North Dakota Modifies Provisions for Residential Mortgage Lenders Licensing

North Dakota recently enacted SB 2090 which modifies provisions applying to residential mortgage lenders.  Among other things, SB 2090 requires that any person that engages in mortgage lending to borrowers in North Dakota must obtain a Residential Mortgage Lender License.  The act also lists the types of individuals and entities that are exempt from this requirement.  Additionally, the North Dakota Department of Financial Institutions has increased the maximum civil money penalty from up to five thousand dollars for each occurrence to up to one hundred thousand dollars for each occurrence and an additional one thousand dollars per day for noncompliance for any person that violates a law, rule, written agreement or order under these provisions.  The act provides that lenders in possession of a valid state broker’s license as of August 1, 2023, are not required to obtain a residential mortgage lender’s license until December 31, 2023, however all other provisions of the Act are applicable to residential mortgage lenders as of August 1, 2023.