Consumer finance bill approved

Senators passed a bill March 30 that updates and amends the state’s consumer finance laws.

LB965, introduced by Boys Town Sen. Rich Pahls at the request of the state Department of Banking and Finance, makes changes to the Nebraska Installment Sales Act (NISA), the Residential Mortgage Licensing Act (RMLA) and the Nebraska Installment Loan Act (NILA).

Among the provisions, the bill:
• amends NISA to transition the current manual licensing process for installment sales companies onto the electronic Nationwide Mortgage Licensing System and Registry (NMLSR);
• allows a licensee to move its place of business anywhere without having to apply for a new license;
• brings the RMLA into compliance with new federal guidelines related to mortgage bankers and loan originators;
• authorizes the department to grant a certificate of exemption to a nonprofit organization that promotes affordable housing or provides homeownership education;
• authorizes the department to issue a mortgage loan originator license to a person who has had certain misdemeanors or any felony expunged from the record;
• allows the department to issue an emergency order to suspend, limit or restrict a mortgage license under specific circumstances; and
• amends NILA to include other state-regulated financial services entities and industries in the definition of NMLSR.

The bill passed on a 43-1 vote.