What is the MISSISSIPPI MORTGAGE CONSUMER PROTECTION LAW?
The stated purpose of the act is as follows:
TO PROVIDE FOR THE LICENSING OF MORTGAGE COMPANIES BY THE DEPARTMENT OF BANKING AND CONSUMER FINANCE; TO PROVIDE FOR EXEMPTIONS FROM LICENSURE; TO ESTABLISH PROCEDURES AND CRITERIA FOR APPLICANTS TO BECOME LICENSED; TO ESTABLISH LICENSE RENEWAL PROCEDURES AND CRITERIA; TO REQUIRE NOTIFICATION OF CERTAIN ACTIONS AND ACTIVITIES BY THE LICENSEE; TO PROVIDE FOR THE MAINTENANCE AND INVESTIGATION OF BUSINESS RECORDS; TO REQUIRE A BIENNIAL INVESTIGATION OF BUSINESS RECORDS; TO PROHIBIT CERTAIN CONDUCT BY LICENSEES; TO PROVIDE FOR THE DENIAL, SUSPENSION AND REVOCATION OF LICENSES; TO PROVIDE FOR THE PROMULGATION OF RULES AND REGULATIONS BY THE DEPARTMENT; TO PROVIDE FOR ENFORCEMENT OF THIS ACT; TO PRESCRIBE PENALTIES FOR VIOLATIONS OF THIS ACT.

Where can I obtain a copy of the MISSISSIPPI MORTGAGE CONSUMER PROTECTION LAW?
It can be obtained from this web site by clicking on "Mississippi Mortgage Consumer Protection Law – effective April 20, 2004" or by contacting the Department at 1-800-844-2499 and a copy will be mailed for a nominal fee.

Who must be licensed or registered?
Unless exempt, as stated in the law, any person who engages in residential mortgage lending activity in connection with residential real estate located in Mississippi , must obtain a mortgage company license or register as an originator. This includes both first and second mortgage loans on residential property. Commercial mortgages are not regulated at this time.

Who is exempt from licensure or partially exempt from licensure?
There are several. They are detailed in Section 81-18-5, MS Code of 1972, Annotated. The following are the major exemptions or partial exemptions:

Any person authorized to engage in business as a bank holding company, any person authorized to engage in business as a financial holding company, bank, credit card bank, savings bank, savings institution, savings and loan association, building and loan association, trust company or credit union under the laws of the United States, any state or territory of the United States, or the District of Columbia, the deposits of which are federally insured, or any wholly owned subsidiary thereof are totally exempt from the MMCPL.

Wholly owned subsidiaries of a financial holding company or a bank holding company are exempt from the Mississippi Mortgage Consumer Protection Law; however, must file a “Notification Statement” with the Department before operating in the state of Mississippi . This notification statement may be obtained from this web site or by contacting the Department at 1-800-844-2499. Subsidiaries that are not wholly owned or affiliates are NOT included in the exemption.

Any person who is a wholesale lender as defined in the Law, or who is registered by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association or the United States Department of Housing and Urban Development must be registered with the Department by a registration certificate. These companies, however, will be subject to Sections 81-18-11, 81-18-13, 81-18-17, 81-18-21, 81-18-25, 81-18-27, 81-18-31, 81-18-33, 81-18-35, 81-18-39 and 81-18-43.

Any lender holding a license under the Small Loan Regulatory Law (Section 75-67-101 et seq.), and the Small Loan Privilege Tax Law, and making real estate loans under that law is exempt from this act. However, those lenders holding these licenses and making real estate loans outside that law shall be subject to the entire provisions of this law, unless otherwise exempted under MMCPL.

Nonprofit corporations exempt from federal taxation under Section 501(c) of the Internal Revenue Code making mortgage loans to promote home ownership or home improvements for the disadvantaged.

Any person who is employed by and representing a Mississippi manufactured housing operation and who makes a mortgage loan for an investment or on a whole loan basis and/or any person who engages in owner financing or engaged in the financing of a consumer loan secured by a mortgage on residential immovable property in not more than twelve (12) Mississippi residential mortgage loans, or who contracts for no more than twelve (12) Mississippi residential loan transactions, over the licensing period provided in the act, including those acting as loan originators. Although exempt from being licensed, these transactions must be submitted to the Commissioner on a department form along with a fee of $10.00 per transaction and must be in compliance with all applicable state and federal laws. This form may be downloaded from this web site or by contacting the department at 1-800-844-2499.

If my company holds a registration (exemption) certificate with the Department, due I have to register my loan originators?
Yes, as of April 20, 2004, regular licensed companies and companies holding registration (exemption) certificates must register all loan originators who meet the definition in the law. However, if the registered (exempt) company held a registration (exemption) certificate prior to April 20, 2004, then Commissioner Allison has deemed that loan originators for these companies only do not have to become registered until the end of the 2003 licensing year, September 30, 2004, for the next licensing period, beginning October 1, 2004.

If my company holds a registration (exemption) certificate with the Department, do I have to register my branches?
Yes, as of April 20, 2004, companies holding registration (exemption) certificates do have to register all in state and out of state branches if they conduct business on Mississippi residential property.

If my company only services mortgage loans on Mississippi residential property, do I have to get a license?
YES, according to the definition of a wholesale lender, if a company only services mortgage loans, they must apply for an registration (exemption) certificate outlined in Section 81-81-5(c), MS Code of 1972, Annotated.

If my company only wants to make one loan in Mississippi , can I get an exemption?
No, the MMCPLA does not provide for a deminimus provision. If a company wants to make one loan on Mississippi residential property, then the company must be licensed or qualify for an exemption outlined in the MMCPL.

What are the MMCPL licensure qualification requirements?
Refer to the Applications available on the web site for specific requirements.

What is required to be eligible for licensing for a regular mortgage license?
The following:

Documentation of a minimum of two (2) years' experience directly in mortgage lending by a person (individual, sole proprietor, or partner of partnership) or at least one (1) executive officer of a corporation, limited liability corporation or a trust. In lieu of this experience, documentation of passage of an examination covering mortgage lending, which has been approved by the Department of Banking and Consumer Finance, will be accepted.

A surety bond, made payable to the State of Mississippi , in the amount set forth in Section 81-18-11, MS Code of 1972, Annotated, from an insurance company authorized to conduct business in Mississippi .

The department shall not issue a license or registration certificate if it finds that the applicant, or any person who is a director, officer, partner, or principal of the applicant, has been convicted within ten (10) years of the application for license or registration of a felony in any jurisdiction or has been convicted of a misdemeanor in any jurisdiction in which fraud is an essential element, including, but not limited to, forgery, bribery, embezzlement or making a fraudulent or false statement.

The location of the mortgage company in the state of Mississippi must comply with the office requirements outlined in Section 81-18-25, MS Code of 1972, and Annotated.

What are originator registration qualification requirements?
Must be employed by a single Mississippi licensed or registered mortgage company. A loan originator CANNOT work for more than one mortgage company at the same time.

There are no initial education requirements to become a registered loan originator. For renewals, each loan originator must furnish evidence of 12 hours of continuing education per year. A listing of approved continuing education courses is available on this web site

The department shall not issue a registration certificate if it finds that the applicant has been convicted within ten (10) years of the application for registration of a felony or a misdemeanor in which fraud is an essential element, including, but not limited to, forgery, bribery, embezzlement or making a fraudulent or false statement.

What are the approved testing administrators to qualify for 2 year experience waiver?

Approved Administrators of testing for waiver of 2 years' experience:

Mortgage Research, Inc.
http://mortgage-education.com
2959 Cherokee Street, Suite 202
Kennesaw , GA 30144
Contact: Dan Johnson or anyone on the staff
Phone: 1-888-557-6770; Fax: 770-792-6775

Where or who do I contact for continuing education information?
There is a listing of approved continuing education providers located separately on this web site ONLY these providers are approved for continuing education purposes.

Can a mortgage company or sole proprietorship employ unregistered originator(s)?
No. Any employee acting within the jurisdiction of the definition of a loan originator must be registered as an originator.

Can an "originator" be an employed by more than one mortgage company?
No. An originator cannot be employed by more than one Mississippi licensed or registered mortgage company. If he/she is working for more than one company, he/she is considered brokering and must obtain a residential mortgage company license.

Must there be a registered originator at each location where residential mortgage lending activity is conducted?
Yes. Every person originating loans from a location must be registered or licensed under the MMCPL and must have previously stated on the registration application that they will be originating loans from that location. No one is permitted to originate loans from a location other than the one(s) registered, including the person's home.

As a loan originator, can I work from my house?
No, you may only work from a licensed location of the mortgage company. To do this will cause your license to be voided by the Department.

How long does it take to process an application?
The Department will issue or deny a license within 15 days of receipt of a COMPLETED application, FINAL VERIFICATION from the Department of Public Safety and the FBI, and payment of licensing fees.

What does a MMCPL license or originator registration cost?

• $750 for new license application fee
• $475 for annual license renewal
• $100 initial registration for each additional office and $25 annual renewal
• $100 for new originator license and $50 annual renewal
• $300 for initial exemption certificate and $150 for annual renewal
• $100 for initial notification statement and $100 for annual renewal
• $750 for change of ownership over 25% - does not apply to registered (exempt) companies
• $ 25 for change of address, change of name, duplicate license

When do the license and registration expire?
Licenses and exemption certificates expire on September 30 of the year immediately following the year issued or filed. The renewal application and fee are due on or before September 30 to avoid late penalties. Loan originator registrations expire on September 30 of the year immediately following the year issued or filed.

What if renewal applications and fees are submitted late?
Annual license/registration renewal applications and fees are considered late if not received by the Department on or before September 30. A late fee of $25 per day is assessed, as well as the renewal price of the license/registration increasing to the initial amount of the license/registration.

Do I have to renew the company's branch licenses?
Yes, as of April 20, 2004, all branch licenses must be renewed with the company's license or registration (exemption) certificate, as well as loan originator's registrations.

When will I receive the renewal forms for the licenses?
These forms are mailed to the licensing contact of the company on file with the Department in mid to late July.

Is my license transferable to someone else?
No license shall be sold or otherwise transferred. No person shall acquire or control a license to make or broker residential mortgage loans through the acquisition or control of twenty-five percent or more of the ownership interest in a licensee without first following the requirements set in Section 81-18-19, MS Code of 1972, and Annotated.

What if an originator receives a Form 1099 for services rendered and not a W-2?
Anyone receiving a Form 1099 from a licensed mortgage company and provides a service to only one mortgage company is considered an exclusive agent and requires an originator's license. Anyone meeting the definition of an originator except that they provide origination services to more than one person shall be deemed to be acting as a mortgage company and must be licensed as such.

What kind of license do I need if I only broker loans?
A mortgage company license is required if the person is engaging in residential mortgage lending activity which includes brokering residential mortgage loans. The surety bond that must be on file defines the classes of companies, which are Mortgage Broker, Correspondent Lender, and Mortgage Lender.

If I operate only on the Internet, do I need a license?
Yes. The definition of residential mortgage lending activity includes electronic activity, engaged in for compensation, or with the expectation of compensation in connection with a residential loan transaction.

Can I co-broker loans with another Mississippi mortgage company?
Yes, according to Section 81-18-27(2), MS Code of 1972, Annotated, co-brokering is allowed provided that both companies are licensed, registered or are exempt from licensing in Mississippi as a mortgage company.

Can I pay someone a “finder's fee”?
According to Section 81-18-27(k), MS Code of 1972, Annotated, a company may not “pay to any person not licensed nor exempt any commission, bonus or fee in connection with arranging for or originating a mortgage loan for a borrower, except that a registered loan originator may be paid a bonus, commission or fee by his or her licensed employer.” A “finder's fee” may be paid to any person who is licensed, registered or exempt from the MMCPL.

Is there an audit or review?
Yes, the Department shall have the right to examine the books, accounts and records necessary to determine whether or not the licensee is in compliance with the MMCPL and to investigate complaints. The routine examination fee will be no less than $300 and no more than $600. Additional fees may be charged to companies for complaint investigations or for additional examinations, if warranted, due to numerous violations of State law or other egregious conduct.

Is there an in-state office requirement?
No. However, if the company does have a Mississippi office, it must meet the requirements outlined in Section 81-18-25, MS Code of 1972, and Annotated.

Are there any restrictions as to where business can be conducted?
Yes, there are restrictions including evidence that the location is in conformance with zoning. No mortgage company shall conduct residential mortgage lending activities under any name or from any location other than the one stated on its license.

Am I required to display my license at each location?
Yes. You will receive one license with the principal location address. You must pay a $100 fee for each branch location and prominently display a license at each branch office listed in your application. Also, each loan originator is required to prominently display his/her registration at the office location where he/she works.

Can I add or change locations? Can I change my name? If so, what are the fees?
A mortgage company who holds a mortgage license or registration certificate shall notify the commissioner of a change in the location or name of the business, or the addition of offices, in writing prior to the change. A filing fee of $25 shall accompany a Change of Address Application or Change of Name Application. For the addition of offices, a $100 fee is required, as well as completion of a Application for Branch Office. The application forms for making these additions/changes are located on this web site or may be obtained by calling 1-800-844-2499.