The bill introduced comprehensive provisions to enhance mortgage lending framework.
Enhanced consumer protections with mandates for brokers, banks, and servicers.
Introduced definitions for affiliate, authorized user, and covered institution servicer.
Exempt person to include certain government agencies and nonprofits organizations.
Bill improved security measures by requiring the use of multifactor authentication.
Also outlined comprehensive risk management and information security (IT) programs.
Each mortgage broker, banker, and servicer would be mandated to post a surety bond of no less than $100,000, in order to ensure faithful performance of their obligations.
To protect consumers but also ensure claims against licensees can be pursued directly.
With aim to streamline the processes for those affected by potential malpractices.
Allows for temporary suspensions of certain regulations for unforeseen severe events.
Legislative History
On Feb. 12, 2025, bill introduced in House; on Feb. 27, 2025, bill passed in House.
On Feb. 27, 2025, bill introduced to Senate; on Mar. 10, 2025, bill passed in Senate.
On Mar. 12, 2025, bill was approved by governor, and Bill HB 1466 became Act 262.
Effectiveness
Act effective 90 days after legislature adjourned sine die, so Aug. 5, 2025.
