BILL TO LICENSE MORTGAGE ORIGINATORS BECOMES LAW

FOR IMMEDIATE RELEASE                                                              Monday, July 7, 2008

Contact: Senator Lou D’Allesandro

(603) 271-2600

BILL TO LICENSE MORTGAGE ORIGINATORS BECOMES LAW

CONCORD – Senators celebrated today as the governor signed into law a new requirement intended to protect home buyers from unscrupulous mortgage originators.

House Bill 1286 will require anyone who arranges mortgage loans to fill out an application and get a license from the state starting in April of 2009. The legislation follows on the heels of a law enacted last year to protect homeowners from foreclosure rescue scams.

Senator Lou D’Allesandro (D-Manchester), a co-sponsor of House Bill 1286, said this step is needed to protect consumers from questionable lending practices and unscrupulous mortgage deals that have contributed to the state’s current foreclosure crisis.

“This is one step we can take to help protect families as they make the major investment of buying a home. Licensing requirements will help ensure that mortgage originators follow national standards and recognize their obligation and responsibility to consumers,” D’Allesandro said.

The law will require mortgage originators to pay $100 per year and fill out an application that asks, among other things, about any past criminal charges or employment terminations. The state Banking Department would issue the licenses and have the power to deny or revoke licenses under certain circumstances. Mortgage originators also would have to be in the employ of a licensed mortgage banker or broker.

State Banking Commissioner Peter Hildreth noted that a growing number of states are requiring loan originators to be licensed and plans for a national database are moving forward. If all goes as planned, New Hampshire’s licensing requirement will be launched at the same time as the national database comes online. This will allow state banking officials to track loan originators who are acting in bad faith across state lines, Hildreth said.