New Hampshire Amends Provisions Regarding Mortgage Exemptions

The state of New Hampshire recently amended its laws regarding the licensing of nondepository mortgage bankers, brokers, and servicers to provide for a new exemption for certain second mortgage loans funded by exempt state entities.  House Bill 740 adds a new subsection which exempts second mortgage loans from such laws when a second mortgage loan is: (i) offered in conjunction with a first mortgage loan funded by an exempt state entity; and (ii) “negotiated, arranged, found, or procured through a licensed loan originator”—who is not employed by the exempt state entity—in association with the first mortgage.  In order to qualify for this exemption, a second mortgage must be offered in a manner consistent with the standards with regard to operations of exempt state entities, and the licensed loan originator must not have been compensated for the second mortgage in a way that incentivized him or her to act against the consumer’s best interest.

The bill also makes a minor wording change to the introductory paragraph of the exemption section at issue above.

These provisions took effect on June 5, 2019.