15may03... 1500h

06/24/03 2079cofc

2003 SESSION

03-0814

06/10

SENATE BILL 121-FN

AN ACT relative to mortgage originators.

COMMITTEE: Banks

AMENDED ANALYSIS

This bill defines the term "originator" for both first and second mortgage brokers and requires the mortgage broker to include a list of his or her originators with an application for a license and in the annual report.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15may03... 1500h

06/24/03 2079cofc

03-0814

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to mortgage originators.

Be it Enacted by the Senate and House of Representatives in General Court convened:

304:1 Definitions; "Originator". RSA 397-A:1, IX is repealed and reenacted to read as follows:

IX. "Originator" means an individual who is employed or retained and supervised by a mortgage banker or broker required to be licensed under RSA 397-A, and who, for compensation or gain or in the expectation of compensation or gain, negotiates, solicits, arranges, or finds a mortgage loan. No individual may act as an originator for more than one licensee.

304:2 New Subparagraph; License Application; Requirements; Originator List. Amend RSA 397-A:5, II by inserting after subparagraph (c) the following new subparagraph:

(d) Each applicant shall provide a list of all individuals, and the address of the work location of each such individual, who will act as originators for the licensee.

304:3 Annual Report; Originator List Included. Amend RSA 397-A:13, I to read as follows:

I. Each licensee shall file, under oath, an annual report with the banking department on or before February 1 each year concerning operations for the preceding year or license period ending December 31 upon the form prescribed by the banking department. [Whenever a licensee operates 2 or more licensed offices or whenever 2 or more affiliated licensees operate licensed offices, then a composite report of such group of licensed offices may be filed in lieu of individual reports.] The annual report shall include a list of all individuals, and the address of the work location of each such individual, who act as originators for the licensee.

304:4 New Paragraph; Definitions; "Originator". Amend RSA 398-A:1 by inserting after paragraph V the following new paragraph:

VI. "Originator" means an individual who is employed or retained and supervised by a mortgage lender or broker required to be licensed under RSA 397-A or 398-A, and who, for compensation or gain or in the expectation of compensation or gain, negotiates, solicits, arranges, or finds a mortgage loan. No individual may act as an originator for more than one licensee.

304:5 License Required; Originator List Added. Amend RSA 398-A:1-a, II to read as follows:

II. The application for such license shall be in writing, under oath and in the form prescribed by the bank commissioner. Each applicant shall provide a list of all individuals, and the address of the work location of each such individual, who will act as originators for the licensee.

304:6 Report; Originator List Added. Amend RSA 398-A:1-e to read as follows:

398-A:1-e Report. Each licensee shall file with the commissioner on or before February 1 of each year a report under oath concerning the business and operations for the preceding calendar year ending December 31 in the form prescribed by the commissioner. [Whenever a licensee operated 2 or more licensed offices or whenever 2 or more affiliated licensees operated licensed offices, then a composite report of such group of licensed offices may be filed in lieu of individual reports.] The annual report shall include a list of all individuals, and the address of the work location of each such individual, who act as originators for the licensee. The commissioner shall publish an analysis of the information required under this section as a part of his annual report. Any licensee failing to file the report required by this section within the time prescribed shall pay to the commissioner the sum of $25 for each calendar day the report is overdue. [If a licensee elects to file a composite report and such composite report is not filed on or before February 1 as required under this section, the penalty prescribed in this section shall apply separately for each license held.]

304:7 Effective Date. This act shall take effect July 1, 2003.

(Approved: July 18, 2003)

(Effective Date: July 1, 2003)