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WBK Industry News - State Regulatory Developments

New Hampshire Amends Provisions Regarding Mortgage Exemptions

The state of New Hampshire recently amended its laws regarding the licensing of nondepository mortgage bankers, brokers, and servicers to provide for a new exemption for certain second mortgage loans funded by exempt state entities.  House Bill 740 adds a new subsection which exempts second mortgage loans from such laws when a second mortgage loan is: (i) offered in conjunction with a first mortgage loan funded by an exempt state entity; and (ii) “negotiated, arranged, found, or procured through a licensed loan originator”—who is not employed by the exempt state entity—in association with the first mortgage.  In order to qualify for this exemption, a second mortgage must be offered in a manner consistent with the standards with regard to operations of exempt state entities, and the licensed loan originator must not have been compensated for the second mortgage in a way that incentivized him or her to act against the consumer’s best interest.

The bill also makes a minor wording change to the introductory paragraph of the exemption section at issue above.

These provisions took effect on June 5, 2019.