The bill amends the Fair Mortgage Lending Act in Arkansas to enhance the regulatory framework surrounding mortgage lending and servicing. It introduces new definitions for key terms such as "Affiliate," "Authorized user," and "Covered institution servicer," which clarify the roles and responsibilities of various entities involved in mortgage lending. The bill also updates the definition of "Exempt person" to include certain government agencies and nonprofit organizations, and revises exemption date references to January 1, 2025. Additionally, it redefines terms like "loan officer" and "mortgage servicer," while introducing new concepts such as "mortgage call report" and "multifactor authentication" to modernize the Act and improve consumer protection.

Furthermore, the bill establishes new requirements for financial institutions regarding risk management and information security programs. Covered institution servicers are mandated to conduct annual external audits, maintain robust risk management programs, and develop comprehensive information security plans tailored to their operations. The legislation also requires financial institutions to notify the Securities Commissioner of any consumer information breaches within 45 days and to create business continuity and disaster recovery plans. Notably, institutions with fewer than 5,000 consumers are exempt from some of these requirements. Overall, the bill aims to strengthen the governance, financial stability, and security practices of mortgage servicers and financial institutions in Arkansas.

Statutes affected:
HB 1466: 23-39-502, 23-39-508, 23-39-504, 23-39-505(f), 23-39-505(g), 23-39-505, 23-39-506(f), 23-39-506