FINAL BILL REPORT
SB 5077
C 15 L 21
Synopsis as Enacted
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, Mullet, Brown, Das, Warnick and Wilson, C.; by request of Department of Financial Institutions.
Senate Committee on Business, Financial Services & Trade
House Committee on Consumer Protection & Business
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 originates from someone's residence, it is a violation of the Consumer Loan Act, unless the residence is licensed for mortgage loan origination.
Summary:

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.
Votes on Final Passage:
Senate 49 0
House 98 0
Effective:

July 25, 2021