|
SCS/HB 329 - This act modifies the law affecting financial institutions. Currently, trust companies, including private trust companies, are examined by the Director of Finance every twelve or eighteen months. This act provides that private trust companies will be examined at least once every thirty-six months. Currently, for loans of 30 days or longer other than open-end credit, lenders may charge a fee not to exceed 5% of the principal amount not to exceed $75. This act raises the fee to 10% of the principal amount not to exceed $75. Currently, for an open-end credit contract that provides for open-end credit loans of 31 days or longer, the lender may charge a credit advance fee of the lesser of $25 or 5% of the credit advanced from the line of credit. This act raises the fee to up to the lesser of $75 and 10%. Currently, the directors of the Division of Finance and the Division of Credit Unions are required to examine and determine the number and total dollar amount of residential real estate loans originated, purchased, or foreclosed and the number of residential real estate loan applications denied by financial institutions with offices in counties or cities with a population over 250,000. The directors are required to conclude whether such institutions have violated state law and report such conclusions along with information required under the Federal Home Mortgage Disclosure Act to the Governor and the Director of the Department of Insurance Financial Institutions and Professional Registration. This act requires that the report only include the number and type of violation, a statement of enforcement actions taken, names of institutions found to be in violation, the number and nature of complaints received, and action taken on each complaint. Currently, the division directors have the authority to conduct hearings when he or she has reason to believe there is a violation based on examination, investigation of a complaint, a report by the financial institution, or the contents of a public document. This act repeals the provision enumerating the basis for reasonable belief. The act repeals a provision requiring that certain institutions that are not regulated by a division director file a report with the Division of Finance containing the number and dollar amount of residential real estate loans originated, purchased, or foreclosed. This act is similar to SB 235 (2013), SB 254 (2013), HCS/HB 176 (2013), SB 196 (2013), HB 144 (2013), and HB 748 (2013). CHRIS HOGERTY
|
