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STATE OF IDAHO
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Is a license required? |
Yes. House Bill 169(Attached as Schedule A) |
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State
specific loan modification law? |
HB 169 Section 26-31-201-4 states that mortgage brokering activities means “means for compensation or gain, or in the expectation of compensation or gain, either directly or indirectly, accepting or offering to accept an application for a residential mortgage loan, assisting or offering to assist in the preparation of an application for a residential mortgage loan on behalf of a borrower, negotiating or offering to negotiate the terms or conditions of a residential mortgage loan with any person making residential mortgage loans or engaging in loan modification activities on behalf of a borrower.” |
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Advantages
of becoming a licensed Mortgage Broker? |
None, it is mandatory. |
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Penalties
for operating in the state without a license: |
HB 169 Section 26-31-203 states that “Any person, except a person exempt under section 26-31-202 Idaho Code, who engages in mortgage brokering activities or mortgage lending activities without first obtaining a license from the department in accordance with this part, shall upon conviction be guilty of a felony.” |
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Is an
advanced fee permitted? |
No, but heavily restricted. HB 169 Section 26-31-210 states 31 “(1) A person subject to this part shall not require a borrower or person seeking a loan modification to pay any fees or charges prior to a residential mortgage loan closing, or prior to the completion of a loan modification, except: (a) Charges actually incurred by the person subject to this part on behalf of the borrower or person seeking a loan modification for services which have been rendered by third parties. These fees may include, but are not limited to, fees for credit reports, flood insurance certifications, property inspections, title insurance commitments, UCC4 lien searches and appraisals; (b) An application fee; (c) A ratelock fee; (d) A commitment fee upon approval of the residential mortgage loan; (e) A cancellation fee which may be charged and collected by a person subject to this part at any time either prior to the scheduled closing of a residential mortgage loan transaction, completion of a loan modification or subsequent thereto. (2) Any fees charged under the authority of this section” |
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Is a
written agreement required? |
Yes. HB 169 Section 26-31-211-11 prohibits that anyone from “Receiving a fee for engaging in loan modification activities except pursuant to a written agreement between the person subject to this part and a person seeking a loan modification. The written agreement must specify the amount of the fee that will be charged to the person seeking a loan modification, specify the terms of the loan for which modification will be sought and disclose the expected impact of the loan modification on the monthly payment and length of the loan.” |
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Other
noteworthy information? |
House Bill 169 went into effect on July 1st. It is not yet in the general state statutes, but it is law in Idaho. |
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Idaho
Statutes |
House Bill 169: Ctrl + Click Here License application: Ctrl + Click Here |
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