SLS 12RS-740 ORIGINAL
Page 1 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 380
BY SENATOR BROOME
FINANCIAL INSTITUTIONS. Provides for the regulation of mortgage service companies
and for funding. (8/1/12)
AN ACT1
To enact Part IV of Chapter 2 of Title 6 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 6:151 through 153, relative to mortgage service companies; to3
provide for the registration of mortgage service companies doing business in the4
state; to provide for definitions; to provide for required annual continuing education;5
to create and provide for a fund; to provide a source of monies in the fund and for6
use and investment of monies in the fund; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Part IV of Chapter 2 of Title 6 of the Louisiana Revised Statutes of 1950,9
comprised of R.S. 6:151 through 153, is hereby enacted to read as follows: 10
PART IV. MORTGAGE SERVICE COMPANIES11
§151. Definitions12
For purposes of this Part, the following terms shall have the meanings13
specified in this Section:14
(1) "Commissioner" means the commissioner of financial institutions.15
(2) "Mortgage loan" means a loan secured by a lien or mortgage on a16
single family residential immovable property.17 SB NO. 380
SLS 12RS-740 ORIGINAL
Page 2 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(3) "Mortgage service company" means a company that services the1
daily maintenance of a mortgage loan. "Mortgage service company" shall also2
include any company or person who uses any instrumentality of intrastate or3
interstate commerce or the mails in any business the principal purpose of which4
is to service the daily maintenance of a mortgage loan in Louisiana,5
notwithstanding the fact that such company or person has no employees, offices,6
equipment, or other physical facilities in this state.7
§152. Mortgage service companies; registration8
A. Any mortgage service company doing business in Louisiana or which9
seeks to do business in this state shall register with the Office of Financial10
Institutions. The commissioner shall promulgate rules and regulations11
necessary to provide for the registration required by this Part.12
B. As part of the registration process, the commissioner shall require13
industry-based credentials certifying the company or person's competency to14
act as a mortgage service company.15
C. The commissioner shall establish an annual continuing education16
requirement for all employees of a mortgage service company, requiring for17
each employee a minimum of four hours of annual continuing education credit18
related to the administration of mortgage loans and professionalism in19
consumer relations.20
D. The commissioner shall establish a program designed to improve the21
professionalism of the mortgage service industry.22
§153. Professionalism in Consumer Relations Fund23
A. There is hereby established in the state treasury a special fund to be24
known as the Professionalism in Consumer Relations Fund, hereinafter referred25
to as the "fund". The fund shall be comprised of a portion of the proceeds26
recovered by the attorney general on behalf of the state from claims involved27
in the National Mortgage Settlement.28
B. After satisfying the requirements of the Bond Security and29 SB NO. 380
SLS 12RS-740 ORIGINAL
Page 3 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Redemption Fund as provided in Article VII, Section 9(B) of the Constitution1
of Louisiana, the treasurer shall pay into the fund an amount appropriated by2
the legislature from the proceeds provided in Subsection A of this Section.3
C. The monies in the fund shall be annually appropriated to the Office4
of Financial Institutions solely for the purposes of defraying the costs of5
improving the professionalism of the mortgage service industry, as provided in6
R.S. 6:152.7
D. All unexpended and unencumbered monies in the fund at the end of8
a fiscal year shall remain in the fund. Monies in the fund shall be invested by9
the treasurer in the same manner as those in the state general fund, and any10
interest earned on such investment shall be deposited in and credited to the11
state general fund.12
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Thomas F. Wade.
DIGEST
Proposed law requires the registration with the Office of Financial Institutions of mortgage
service companies. Defines a mortgage service company as a company that services the daily
maintenance of a mortgage loan. Also includes any company or person who uses any
instrumentality of intrastate or interstate commerce or the mails in any business the principal
purpose of which is to service the daily maintenance of a mortgage loan in Louisiana,
notwithstanding the fact that such company or person has no employees, offices, equipment,
or other physical facilities in this state.
Proposed law requires industry-based credentials certifying the company or person's
competency to act as a mortgage service company. Requires that the commissioner establish
an annual continuing education requirement for all employees of a mortgage service
company, requiring a minimum of four hours of annual continuing education credit related
to the administration of mortgage loans and professionalism in consumer relations. Also
requires the commissioner to establish a program designed to improve the professionalism
of the mortgage service industry.
Proposed law establishes in the state treasury a special fund to be known as the
Professionalism in Consumer Relations Fund, comprised of a portion of the proceeds
recovered by the attorney general on behalf of the state from claims involved in the National
Mortgage Settlement. Requires the treasurer to pay into the fund an amount appropriated by
the legislature from the settlement proceeds. Provides that monies in the fund shall be
annually appropriated to the Office of Financial Institutions solely for the purposes of
defraying the costs of improving the professionalism of the mortgage service industry.
Provides that all unexpended and unencumbered monies in the fund at the end of each fiscal
year shall remain in the fund. Provides for investment of monies in the fund by the treasurer
in the same manner as those in the state general fund, and provides for crediting of any
interest earned on such investment to the state general fund. SB NO. 380
SLS 12RS-740 ORIGINAL
Page 4 of 4
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Effective August 1, 2012.
(Adds R.S. 6:151 - 153)