COMMITTEE ON COMMERCE
HOUSE OF REPRESENTATIVES AMENDMENTS TO S.B. 1204
(Reference to Senate engrossed bill)
Page 1, between lines 1 and 2, insert:
"Section 1. Section 6-901, Arizona Revised Statutes, is amended to read:
6-901. Definitions
In this article, unless the context otherwise requires:
1. "Affiliate" means an entity which directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the entity specified.
2. "Commercial mortgage broker" means a person who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a commercial mortgage loan.
3. "Commercial mortgage loan" means a loan that is directly or indirectly secured by a mortgage or deed of trust or any lien interest on commercial property and that is created with the consent of the owner of the commercial property.
4. "Commercial property" means real property that is not a residential dwelling of one to four units.
5. "Compensation" means anything of value or any benefit, including points, commissions, bonuses, referral fees, loan origination fees and other similar fees but excluding periodic interest resulting from the application of the note rate of interest to the outstanding principal balance remaining unpaid from time to time.
6. "Continuing education unit" means a fifty minute period of time in a continuing education course that relates to the mortgage industry or to mortgage transactions, including courses taken to maintain recognized industry designations.
7. “Generally accepted accounting principles” means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board.
7. 8. "Investor" means a person who lends or invests money in mortgage loans.
8. 9. "License" means a license issued under this article.
9. 10. "Licensee" means a person licensed under this article.
10. 11. "Loan originator" has the same meaning prescribed in section 6-991.
11. 12. "Mortgage broker" means a person who is not exempt under section 6-902 and who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage loan.
12. 13. "Mortgage loan" means a loan secured by a mortgage or deed of trust or any lien interest on real estate located in this state created with the consent of the owner of the real estate.
13. 14. "Mortgage loan closing" means the day by which all documents relating to the mortgage loan have been executed and recorded and all monies have been accounted for under the terms of the escrow instructions.
14. 15. "Residential mortgage loan" means a mortgage loan that has security in the form of a residential dwelling of one to four units."
Renumber to conform
Page 3, line 16, after "person" insert "or an employee of an affiliated entity or the parent company of the licensee"
Line 21, after "licensee" strike remainder of line
Line 22, strike "the licensee"
Page 6, between lines 30 and 31, insert:
"Sec. 4. Section 6-941, Arizona Revised Statutes, is amended to read:
6-941. Definitions
In this article, unless the context otherwise requires:
1. "Affiliate" means an entity which directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the entity specified.
2. "Compensation" means anything of value or any benefit including points, commissions, bonuses, referral fees, loan origination fees and other similar fees but excluding periodic interest resulting from the application of the note rate of interest to the outstanding principal balance remaining unpaid from time to time.
3. “Generally accepted accounting principles” means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board.
3. 4. "License" means a license issued under this article.
4. 5. "Licensee" means a person licensed under this article.
5. 6. "Mortgage banker" means a person who is not exempt under section 6-942 and who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage banking loan or a mortgage loan.
6. 7. "Mortgage banking loan" means a loan which is funded exclusively from the mortgage banker's own resources, which is directly or indirectly secured by a mortgage or deed of trust or any lien interest on real estate located in this state and which is created with the consent of the owner of the real property. For the purposes of this paragraph, "own resources" means any of the following:
(a) Cash, corporate capital, warehouse credit lines at commercial banks, savings banks or savings and loan associations or other sources that are liability items on the mortgage banker's financial statements for which its assets are pledged.
(b) Correspondent contracts between the mortgage banker and a bank, savings bank, trust company, savings and loan association, credit union, profit sharing or pension trust, consumer lender or insurance company.
(c) The mortgage banker's affiliates' cash, corporate capital, warehouse credit lines at commercial banks or other sources that are liability items on the affiliates' financial statements for which the affiliates' assets are pledged.
7. 8. "Mortgage banking loan closing" means the day by which all documents relating to the mortgage banking loan or mortgage loan have been executed and recorded and all monies have been accounted for.
8. 9. "Mortgage loan" means any loan, other than a mortgage banking loan, secured by a mortgage or deed of trust or any lien interest on real estate located in this state and created with the consent of the owner of the real estate."
Sec. 5. Section 6-971, Arizona Revised Statutes, is amended to read:
6-971. Definitions
In this article, unless the context otherwise requires:
1. "Affiliate" means an entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the specified entity.
2. "Commercial mortgage banker" means a person who engages in the following:
(a) Originating commercial mortgage loans.
(b) Servicing commercial mortgage loans.
(c) Either directly or indirectly making, negotiating or offering to make or negotiate commercial mortgage loans.
3. "Commercial mortgage loan" means a loan that is directly or indirectly secured by a mortgage or deed of trust or any lien interest on commercial property and created with the consent of the owner of the commercial property.
4. "Commercial mortgage loan closing" means the day by which all documents relating to the commercial mortgage loan have been executed and recorded and all monies have been accounted for under the terms of the escrow instructions.
5. "Commercial property" means real estate that is located in this state and that is not used for a one to four family residence.
6. "Compensation" means anything of value or any benefit including points, commissions, bonuses, referral fees, loan origination fees and other similar fees but excluding periodic interest resulting from the application of the note rate of interest to the outstanding principal balance remaining unpaid from time to time.
7. “Generally accepted accounting principles” means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board.
7. 8. "Institutional investor" means a person who in the regular course of business makes commercial mortgage loans of more than two hundred fifty thousand dollars that are funded exclusively from the institutional investor's own resources.
8. 9. "Investor" means a person who directly or indirectly provides monies to a commercial mortgage banker that are, or are intended to be, used to make a loan, and any person who purchases a loan, or any interest in a loan, from a commercial mortgage banker or in a transaction that has been directly or indirectly arranged or negotiated by a commercial mortgage banker.
9. 10. "License" means a license issued under this article.
10. 11. "Licensee" means a person who is licensed under this article.
11. 12. "Own resources" means any of the following:
(a) Cash, corporate capital, warehouse credit lines at commercial banks, savings banks or savings and loan associations or other sources that are liability items on the person's financial statements.
(b) Correspondent contracts between the commercial mortgage banker and an institutional investor, bank, savings bank, trust company, savings and loan association, credit union, profit sharing or pension trust, consumer lender or insurance company.
(c) The person's affiliates' cash, corporate capital, warehouse credit lines at commercial banks or other sources that are liability items on the affiliates' financial statements for which the affiliates' assets are pledged.
12. 13. "Servicing commercial mortgage loans" means collecting payments at a location in this state on commercial mortgage loans, including:
(a) Principal.
(b) Interest.
(c) Trust items such as hazard insurance premiums, taxes and various reserves on an obligation under the terms of the obligation.
(d) Operational procedures covering accounting, bookkeeping, insurance, tax records, loan payment follow-up, delinquency loan follow-up, loan analysis and property valuation."
Renumber to conform
Page 6, line 37, after "person" insert "or an employee of an affiliated entity or the parent company of the licensee"
Line 40, after "licensee" strike remainder of line
Line 41, strike "the licensee"
Amend title to conform