Transitional Mortgage Licensing In Bill To Amend RMLA Reported Out of Senate Committee After Testimony by MBA-NJ Exec. Director

To: All Members
From: E. Robert Levy, Esq.

For Immediate Release

June 21, 2018

On Monday, MBA-NJ Executive Director E. Robert Levy testified before the Senate Commerce Committee in Trenton, New Jersey on the bill to amend the Residential Mortgage Lending Act (RMLA) that includes a provision for the allowance of transitional mortgage licensing in the State. The bill, S 709, may be voted by the full Senate today. There is one floor amendment needed to conform fully with the transitional provisions added to the SAFE Act by the recently enacted Federal Law.

Once enacted into law, our bill will be one of the earliest to track the new SAFE Act transitional licensing requirements providing a 120 day period for a state MLO moving to a company in another state or a registered MLO leaving a depository institutions to work for a state -licensed mortgage company to continue to work while meeting all of the state’s licensing requirements . The state-licensed company hiring the transitioning MLO is responsible to see that the individual is in compliance with all legal/regulatory requirements in the performance of his/her duties with the company during the transitional period.

We will keep our members informed of further developments regarding this bill as well as the Assembly version. Additional information regarding other provisions in the bill will be following soon.

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