MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Banking and Financial Services
By: Representative Snowden
AN ACT TO AMEND SECTION 81-18-5, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM THE MISSISSIPPI S.A.F.E. MORTGAGE ACT SELLERS OF REAL PROPERTY WHO RECEIVE ONE OR MORE MORTGAGES OR DEEDS OF TRUST AS SECURITY FOR A PURCHASE MONEY OBLIGATION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 81-18-5, Mississippi Code of 1972, is amended as follows:
81-18-5. The following are exempt from the provisions of this chapter:
(a) Registered mortgage loan originators, when acting for an entity described in Section 81-18-3(gg).
(b) Any person who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.
(c) Any seller of real property who receives one or more mortgages or deeds of trust as security for a purchase money obligation.
(d) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of the lender, mortgage broker, or other mortgage loan originator.
(e) A depository institution, or a subsidiary that is owned and controlled by a depository institution, or an institution regulated by the Farm Credit Administration.
(f) Any mortgage lender who holds a valid license under the provisions of the Small Loan Regulatory Law, Section 75-67-101 et seq., and the Small Loan Privilege Tax Law, Section 75-67-201 et seq., and whose mortgage lending activities are limited solely to the servicing of mortgage loans that were in such mortgage lender's own loan portfolio as of December 31, 2009. For the purposes of the exemption in this paragraph (f), "servicing of mortgage loans" shall mean and include the collection of payments of principal and interest, insurance premiums, taxes and other payments required under such mortgage loans, and shall also include activities related to the collection of such payments such as collection calls whether by phone, mail, electronic means or in person, and enforcement remedies permitted by law or at equity. In no event shall the term "servicing of mortgage loans" include the renewal or reworking of the mortgage. If a mortgage loan is renewed or reworked, the lender shall be required to obtain a mortgage license in order to continue any mortgage activity described in this chapter.
SECTION 2. This act shall take effect and be in force from and after July 1, 2011.