Reduction in Continuing Education Requirements
S.B. 2504 amends the continuing education requirements under the SAFE Act by (1) reducing the number of hours of education a licensed mortgage loan originator must complete each year from twelve to eight hours and (2) eliminating the requirement that a licensed originator obtain two hours of SAFE Act education each year.
Change in Advertising Requirements
The SAFE Act currently instructs the Mississippi Department of Banking and Consumer Finance (“Banking Department”) to promulgate regulations governing the advertising of mortgage loans to address certain specific requirements. S.B. 2504 amends the SAFE Act to eliminate one of these requirements. As of July 1, 2016, the SAFE Act will no longer instruct the Banking Department to promulgate regulations prohibiting a licensee from advertising its services in Mississippi in any media disseminated primarily in the state, whether print or electronic, without including the words “Mississippi Licensed Mortgage Company” or, if the initial license was obtained after July 1, 2007, the words “Licensed by the Mississippi Department of Banking and Consumer Finance” (collectively, the “licensing identification disclosure”).
New Mailing Address for Mortgage Origination Agreement Disclosure Requirements
S.B. 2504 amends the mortgage origination agreement disclosure requirements under the SAFE Act to change the address that must be disclosed for the Banking Department. All other disclosure requirements remain the same. As of July 1, 2016, mortgage origination agreements must disclose that complaints against a licensee may be made by contacting the Banking Department at the following address:
New Fees for Loan Payoffs
The SAFE Act currently requires licensees to provide the loan payoff amount within three business days of an oral or written request from a borrower or third party. Proof of borrower authorization must be submitted for any third party request. S.B. 2504 amends the SAFE Act to add that the payoff statement must be an understandable and accurate statement of the total amount required to pay off the mortgage loan as of a specified date. The SAFE Act, as amended, does not provide a model payoff statement form.
Change in Timing of Delivery of Notice of Default
S.B. 2504 changes the timing requirements for the mailing of a notice of default to borrowers in non-judicial foreclosure actions. As of July 1, 2016, a notice of default must be mailed to a borrower at least forty-five days prior to the date a power-of-sale foreclosure auction is conducted. The SAFE Act currently requires a mortgage lender to mail a notice of default to the borrower at least forty-five days before the initiation of a foreclosure action. The SAFE Act prescribes specific content requirements for notices of default and these requirements were not changed under S.B. 2504.
New “Bad Acts”
The SAFE Act currently includes a list of activities that a licensee may not engage in, such as fraudulent residential mortgage underwriting practices. S.B. 2504 amends the SAFE Act to add that a licensee may not:
Change in Registration Requirements
S.B. 2504 eliminates the requirement for mortgage loan originators to be registered through the NMLS. Originators must continue to be licensed through the NMLS.
New Reporting Requirements
S.B. 2504 adds four new types of events and deletes one type of event that must be reported to the NMLS or the Commissioner of the Banking Department. Within fifteen days of the occurrence of any of the following new events, a licensed mortgage company must file any applicable change in the disclosure questions with the NMLS or file a written report with the Commissioner describing the event and its expected impact on the activities of the company in the state:
The SAFE Act continues to require the reporting of other events, such as a filing for bankruptcy or reorganization of a company. As of July 1, 2016, a licensed mortgage company will no longer be required to report any misdemeanor conviction, in which fraud is an essential element, of any of the company's directors, executive officers, qualifying individual, or loan originators.
Changes to Recordkeeping Requirements
Enforcement and Civil Penalties
S.B. 2504 adds a number of provisions to the SAFE Act imposing civil penalties for noncompliance and provides the Commissioner of the Banking Department with additional enforcement tools:
The SAFE Act has been amended and reenacted several times since its original enactment in 2000. S.B. 2504 amends and reenacts the SAFE Act through June 2020. The SAFE Act, as amended, will “stand repealed” on July 1, 2020. A complete copy of the text of S.B. 2504 is available here: