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 aim to 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, while revising exemption date references to January 1, 2025. Additionally, it redefines terms like "loan officer" and "mortgage servicer," expanding their scope and introducing new concepts such as "mortgage call report" and "multifactor authentication" to improve security measures.

Furthermore, the bill grants the Securities Commissioner enhanced authority to implement necessary rules and impose conditions on high-risk servicers. It establishes new requirements for surety bonds, mandates annual external audits for covered institution servicers, and outlines comprehensive risk management and information security programs. Financial institutions are required to conduct regular risk assessments, maintain incident response plans, and notify the Securities Commissioner of any consumer information breaches within 45 days. Overall, the legislation aims to modernize the mortgage lending industry in Arkansas, strengthen consumer protection, and ensure compliance with regulatory standards.

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
Act 262: 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