MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Banks and Banking

By: Representative Ford

AN ACT TO REENACT SECTION 81-20-1, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES THE COMMISSIONER OF BANKING AND CONSUMER FINANCE TO INVESTIGATE COMPLAINTS AGAINST MORTGAGE COMPANIES; TO AMEND REENACTED SECTION 81-20-1, MISSISSIPPI CODE OF 1972, TO EXTEND THE REPEALER; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 81-20-1, Mississippi Code of 1972, is reenacted and amended as follows:

81-20-1. (1) For purposes of this section, the following terms shall have the following meanings:

(a) "Mortgage company" means any person or entity that directly or indirectly solicits, processes, places or negotiates mortgage loans for others, or offers to solicit, process, place or negotiate mortgage loans for others, or who closes mortgage loans, whether or not in the mortgage company's own name.

(b) "Mortgage loan" means a loan or agreement to extend credit made to a natural person, which loan is secured by a deed to secure debt, security deed, mortgage, security instrument, deed of trust or other document representing a security interest or loan upon any interest in a lot intended for residential purposes, or single- to four-family residential property located in Mississippi, regardless of where made, including the renewal or refinancing of any loan.

(c) "Residential property" means improved real property or lot used or occupied, or intended to be used or occupied, as a residence by a natural person.

(2) The Commissioner of Banking and Consumer Finance is authorized to investigate and resolve consumer complaints and disputes against mortgage companies. The commissioner or his duly authorized representative, for the purpose of resolving any consumer complaint or dispute against a mortgage company, may examine the mortgage company and all relevant books, records and papers employed by the mortgage company in the transaction of its business, and may summon witnesses and examine them under oath concerning matters relating to the business of the mortgage company or such other matters as may be relevant to resolving the consumer complaint or dispute against the mortgage company.

(3) This section shall stand repealed on July 1, 2001.

SECTION 2. This act shall take effect and be in force from and after July 1, 2000.