SENATE BILL REPORT
SB 5077
As of January 11, 2021
Title: An act relating to providing authority to licensed companies to allow licensed mortgage loan originators to work from their residences without the company licensing the residence as a branch office of the company.
Brief Description: Providing authority to licensed companies to allow licensed mortgage loan originators to work from their residences without the company licensing the residence as a branch office of the company.
Sponsors: Senators Dozier and Mullet; by request of Department of Financial Institutions.
Brief History:
Committee Activity: Business, Financial Services & Trade: 1/12/21.
Brief Summary of Bill
  • Provides mortgage loan originators the flexibility to work from their residence under certain circumstances.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Clinton McCarthy (786-7319)
Background:

Under existing statute, mortgage loan originators licensed by the Department of Financial Institutions must originate mortgage loans from a licensed location.  If a mortgage loan was originated from someone's residence, it would be a violation of the Consumer Loan Act, unless the residence is licensed for mortgage loan origination.
Summary of Bill:

Mortgage loan originators are provided the flexibility to work from their home without licensing their home as a branch location, provided:

  • state security requirements are in place;
  • physical business records may not be kept at the residence; and
  • work is conducted through the licensed company’s secure operating system.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.