1 STATE OF OKLAHOMA
1
2 2nd Session of the 59th Legislature (2024)
2
3 SENATE BILL 1492 By: Hall
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to the Oklahoma Secure and Fair
7 Enforcement for Mortgage Licensing Act; amending 59
8 O.S. 2021, Section 2095.2, which relates to
8 definitions; defining terms; amending 59 O.S. 2021,
9 Section 2095.3, which relates to exemptions; updating
9 statutory reference; amending 59 O.S. 2021, Section
10 2095.5, which relates to licenses; updating statutory
10 references; amending 59 O.S. 2021, Section 2095.6,
11 which relates to required information by applicant;
11 updating statutory references; providing requirements
12 for certain licensure; modifying conditions for
12 renewal and reinstatement; providing for promulgation
13 of rules for certain fees; amending 59 O.S. 2021,
13 Section 2095.7, which relates to requirement for
14 mortgage loan originator license; updating statutory
14 reference; amending 59 O.S. 2021, Section 2095.8,
15 which relates to prelicensing education; updating
15 statutory reference; amending 59 O.S. 2021, Section
16 2095.9, which relates to qualified written test;
16 updating statutory reference; amending 59 O.S. 2021,
17 Section 2095.10, which relates to minimum standards
17 for license renewal for mortgage loan originators;
18 updating statutory references; amending 59 O.S. 2021,
18 Section 2095.11, which relates to mortgage broker
19 licensing requirements; updating statutory
19 references; removing provision for certain licensing
20 for offices; amending 59 O.S. 2021, Section
20 2095.11.1, which relates to mortgage lender licensing
21 requirements; updating statutory references; removing
21 provision for certain licensing for offices; amending
22 59 O.S. 2021, Section 2095.12, which relates to
22 minimum standards for license renewal for mortgage
23 brokers; updating statutory references; amending 59
23 O.S. 2021, Section 2095.12.1, which relates to
24 minimum standards for license renewal for mortgage
24
Req. No. 2848 Page 1
 1 lenders; updating statutory references; amending 59
1 O.S. 2021, Section 2095.13, which relates to
2 administrator’s requirements; updating statutory
2 references; amending 59 O.S. 2021, Section 2095.14,
3 which relates to challenge of information; updating
3 statutory references; amending 59 O.S. 2021, Section
4 2095.18, which relates to violations; updating
4 statutory references; amending 59 O.S. 2021, Section
5 2095.20, which relates to the Oklahoma Mortgage
5 Broker and Mortgage Loan Originator Recovery Fund;
6 increasing amount for reimbursement; amending 59 O.S.
6 2021, Section 2095.21, which relates to continuing
7 education requirements; updating statutory
7 references; amending 59 O.S. 2021, Section 2095.22,
8 which relates to confidential information; updating
8 statutory references; amending 59 O.S. 2021, Section
9 2095.23, which relates to administrative
9 investigations; removing authority for Administrator
10 to require payment of an examination fee at time of
10 certain applications; amending 59 O.S. 2021, Section
11 2095.24, which relates to licensee required reports;
11 updating statutory references; amending 59 O.S. 2021,
12 Section 2095.25, which relates to Consumer Credit
12 required reports; updating statutory references;
13 authorizing the use of remote locations; requiring
13 certain policies and procedures to be put in place;
14 specifying certain requirements to be in place for
14 lawful use; providing for codification; and providing
15 an effective date.
15
16
16
17
17
18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
18
19 SECTION 1. AMENDATORY 59 O.S. 2021, Section 2095.2, is
19
20 amended to read as follows:
20
21 Section 2095.2. As used in the Oklahoma Secure and Fair
21
22 Enforcement for Mortgage Licensing Act:
22
23 1. “Administrator” means the Administrator of Consumer Credit;
23
24
24
Req. No. 2848 Page 2
 1 2. “Affiliate” means an entity which directly or indirectly,
1
2 through one or more intermediaries, controls, is controlled by or is
2
3 under common control with the entity specified;
3
4 3. “Borrower” means any individual who consults with or retains
4
5 a mortgage broker or mortgage loan originator in an effort to obtain
5
6 or seek advice or information on obtaining or applying to obtain or
6
7 modify a residential mortgage loan for himself, herself, or
7
8 individuals including himself or herself, regardless of whether the
8
9 individual actually obtains or modifies such a loan;
9
10 4. “Branch office” means any location, other than a mortgage
10
11 lender’s or mortgage broker’s principal place of business or a
11
12 remote location, where the licensee or its employees or independent
12
13 contractors maintain a physical presence for the purpose of
13
14 conducting business;
14
15 5. “Commission” means the Commission on Consumer Credit;
15
16 5. 6. “Compensation” means anything of value or any benefit
16
17 including points, commissions, bonuses, referral fees and loan
17
18 origination fees;
18
19 6. 7. “Depository institution” has the same meaning as in
19
20 Section 3 of the Federal Deposit Insurance Act and includes any
20
21 credit union;
21
22 7. 8. “Entity” means a corporation, company, limited liability
22
23 company, partnership or association;
23
24
24
Req. No. 2848 Page 3
 1 8. 9. “Federal banking agencies” means the Board of Governors
1
2 of the Federal Reserve System, the Comptroller of the currency, the
2
3 Director of the Office of Thrift Supervision, the National Credit
3
4 Union Administration and the Federal Deposit Insurance Corporation;
4
5 9. 10. “Immediate family member” means a spouse, child,
5
6 sibling, parent, grandparent or grandchild and includes stepparents,
6
7 stepchildren, stepsiblings and adoptive relationships;
7
8 10. 11. “Individual” means a natural person and also includes a
8
9 sole proprietorship;
9
10 11. 12. a. “Loan processor or underwriter” means an entity
10
11 or individual who performs support duties as an
11
12 employee at the direction of and subject to the
12
13 supervision and instruction of an entity or individual
13
14 licensed or exempt from licensing as provided in
14
15 Section 2095.3 of this title.
15
16 b. For purposes of this paragraph, the term “clerical or
16
17 support duties” may include subsequent to the receipt
17
18 of an application, the receipt collection,
18
19 distribution and analysis of information necessary for
19
20 the processing or underwriting or modification of a
20
21 loan, to the extent that such communication does not
21
22 include offering or negotiating or modifying loan
22
23 rates or terms, or counseling consumers about
23
24 residential mortgage loan rates or terms.
24
Req. No. 2848 Page 4
 1 c. An entity or individual engaging solely in loan
1
2 processor or underwriter activities shall not
2
3 represent to the public through advertising or other
3
4 means of communicating or providing information,
4
5 including the use of business cards, stationery,
5
6 brochures, signs, rate lists or other promotional
6
7 items, that such entity or individual can or will
7
8 perform any of the activities of a mortgage broker or
8
9 mortgage loan originator;
9
10 12. 13. a. “Mortgage broker” means an entity who for
10
11 compensation or gain or in the expectation of
11
12 compensation or gain:
12
13 (1) takes a residential mortgage loan application, or
13
14 (2) offers, negotiates or modifies the terms of a
14
15 residential mortgage loan, or
15
16 (3) services a residential mortgage.
16
17 b. Mortgage broker does not include:
17
18 (1) an entity engaged solely as a loan processor or
18
19 underwriter except as otherwise provided in
19
20 Section 2095.5 of this title,
20
21 (2) an entity that only performs real estate
21
22 brokerage activities and is licensed or
22
23 registered in accordance with Oklahoma law,
23
24 unless the entity is compensated by a lender, a
24
Req. No. 2848 Page 5
 1 mortgage broker, or other mortgage loan
1
2 originator or by any agent of such lender,
2
3 mortgage broker or other mortgage loan
3
4 originator, and
4
5 (3) an entity solely involved in extensions of credit
5
6 relating to timeshare plans, as that term is
6
7 defined in 11 U.S.C., Section 101(53D) United
7
8 States Code;
8
9 13. 14. “Mortgage lender” means an entity that takes an
9
10 application for a residential mortgage loan, makes a residential
10
11 mortgage loan or services a residential mortgage loan and is an
11
12 approved or authorized:
12
13 a. mortgagee with direct endorsement underwriting
13
14 authority granted by the United States Department of
14
15 Housing and Urban Development,
15
16 b. seller or servicer of the Federal National Mortgage
16
17 Association or the Federal Home Loan Mortgage
17
18 Corporation, or
18
19 c. issuer for the Government National Mortgage
19
20 Association;
20
21 14. 15. a. “Mortgage loan originator” means an individual
21
22 who for compensation or gain or in the expectation of
22
23 compensation or gain:
23
24 (1) takes a residential mortgage loan application, or
24
Req. No. 2848 Page 6
 1 (2) offers or negotiates or modifies the terms of a
1
2 residential mortgage loan.
2
3 b. Mortgage loan originator does not include:
3
4 (1) an individual engaged solely as a loan processor
4
5 or underwriter except as otherwise provided in
5
6 Section 2095.5 of this title,
6
7 (2) an individual that only performs real estate
7
8 brokerage activities and is licensed or
8
9 registered in accordance with Oklahoma law,
9
10 unless the individual is compensated by a lender,
10
11 a mortgage broker, or other mortgage loan
11
12 originator or by any agent of such lender,
12
13 mortgage broker, or other mortgage loan
13
14 originator, and
14
15 (3) an individual solely involved in extensions of
15
16 credit relating to timeshare plans, as that term
16
17 is defined in 11 U.S.C., Section 101(53D);
17
18 15. 16. “Nationwide Mortgage Multistate Licensing System and
18
19 Registry” means a mortgage licensing system developed and maintained
19
20 by the Conference of State Bank Supervisors and the American
20
21 Association of Residential Mortgage Regulators for the licensing and
21
22 registration of licensed mortgage brokers and mortgage loan
22
23 originators;
23
24
24
Req. No. 2848 Page 7
 1 16. 17. “Nontraditional mortgage product” means any mortgage
1
2 product other than a thirty-year fixed rate mortgage;
2
3 17. 18. “Real estate brokerage activity” means any activity
3
4 that involves offering or providing real estate brokerage services
4
5 to the public, including:
5
6 a. acting as a real estate agent or real estate broker
6
7 for a buyer, seller, lessor or lessee of real
7
8 property,
8
9 b. bringing together parties interested in the sale,
9
10 purchase, lease, rental or exchange of real property,
10
11 c. negotiating, on behalf of any party, any portion of a
11
12 contract relating to the sale, purchase, lease, rental
12
13 or exchange of real property, other than in connection
13
14 with providing financing with respect to any such
14
15 transaction,
15
16 d. engaging in any activity for which an entity engaged
16
17 in the activity is required to be registered or
17
18 licensed as a real estate agent or real estate broker
18
19 under any applicable law, and
19
20 e. offering to engage in any activity or act in any
20
21 capacity, described in this paragraph;
21
22 18. 19. “Registered mortgage loan originator” means any
22
23 individual who:
23
24
24
Req. No. 2848 Page 8
 1 a. meets the definition of mortgage loan originator and
1
2 is an employee of:
2
3 (1) a depository institution,
3
4 (2) a subsidiary that:
4
5 (a) is owned and controlled by a depository
5
6 institution, and
6
7 (b) is regulated by a federal banking agency, or
7
8 (3) an institution regulated by the Farm Credit
8
9 Administration, and
9
10 b. is registered with and maintains a unique identifier
10
11 through, the Nationwide Mortgage Licensing System and
11
12 Registry;
12
13 19. 20. “Remote location” means a location, other than the
13
14 principal place of business or a branch office, at which the
14
15 employees or independent contractors of a licensee may conduct
15
16 mortgage business. Licensable activities from a remote location
16
17 shall be permitted when conducted under the supervision of the
17
18 licensee and when all requirements in Section 22 of this act are
18
19 satisfied;
19
20 21. “Residential mortgage loan” means any loan primarily for
20
21 personal, family or household use that is secured by a mortgage,
21
22 deed of trust, or other equivalent consensual security interest on a
22
23 dwelling as defined in Section 103(v) of the Truth in Lending Act or
23
24
24
Req. No. 2848 Page 9
 1 residential real estate upon which is constructed or intended to be
1
2 constructed such a dwelling;
2
3 20. 22. “Residential real estate” means any real property
3
4 located in this state upon which is constructed or intended to be
4
5 constructed a dwelling as defined in paragraph 19 21 of this
5
6 section; and
6
7 23. “Servicing” means the administration of a resident mortgage
7
8 loan following the closing of such loan. An entity shall be deemed
8
9 to be servicing if they either hold the servicing rights, or engage
9
10 in any activities determined to be servicing, including:
10
11 a. collection of monthly mortgage payments,
11
12 b. the administration of escrow accounts,
12
13 c.