Mortgage License Mall Newsletter VI

Add-A-State@Mortgage License Mall
http://www.thomas-law.com

presents
a Free Mortgage License Newsletter VOL. VI (9/4/2000)
containing Recent Developments of Mortgage Licenses in the 50 states
Providing mortgage professionals with FREE access to cost saving prospecting, officing, communications, origination and processing tools. Offering mortgage brokers and originators point-of-sale loan selection and conditional approval tools.

This Edition features: Mortgage Broker/Lender News Headlines as of 9/4/2000 ( click headline for explanation) for the following states:

MISSISSIPPI MORTGAGE CONSUMER
PROTECTION ACT (MMCPA) was signed by Governor Musgrove on May 22, 2000 to become effective and in force from and after July 1, 2000. Who must be licensed or registered? Unless exempt, as stated in the law, any person who engages in residential mortgage lending activity in connection with real estate located in Mississippi, must obtain a mortgage company license or register as an originator.
MISSISSIPPI DEPT OF BANKING AND CONSUMER FINANCE
Mailing address: P. O. Drawer 23729, Jackson, MS 39225-3729
Street address: 550 High Street Suite 304, Jackson, MS 39202
Phone numbers: 601-359-1031, 601-359-3557 (Fax)
1-800-844-2499 (WATS - Incoming USA)If you have any questions please send us an email at jallison@dbcf.state.ms.us

Advantages of Add-A-State Services:

Experience
Speed
Low Costs
Prompt Responses to State Agencies
Reduced Risk of Rejection
Professionalism
Automation
Integrity
Discounts

Practical Effect of HUD Exemptions in OH and LA: Each of the state agencies in OH and LA interpret the HUD exemption to the OH Mortgage Broker License Act (which covers mortgage brokers and lenders who broker or make 1st mortgage loans in OH) and the LA Residential Mortage Lender Act (which covers LA mortgage brokers and lenders) as requiring a geographical location in the state approved by HUD in order to qualify for the exemption. A nonsupervised mortgagee must have an office within 200 miles in order to qualify for HUD to approve the geographical location. Consequently, the attempt to qualify for the HUD exemption in each state would require a physical office in the state which most mortgage companies are trying to avoid.
Solution: OH: if you broker or make both 1st and 2nd mortgages you can apply for a license under the OH Mortgage Loan Act that does not require a physical location (note: the other license, i.e., OH Mortgage Broker Act now requires a physical location in OH)
Solution: LA: Apply for a license under the LA Residential Mortage Lender Act (which covers LA mortgage brokers and lenders) because it does not require a physical office in LA.

How Do I Get Started? Complete and Fax to 214-692-7613 Purchase Order then Overnight Mail Hardcopy of Purchase Order and Check for 33% of Purchase Order Total to Thomas Law Firm, P.C., 6116 N. Central Expressway, Suite 922, Dallas, TX 75206
Who Can I Talk To About My Purchase Order? Call Herb Thomas at 214-692-7611

Wholesale Lenders Exemptions in AZ and NV: Both AZ and NV are outstanding states to lend in but difficult states to get licensed in for 2 reasons: (1) the physical location requirement and (2) the branch manager with experience (2 yrs NV and 3 yrs AZ) requirement
Solution: If you are a wholesale lender, there exists Wholesale lender exemptions in both NV and AZ that may meet you needs. Call Herb Thomas at 214-692-7611 if you wish further explanation.
Solution: NV has an exemption for mortgage companies with (1) HUD approval (2) VA approval AND (3) Fannie Mae approval.
Solution: AZ: With Banking Department knowledge, licensed AZ mortgage brokers will act as your Responsible Individual for a flat fee per month. This is a good temporary solution until you can set up your own AZ office.

Where Can I Find More Information on Mortgage Broker and Mortgage Lender Licenses in the 50 States? @ Mortgage License Mall
National 50 State Licensing Strategy
No Physical Location States
Physical Office Solutions
ON-LINE DISCOUNT MTG. BROKERS= Lastest Trend Is Sweeping The Industry
No License States/ Exempt as FHA lender

The practical effect of the WV HUD exemption: The HUD exemption for lenders in WV has been interpreted narrowly to mean that a mortgage company is exempt from obtaining the NEW WV Mortgage Lender License only if the ONLY loans they make are HUD loans. NEW ACT
Solution: Apply for the NEW WV Mortgage Lender License (no physical location is required)

Fees-Bonds-Net Worth Requirements
Texas Mortgage Loan License Page
BEST 1998 MORTGAGE MARKETS
Approved Local Counsel
About Thomas Law Firm

State Agency Confirmation Letters (Our Fee: $100 per letter prepared on your letterhead):
Non-supervised Mortgagees (8 Letters): Bolster the value and effect of your HUD approval in the states that are Self-executing (NC, AL, TX, MO, OK, MS, KY, HI)
No License States (Lenders: IN, SC, CO, AK, MT, WY) (6 Letters)
Total For Lenders: 14 Letters or $1400
Benefits: State Agency Confirmation Letters give notice to the sate that you will be doing business in their state and requests confirmation on state agency letterhead that you are not reqired to btain a mortage license in their state. Normal response is about 60-75%. This alternative is much cheaper than confirmation via an Opinion of Counsel in each state that could cost as much as $3000 each.
HUD Registrations: Registrations mustt be filed in TN and AR in order to qualify for the HUD Exemption (Our Fee: $300 per Registration to prepare and file
TOTAL FOR 14 LETTERS AND 2 REGISTRATIONS: $2000

Net Branch Candidates
Representative Clients
PREVIOUS JOKES-OF-THE-DAY
REGARDING TEXAS HOME EQUITY LOANS

Hawaii: Trap For the Unwary: When most lenders become national lenders they will hire CT Corporation or CSC (US Corporation Company) to qualify them in all 50 states to do business as a foreign corporation. BEWARE IF YOU ARE A HUD APPROVED LENDER desiring to do business in Hawaii and be exempt from its mortgage licensing laws via your HUD Approval. Jan Yamone, Div. of Financial Institutions, Department of Commerce and Consumer Affairs
1010 Richards Street, Room 602-A, Honolulu, HI 96813, Phone: (808)586-2820, Fax: (808) 586-2818 said that its is imperative that a mortgage company NOT file to do business in HI as a foreign corporation or it will not qualify as the "foreign lender" exemption.

THOMAS LAW FIRM, P.C.
8080 NORTH CENTRAL EXPRESSWAY
SUITE 890
DALLAS, TEXAS 75206
214.692.7611 (VOICE) OR 692-7613 (FAX)

Not Certified by the Texas Board of Legal Specialization but licensed to practice in all areas of the law

Add-A-State@Mortgage License Mall http://www.thomas-law.com
presents a Free Mortgage License Newsletter VOL. VI (9/4/2000) containing Recent Developments of Mortgage Licenses in the 50 states	Providing mortgage professionals with FREE access to cost saving prospecting, officing, communications, origination and processing tools. Offering mortgage brokers and originators point-of-sale loan selection and conditional approval tools.
This Edition features: Mortgage Broker/Lender News Headlines as of 9/4/2000 ( click headline for explanation) for the following states:
MISSISSIPPI MORTGAGE CONSUMER PROTECTION ACT (MMCPA) was signed by Governor Musgrove on May 22, 2000 to become effective and in force from and after July 1, 2000. Who must be licensed or registered? Unless exempt, as stated in the law, any person who engages in residential mortgage lending activity in connection with real estate located in Mississippi, must obtain a mortgage company license or register as an originator. MISSISSIPPI DEPT OF BANKING AND CONSUMER FINANCE Mailing address: P. O. Drawer 23729, Jackson, MS 39225-3729 Street address: 550 High Street Suite 304, Jackson, MS 39202 Phone numbers: 601-359-1031, 601-359-3557 (Fax) 1-800-844-2499 (WATS - Incoming USA)If you have any questions please send us an email at jallison@dbcf.state.ms.us	Advantages of Add-A-State Services: Experience Speed Low Costs Prompt Responses to State Agencies Reduced Risk of Rejection Professionalism Automation Integrity Discounts
Practical Effect of HUD Exemptions in OH and LA: Each of the state agencies in OH and LA interpret the HUD exemption to the OH Mortgage Broker License Act (which covers mortgage brokers and lenders who broker or make 1st mortgage loans in OH) and the LA Residential Mortage Lender Act (which covers LA mortgage brokers and lenders) as requiring a geographical location in the state approved by HUD in order to qualify for the exemption. A nonsupervised mortgagee must have an office within 200 miles in order to qualify for HUD to approve the geographical location. Consequently, the attempt to qualify for the HUD exemption in each state would require a physical office in the state which most mortgage companies are trying to avoid. Solution: OH: if you broker or make both 1st and 2nd mortgages you can apply for a license under the OH Mortgage Loan Act that does not require a physical location (note: the other license, i.e., OH Mortgage Broker Act now requires a physical location in OH) Solution: LA: Apply for a license under the LA Residential Mortage Lender Act (which covers LA mortgage brokers and lenders) because it does not require a physical office in LA.	How Do I Get Started? Complete and Fax to 214-692-7613 Purchase Order then Overnight Mail Hardcopy of Purchase Order and Check for 33% of Purchase Order Total to Thomas Law Firm, P.C., 6116 N. Central Expressway, Suite 922, Dallas, TX 75206 Who Can I Talk To About My Purchase Order? Call Herb Thomas at 214-692-7611
Wholesale Lenders Exemptions in AZ and NV: Both AZ and NV are outstanding states to lend in but difficult states to get licensed in for 2 reasons: (1) the physical location requirement and (2) the branch manager with experience (2 yrs NV and 3 yrs AZ) requirement Solution: If you are a wholesale lender, there exists Wholesale lender exemptions in both NV and AZ that may meet you needs. Call Herb Thomas at 214-692-7611 if you wish further explanation. Solution: NV has an exemption for mortgage companies with (1) HUD approval (2) VA approval AND (3) Fannie Mae approval. Solution: AZ: With Banking Department knowledge, licensed AZ mortgage brokers will act as your Responsible Individual for a flat fee per month. This is a good temporary solution until you can set up your own AZ office.	Where Can I Find More Information on Mortgage Broker and Mortgage Lender Licenses in the 50 States? @ Mortgage License Mall National 50 State Licensing Strategy No Physical Location States Physical Office Solutions ON-LINE DISCOUNT MTG. BROKERS= Lastest Trend Is Sweeping The Industry No License States/ Exempt as FHA lender
The practical effect of the WV HUD exemption: The HUD exemption for lenders in WV has been interpreted narrowly to mean that a mortgage company is exempt from obtaining the NEW WV Mortgage Lender License only if the ONLY loans they make are HUD loans. NEW ACT Solution: Apply for the NEW WV Mortgage Lender License (no physical location is required)	Fees-Bonds-Net Worth Requirements Texas Mortgage Loan License Page BEST 1998 MORTGAGE MARKETS Approved Local Counsel About Thomas Law Firm
State Agency Confirmation Letters (Our Fee: $100 per letter prepared on your letterhead): Non-supervised Mortgagees (8 Letters): Bolster the value and effect of your HUD approval in the states that are Self-executing (NC, AL, TX, MO, OK, MS, KY, HI) No License States (Lenders: IN, SC, CO, AK, MT, WY) (6 Letters) Total For Lenders: 14 Letters or $1400 Benefits: State Agency Confirmation Letters give notice to the sate that you will be doing business in their state and requests confirmation on state agency letterhead that you are not reqired to btain a mortage license in their state. Normal response is about 60-75%. This alternative is much cheaper than confirmation via an Opinion of Counsel in each state that could cost as much as $3000 each. HUD Registrations: Registrations mustt be filed in TN and AR in order to qualify for the HUD Exemption (Our Fee: $300 per Registration to prepare and file TOTAL FOR 14 LETTERS AND 2 REGISTRATIONS: $2000	Net Branch Candidates Representative Clients PREVIOUS JOKES-OF-THE-DAY REGARDING TEXAS HOME EQUITY LOANS
Hawaii: Trap For the Unwary: When most lenders become national lenders they will hire CT Corporation or CSC (US Corporation Company) to qualify them in all 50 states to do business as a foreign corporation. BEWARE IF YOU ARE A HUD APPROVED LENDER desiring to do business in Hawaii and be exempt from its mortgage licensing laws via your HUD Approval. Jan Yamone, Div. of Financial Institutions, Department of Commerce and Consumer Affairs 1010 Richards Street, Room 602-A, Honolulu, HI 96813, Phone: (808)586-2820, Fax: (808) 586-2818 said that its is imperative that a mortgage company NOT file to do business in HI as a foreign corporation or it will not qualify as the "foreign lender" exemption.










THOMAS LAW FIRM, P.C. 8080 NORTH CENTRAL EXPRESSWAY SUITE 890 DALLAS, TEXAS 75206 214.692.7611 (VOICE) OR 692-7613 (FAX) Not Certified by the Texas Board of Legal Specialization but licensed to practice in all areas of the law