North Dakota Senate Bill SB2090

North Dakota 2023-2024 Regular Session

• Introduced: 1/3/23
• Refer: 1/3/23
• Report Pass: 1/6/23
• Engrossed: 1/9/23
• Refer: 2/16/23
• Report Pass: 3/3/23
• Enrolled: 3/7/23
• Passed: 3/15/23

Caption

Call reports; to provide a penalty; and to provide for application.

Impact

The implementation of SB 2090 will significantly affect state laws governing mortgage lending. It categorically requires that all lenders be licensed and imposes strict penalties for violations. By amending existing sections of law that pertain to money brokers and mortgage lenders, the bill creates an integrated regulatory framework enhancing the oversight of mortgage lending activities. This is expected to lead to better consumer protection and a more competitive lending environment within the state as it seeks to mitigate the risks associated with unregulated lending practices.

Summary

Senate Bill No. 2090 aims to create new regulations and amend existing laws concerning residential mortgage lenders in North Dakota. This bill establishes a new chapter in the North Dakota Century Code that requires all residential mortgage lenders to obtain licensure through the Department of Financial Institutions. By doing so, it seeks to create a more uniform regulatory framework to ensure that consumers are protected and that lending practices are fair and transparent. The bill prohibits unfair practices and sets standards for interest rates and fees associated with loans, thereby aiming to safeguard borrowers from potentially predatory lending practices.

Sentiment

The sentiment surrounding SB 2090 seems to be largely positive among lawmakers and consumer advocacy groups who view it as a necessary reform in the wake of past abuses in the mortgage lending industry. Supporters argue that by placing more stringent regulatory requirements on lenders, the bill will better protect consumers and lead to increased confidence in the lending industry. However, there may be opposition from some business interests who fear that the increased regulatory burden may stifle competition or raise costs associated with obtaining loans.

Contention

Some notable points of contention include the potential for the bill to limit the availability of credit for certain borrowers. Critics argue that while consumer protections are essential, stringent regulations may make it more difficult for less conventional borrowers to secure loans. Additionally, the bill's enforcement mechanisms, including heavy penalties for non-compliance, raise concerns about potentially punitive effects on smaller lenders who may struggle to meet the new regulatory expectations.