SB 0719 - Fiscal Note

Fiscal Note - SB 0719 - Modifies mortgage insurance requirements for residential loans

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3261-01

BILL NO. Perfected SB 719

SUBJECT: Banks & Financial Institutions

TYPE: Original

DATE: March 4, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 2 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Economic Development-Divisions of Finance and Credit Unions and the Department of Insurance assume there would be no fiscal impact on their agencies as a result of this legislation.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

The proposal would remove the restriction on allowing mortgage insurers to insure mortgages not exceeding 97% of the fair market value of the real estate only when the loan is extended to a low or moderate-income borrower or a first-time home buyer under a program designed to foster affordable housing.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Economic Development-Divisions of Finance and Credit Unions

Department of Insurance

Jeanne Jarrett, CPA

Director

March 4, 1998