Bill Text: MS HB934 | 2024 | Regular Session | Engrossed
Bill Title: Consumer reports; limit redisclosure to third party.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-04-02 - Died In Committee [HB934 Detail]
Download: Mississippi-2024-HB934-Engrossed.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Business and Commerce
By: Representative Yancey
House Bill 934
(As Passed the House)
AN ACT TO LIMIT THE REDISCLOSURE OF CONSUMER REPORTS REQUESTED IN CONNECTION WITH A CREDIT TRANSACTION INVOLVING A RESIDENTIAL MORTGAGE LOAN; TO DEFINE CERTAIN TERMS RELATING TO THE ACT; TO BRING FORWARD SECTIONS 75-24-215, 81-18-9, AND 93-11-69, MISSISSIPPI CODE OF 1972, WHICH RELATE TO OBLIGATIONS OF CONSUMER REPORTING AGENCIES, THE MISSISSIPPI S.A.F.E. MORTGAGE ACT, AND ENFORCEMENT OF SUPPORT FOR DEPENDENTS, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) As used in this act, the following terms have the meanings as defined in this section, unless the context clearly indicates otherwise:
(a) "Insured credit union" has the meaning given in Section 101 of the Federal Credit Union Act (12 USC 1752).
(b) "Insured depository institution" has the meaning given in Section 3 of the Federal Deposit Insurance Act (12 USC 1813(c)).
(c) "Residential mortgage loan" has the meaning given in Section 1503 of the S.A.F.E. Mortgage Licensing Act of 2008 (12 USC 5102).
(d) "Servicer" has the meaning given in Section 6(i) of the Real Estate Settlement Procedures Act of 1974 (12 USC 2605(i)).
(2) If a person requests a consumer report from a consumer reporting agency in connection with a credit transaction involving a residential mortgage loan, that agency may not, solely on the basis of that request, furnish that consumer report to another person unless that other person:
(a) Has submitted documentation to that agency certifying that such other person has the authorization of the consumer to whom the consumer report relates; or
(b) (i) Has originated the current residential mortgage loan of the consumer;
(ii) Is the servicer of the current residential mortgage loan of the consumer; or
(iii) 1. Is an insured depository institution or insured credit union; and
2. Holds a current account for the consumer to whom the consumer report relates.
SECTION 2. If a person requests a report from a consumer reporting agency in connection with a credit transaction involving an extension of credit secured by real estate, such agency shall not, solely on the basis of such request, furnish a report to a third party, unless such third party has submitted documentation to such agency certifying that such third party has the consumer's consent or has a current relationship, relating to credit, servicing, or other financial services, with such consumer.
SECTION 3. Section 75-24-215, Mississippi Code of 1972, is brought forward as follows:
75-24-215. If a third party requests access to a consumer report on which a security freeze applies, and this request is in connection with an application for credit, insurance or any other use, and the consumer does not immediately request the consumer reporting agency to lift the security freeze and allow his or her credit report to be accessed for that specific party or period of time, the third party may treat the consumer's application as incomplete.
SECTION 4. Section 81-18-9, Mississippi Code of 1972, is brought forward as follows:
81-18-9. (1) Applicants for a license shall apply in a form as prescribed by the commissioner. Each such form shall contain content as set forth by rule, regulation, instruction or procedure of the commissioner and may be changed or updated as necessary by the commissioner in order to carry out the purposes of this chapter.
(2) The mortgage broker and mortgage lender application through the Nationwide Mortgage Licensing System and Registry shall include, but is not limited to, the following:
(a) The legal name, residence and business address of the applicant and, if applicable, the legal name, residence and business address of every principal and executive officer, together with the résumé of the applicant and of every principal and executive officer of the applicant. In addition, an independent credit report obtained from a consumer-reporting agency described in Section 603(p) of the Fair Credit Reporting Act and information related to any administrative, civil or criminal findings by any governmental jurisdiction of every principal and executive officer.
(b) The legal name of the mortgage broker or mortgage lender in addition to the name under which the applicant will conduct business in the state, neither of which may be already assigned to a licensed mortgage broker or mortgage lender.
(c) The complete address of the applicant's principal place of business, branch office(s) and any other locations at which the applicant will engage in any business activity covered by this chapter. All locations shall be within the United States of America or a territory of the United States of America, including Puerto Rico and the U.S. Virgin Islands.
(d) A copy of the certificate of incorporation, if a Mississippi corporation.
(e) Documentation satisfactory to the department as to a certificate of existence of authority to transact business lawfully in Mississippi from the Mississippi Secretary of State's office, if a limited liability company, partnership, trust or any other group of persons, however organized. This paragraph does not pertain to applicants organized as an individual or as a sole proprietorship.
(f) If a foreign entity, a copy of a certificate of authority to conduct business in Mississippi and the address of the principal place of business of the foreign entity.
(g) Documentation of a minimum of two (2) years' experience directly related to mortgage activities by a person named as the qualifying individual of the company. The qualifying individual shall be primarily responsible for the operations of the licensed mortgage broker or mortgage lender. Only one (1) qualifying individual shall be named for Mississippi and this person shall be the qualifying individual for only one (1) licensee. Evidence of experience shall include, where applicable:
(i) Copies of business licenses issued by governmental agencies.
(ii) Employment history of the person filing the application for at least two (2) years before the date of the filing of an application, including, but not limited to, job descriptions, length of employment, names, addresses and phone numbers for past employers.
(iii) Any other data and pertinent information as the department may require with respect to the applicant, its directors, principals, trustees, officers, members, contractors or agents. A résumé alone shall not be sufficient proof of employment history.
(3) The mortgage broker and mortgage lender applications shall be filed on the Nationwide Mortgage Licensing System and Registry together with the following:
(a) The license fee specified in Section 81-18-15;
(b) An original or certified copy of a surety bond in favor of the State of Mississippi for the use, benefit and indemnity of any person who suffers any damage or loss as a result of the company's breach of contract or of any obligation arising therefrom or any violation of law;
(c) A set of fingerprints from any local law enforcement agency from the following applicants:
(i) All persons operating as a sole proprietorship that plan to conduct a mortgage-brokering or lending business in the State of Mississippi;
(ii) Partners in a partnership or principal owners of a limited liability company that own at least ten percent (10%) of the voting shares of the company;
(iii) Any shareholders owning ten percent (10%) or more of the outstanding shares of the corporation;
(iv) All executive officers of the applicant;
(v) All loan originators; and
(vi) The named qualifying individual of the company as required in Section 81-18-9(2)(g). The applicant shall name only one (1) individual as the qualifying individual for the State of Mississippi; and
(d) At least one (1) employee shall be licensed as a loan originator at a licensed location.
(4) In connection with an application for licensing as a mortgage broker or lender under this chapter, the required stockholders, owners, directors and executive officers of the applicant shall, at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the individual's identity, including:
(a) Fingerprints from any local law enforcement agency for submission to the Federal Bureau of Investigation and any governmental entity authorized to receive that information for a state, national and/or international criminal history background check; and
(b) Personal history and experience in a form prescribed by the Nationwide Mortgage Licensing System and Registry, including the submission of authorization for the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
(i) An independent credit report obtained from a consumer-reporting agency described in Section 603(p) of the Fair Credit Reporting Act; and
(ii) Information related to any administrative, civil or criminal findings by any governmental jurisdiction.
(5) Upon receipt of an application for licensure, the department or designated third party shall conduct an investigation as it deems necessary to determine that the applicant and its officers, directors and principals are of good character and ethical reputation; that the applicant demonstrates reasonable financial responsibility; and that the applicant has reasonable policies and procedures to receive and process customer grievances and inquiries promptly and fairly.
(6) The commissioner shall not license an applicant unless he is satisfied that the applicant will operate its mortgage activities in compliance with the laws, rules and regulations of this state and the United States.
(7) If an applicant satisfies the requirements of this chapter for a mortgage broker or mortgage lender license, the commissioner shall issue the license unless the commissioner finds any of the following:
(a) The applicant has had a mortgage lender, mortgage broker or mortgage servicer license revoked in any governmental jurisdiction, except that a subsequent formal vacation of the revocation shall not be deemed a revocation; or
(b) The applicant or its controlling persons has been convicted of, or pled guilty or nolo contendere to, (i) a felony in a domestic, foreign or military court during the seven-year period preceding the date of application for licensing; or (ii) at any time preceding the date of application if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. However, any pardon or expungement of a conviction shall not be a conviction for purposes of this subsection.
(8) Applicants for a mortgage loan originator license shall apply in a form as prescribed by the commissioner and shall be filed on the Nationwide Mortgage Licensing System and Registry. Each such form shall contain content as set forth by rules, regulations, instructions or procedures of the commissioner and may be changed or updated as necessary by the commissioner in order to carry out the purposes of this chapter. The initial license of a mortgage loan originator shall be accompanied by a fee of Two Hundred Dollars ($200.00), to be paid to the Nationwide Mortgage Licensing System and Registry, and any additional fees as required by the Nationwide Mortgage Licensing System and Registry. The commissioner shall not issue a mortgage loan originator license unless the commissioner makes at a minimum the following findings:
(a) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that a later formal vacation of that revocation shall not be deemed a revocation.
(b) The applicant has not been convicted of, or pled guilty or nolo contendere to, (i) a felony in a domestic, foreign or military court during the seven-year period preceding the date of application for licensing; or (ii) at any time preceding the date of application if such felony involved an act of fraud, dishonesty, a breach of trust or money laundering. However, any pardon or expungement of a conviction shall not be a conviction for purposes of this subsection.
(c) The applicant has demonstrated financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently within the purposes of this chapter.
(d) The applicant has completed the prelicensing education requirement described in Section 81-18-14(1).
(e) The applicant has passed a written test that meets the test requirement described in Section 81-18-14(7).
(f) The applicant has met the surety bond requirement as provided in Section 81-18-11.
(g) This individual must work for a Mississippi licensed company and work from the location licensed with the department. The licensed location that he or she is assigned to must be within one hundred twenty-five (125) miles of his or her residency. If the licensed loan originator resides and works in Mississippi, then he or she may work from any licensed location of the licensed company within the State of Mississippi. However, an owner of a minimum of ten percent (10%) of a licensed company or the named qualifying individual on file with the department, who is a licensed loan originator with the department, may work from any licensed location of the licensed company within the State of Mississippi in the capacity of a loan originator as described in this chapter.
(9) In order to fulfill the purposes of this chapter, the commissioner is authorized to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities designated by the Nationwide Mortgage Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter.
(10) In connection with an application for licensing as a mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant's identity, including:
(a) Fingerprints for submission to the Federal Bureau of Investigation, and any governmental agency or entity authorized to receive that information for a state, national and/or international criminal history background check; and
(b) Personal history and experience in a form prescribed by the Nationwide Mortgage Licensing System and Registry, including the submission of authorization for the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
(i) An independent credit report obtained from a consumer-reporting agency described in Section 603(p) of the Fair Credit Reporting Act; and
(ii) Information related to any administrative, civil or criminal findings by any governmental jurisdiction.
(11) For the purposes of this section and in order to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of subsection (10)(a) and (b)(ii) of this section, the commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting information from and distributing information to the Department of Justice or any governmental agency.
(12) For the purposes of this section and in order to reduce the points of contact which the commissioner may have to maintain for purposes of subsection (10)(b)(i) and (ii) of this section, the commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting and distributing information to and from any source so directed by the commissioner.
SECTION 5. Section 93-11-69, Mississippi Code of 1972, is brought forward as follows:
93-11-69. (1) As used in this section:
(a) "Noncustodial parent" means a parent from whom the Department of Human Services is collecting support payments, and shall have the same meaning as "absent parent."
(b) "Consumer reporting agency" means any person who, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and who uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.
(c) "Department" means the Department of Human Services.
(d) "Overdue support" means any payments that are ordered by any court to be paid by an absent parent for the support of a child that have remained unpaid for at least thirty (30) days after payment is due. Overdue support shall also include payments that are ordered by any court to be paid for maintenance of a spouse in cases in which the department is collecting such support in conjunction with child support.
(2) The department shall make available to any consumer reporting agency a report of the amount of overdue support owed by an absent parent.
(3) Before any information regarding an absent parent's overdue support may be made available pursuant to subsection (2) of this section, a copy of the report shall be mailed to the absent parent at such parent's last known address and the absent parent shall be given the opportunity to contest the information contained in the report as follows:
(a) The absent parent may, within fifteen (15) days after such notice is mailed, contest the accuracy of the information contained in the report by filing with the department a brief written statement concerning the nature of the alleged inaccuracies.
(b) Upon receipt of such statement the department shall, within a reasonable amount of time, reexamine the information contained in the report.
(c) If upon such reexamination the information in the report is found to be inaccurate, the department shall correct the information and send a copy of such corrected information to the absent parent.
(d) If upon such reexamination the information contained in the report is found to be accurate, the department shall notify the absent parent of this fact.
(e) Within ten (10) days after a copy of the reexamined information contained in the report is mailed to the absent parent, such absent parent may again contest the accuracy of such information by filing a brief written statement concerning the alleged inaccuracies and the department shall clearly note in any report to the consumer reporting agency the fact that the information is disputed unless there are reasonable grounds to believe that the statement filed by the absent parent is frivolous or irrelevant.
(4) The fee charged by the department for furnishing a report pursuant to this section shall not exceed the actual cost of furnishing such report.
(5) The Child Support Unit of the department may provide overdue support information to consumer reporting agencies through an automated computer system free of charge and with notice to the defendant as required by Title IV-D of the Social Security Act and the implementing regulations.
SECTION 6. This act shall take effect and be in force from and after July 1, 2024.
