On June 30, 2014, Act 260 (HB 807) was put into effect by the Louisiana Office of Financial Institutions. The Act adds licensure requirements for professionals engaged in residential mortgage servicing, which is defined as a means of collecting or remitting payment for another or the right to collect or remit payments for another relative to the principal, interest, tax, insurance or other payment under a mortgage loan.
The Act subjects mortgage servicers to the same licensing requirements (application, renewal and surety bond) as other mortgage brokers and lenders in the state. Mortgage servicers must comply with the new licensing requirement — including the posting of a surety bond — on or before June 30, 2015. The new mortgage servicer licensing requirements, including the surety bond amount, have not been released yet.
If a professional is currently licensed in Louisiana for mortgage brokering or lending activities, there is no requirement for an additional license to perform mortgage servicing. However, if a professional performs mortgage servicing for Louisiana consumers, he or she must designate mortgage servicing as a “business activity” of their Louisiana license in the NMLS (Nationwide Mortgage Licensing System) online licensing system.
The experts at SuretyBonds.com make every effort to stay up-to-date on new surety bond requirements. We’ll feature new information regarding this upcoming surety bond requirement for Louisiana mortgage servicers as soon as we have it. In the meantime, call 1 (800) 308-4358 between 7 a.m. and 7 p.m. CST Monday through Thursday and between 7 a.m. and 6 p.m. on Friday. Or, contact us online 24/7.