16 618.15, which means any form of certified mail which carries 7 17 on the face, in a conspicuous place the endorsement, "Deliver 7 18 to addressee only", and for which the post office provides the 7 19 mailer with a return receipt showing the date of delivery, the 7 20 place of delivery, and person to whom delivered. 7 21 The bill amends Code section 535B.10 to provide that 7 22 financial statements filed by licensees who are natural 7 23 persons shall be certified by the licensee. 7 24 The bill amends Code sections 535B.11 and 535B.12 to 7 25 regulate other persons who service mortgages. 7 26 The bill adds new Code section 535B.17, which creates a new 7 27 mortgage bankers and brokers board, composed of the 7 28 superintendent of banking and five other members appointed by 7 29 the governor, who meet at least six times per year, to advise 7 30 on matters pertaining to Code chapter 535B. 7 31 The bill takes effect January 1, 2003. 7 32 LSB 6858HV 79 7 33 jj/pj/5
Text: HF02499 Text: HF02501 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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