Wyoming - Mortgage regulations head to Senate

Associated Press

CHEYENNE -- Proposed regulations on the residential mortgage industry are moving through the Legislature.

The Senate Minerals, Business and Economic Development Committee voted 5-0 Monday to advance Senate File 13 to the full Senate, the Wyoming Tribune-Eagle reports.

The bill would impose "top down" licensing on the residential mortgage industry, where the board and senior executives would be held responsible for the actions of their employees.

The bill spells out the types of disclosures that must be made to borrowers and explains what powers the state Division of Banking has to enforce the act.

Banking Division Director Jeff Vogel said the bill also would impose regulation on mortgage lenders who seek out customers via e-mail. If they want to do business with Wyoming residents, for example, they would have to be licensed in the state.

Most other states regulate residential mortgage lenders, he said.

Vogel said problems in the industry are widespread. "The state of Kansas had a lender take loan application fees from prospective borrowers. The lender collected $1.6 million in applications fees upfront and made three loans," he said.

The bill comes with a request for two more employees.