Banking

Top Keyword for banking - used in url generation

MLO Reasonable Commuting Distance

Bulletin
Wednesday, November 27, 2013
Banking Bulletin #42
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Bulletin%20%2342_MLO%20Reasonable%20Commuting%20Distance.pdf

Banking Bulletin No. 42

(November 27, 2013)

Mortgage Loan Originators

Reasonable Commuting Distance from Residence to Office of Employment

The Department of Financial Regulation (the "Department") accepts applications for Mortgage Loan Originator ("MLO") licenses through the Nationwide Mortgage Licensing System and Registry ("NMLS" or "NMLSR").

A MLO is defined as an individual who: (a) takes a residential mortgage loan application or (b) offers or negotiates the terms of a residential mortgage loan. 8 VSA §2200(17). A MLO must be "an employee actively employed at a licensed location of, and supervised and sponsored by, only one licensed lender or licensed mortgage broker operating in this state." 8 VSA §2201(b)(l)(emphasis added). Alternatively, a MLO may be an individual sole proprietor who is also licensed as a mortgage broker or lender. 8 VSA §2201(b)(2).

Vermont licensed lenders and licensed mortgage brokers are licensed on a location by location basis. 8 VSA §§ 2206, 2208. All MLOs must work from the physical location as it appears on the mortgage broker's or lender's license. Neither statute nor the Department permits a MLO to telecommute. Therefore, the MLO's physical work location must be within a reasonable commuting distance from the MLO's home address as shown on NMLS Form MU4.

In determining a "reasonable commuting distance", the Department considered the following factors: geographic accessibility of the physical work location; the quality of the roads; customarily available sources of transportation; and usual travel time. Having weighed these considerations, the MLO's physical work location must be not more than fifty (50) miles from the MLO's home address.

In cases where the distance is greater than fifty (50) miles, a request for exemption from the "reasonable commuting distance" standard may be submitted by the MLO and the employing firm. An exemption will be granted or denied at the Department's discretion after a careful review of the facts set out in the request for exemption.

Dated this 27th day of November 2013

Susan L. Donegan

Commissioner

Mobile Home Disclosure

Bulletin
Wednesday, November 27, 2013
Banking Bulletin #41
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Bulletin%20%2341_Mobile%20Home%20Disclosure.pdf

Banking Bulletin No. 41

(November 27, 2013)

(This Bulletin Supersedes and Replaces Banking Bulletin No. 27)

Mobile Home Retail Installment Contract Disclosure

This Bulletin is issued pursuant to Title 9 V.S.A. § 2603(e), for the purposes of specifying the form and content of the disclosures required by Title 9 V.S.A. § 2603(e) (the "Disclosure"), to increase the flow of information to consumers and encourage them to take advantage of a competitive market. A retail seller shall provide to a potential buyer at the time an application is taken, a written disclosure in a form approved by the Commissioner of the Department of Financial Regulation.

A model disclosure is attached. A retail seller that uses the model disclosure will be deemed to have used a written disclosure in a form approved by the Commissioner. Any changes to this model disclosure must be approved by the Commissioner.

The attached disclosure must be provided to potential buyers beginning February 1, 2014. Any seller wishing to use a customized form must utilize the attached recommended disclosure form until a request for a modification is submitted to the Department and the Commissioner has approved the modified form in writing. The Disclosure shall be printed on a single sheet of colored paper that is easily distinguished from all other disclosures, applications or other documents presented to the buyer of the mobile home. Except as otherwise required herein, the print shall be in a size equal to at least 12 point type.

The Disclosure shall:

A. Contain the following notice in uppercase letters and in a size equal to at least 14 point bold type and otherwise distinguishable from all other text of the Disclosure:

YOU MAY BE ELIGIBLE FOR A LOAN WITH A LOWER INTEREST RATE, AND/OR LESS EXPENSIVE FINANCING COSTS, POINTS, OR FEES FROM ANOTHER LENDER

B. Include a statement informing the borrower(s) that they can obtain a list of lenders participating in Vermont Housing Finance Agency programs and other lenders by contacting the Vermont Department of Financial Regulation at 802-828-3307 or writing to the Department at 89 Main Street, Montpelier, VT 05602-3101. Information may also be accessed via the internet at www.dfr.vermont.gov.

C. Be signed and dated by the seller and the buyers involved in the purchase.


. .

Transition – Prior to February 1, 2014 a retail seller may use either the form attached to Banking

Bulletin No. 27 or the form attached to this Banking Bulletin. Dated this 27th day of November 2013

Susan L. Donegan

Commissioner

 

 

[DISCLOSURE MUST BE PRINTED ON COLORED PAPER]

Mobile Home Retail Installment Contract Disclosure

YOU MAY BE ELIGIBLE FOR A LOAN WITH A LOWER INTEREST RATE, AND/OR LESS EXPENSIVE FINANCING COSTS, POINTS, OR FEES FROM ANOTHER LENDER

A list of lenders licensed or chartered by the State of Vermont may be obtained by calling the Banking Division of the Vermont Department of Financial Regulation at 802-828-3307 or writing to the Department of Financial Regulation at 89 Main Street, Montpelier, VT 05620. Information may also be obtained via the internet at www.dfr.vermont.gov. In addition, a list of nationally and federally chartered lenders with offices in Vermont may be obtained from the Department.

You may also contact the Vermont Housing Finance Agency for a list of lenders participating in VHFA programs. Additional information about VHFA participating lenders can be obtained via the internet at www.vhfa.org/homeownership or by calling 802-864-5743.

You may also contact your local Neighborworks Homeownership Center, www.vthomeownership.org, or you may contact the Champlain Housing Trust (www. champlainhousingtrust.org/announcements/manufactured- home-replacement- program, 802-527-2361) about their Manufactured Home Replacement Program.

_____________________   _________

Buyers                                        Date

_____________________   _________

Buyers                                        Date

_____________________   _________

Seller                                        Date

Vermont Bulletin #41 (Rev. 11/27/2013)

Home Loan Escrow update

Bulletin
Monday, December 9, 2013
Banking Bulletin #40
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Bulletin%20%2340_Home%20Loan%20Escrow.pdf

Banking Bulletin No. 40

(December 9, 2013)

(This Bulletin Supersedes and Replaces Banking Bulletin No. 17)

Home Loan Escrow Accounts

. .

This Bulletin is issued pursuant to 8 V.S.A. §10404, which governs home loan escrow accounts in Vermont. For purposes of this Bulletin and 8 V.S.A. §10404, an “escrow account” means an account into which a borrower is required under the terms of a residential real estate loan agreement to make periodic payments of property taxes, insurance premiums or other similar charges." 8 V.S.A. §10404 (a)(2).

Section 10404 (b) generally requires that lenders pay interest on the funds deposited into an escrow account.

Section 10404 (g) provides that, "the lender shall provide annually, or upon request of the borrower, financial statements relating to the borrower's escrow account in a manner and on a form approved by the commissioner." (emphasis added)

Lenders that use a form of Annual Escrow Account Disclosure Statement as set forth in the federal Real Estate Settlement Procedures Act ("RESPA") and its applicable regulations will be deemed to have issued an escrow account financial statement in a manner and form approved by the commissioner, provided the statement includes interest, if any, paid into the escrow account.

Lenders are reminded that current Vermont law only permits a one month cushion on escrow accounts, not the two month cushion under RESPA. 8 V.S.A. §10404 (c).

All lenders making loans secured by Vermont residential real estate must comply with the requirements of 8 V.S.A. §10404 and this Bulletin if the lender requires that the borrower maintain an escrow account. This applies to all lenders regardless of the source of the funds.

Lenders are directed to the Vermont Home Loan Escrow Account statute (currently found at 8

V.S.A. §10404) for additional information and restrictions regarding escrow accounts.

Dated this 9th day of December 2013

Susan L. Donegan

Commissioner

Withdraws All Unnecessary Banking Bulletins

Bulletin
Wednesday, November 27, 2013
Banking Bulletin #39
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Bulletin%20%2339_WD%20Unnecessary%20Bulletins.pdf

Banking Bulletin No. 39

(November 27, 2013)

Withdrawal of Unnecessary Banking Bulletins

The Department has reviewed the Banking Bulletins issued by the Commissioner and the Commissioner has determined that a number of existing bulletins are either no longer necessary or have been rendered irrelevant by the passage of time or changed circumstances.

The following Banking Bulletins are WITHDRAWN: Banking Bulletin #1 (Revised) – Payment Order Accounts

Banking Bulletin #3 – Practices by Institutions Regarding Maturing Certificates of Deposit

Banking Bulletin #4 – Negotiable Order of Withdrawal "NOW" Accounts

Banking Bulletin #5 – Loans and Investment Not Otherwise Qualifying or Permitted

Banking Bulletin #6 – Loans to Officers

Banking Bulletin #7 - Loans versus Commitments

Banking Bulletin #8 – State Chartered Credit Unions Rate of Interest

Banking Bulletin #9 – Service Charges on Dormant Accounts

Banking Bulletin #10 – Adjustable Rate Loans Secured by Subordinate Liens on Residential Real Estate of Two Units or Less Which are Owner-Occupied

Banking Bulletin #12 – Permitted Interest Rates on Loans (Credit Unions)

Banking Bulletin #13 – Internal Revenue Service Form 990 (Credit Unions)

Banking Bulletin #14 – Risk Assets (Credit Unions)

Banking Bulletin # 16 – Late Fees on Credit Cards Banking Bulletin #18 – Sale of Annuities

Banking Bulletin #20 – New Charges and Assessment Formula

Banking Bulletin #22 (Revised) – New Minimum Assessment and Loan Production Assessment

Banking Bulletin #24 – Funded Settlements

Banking Bulletin #33 – Motor Vehicle Retail Installment Contract DMV Warranty Fee Federal Car Allowance Rebate System (a/k/a Cash for Clunkers-Program)

Dated this 27th day of November 2013

Susan L. Donegan

Commissioner

Clarification of Declared Rate for 9 V.S.A. §104 (High Rate Loans) and Reg. B-98-2 (High Rate, High Point Notices for Residential Real Estate Loans)

Bulletin
Thursday, November 1, 2012
Banking Bulletin #38
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Banking_Bulletin_%2338.pdf

BANKING BULLETIN #38

November 1, 2012

 

Clarification of Declared Rate for

9 V.S.A. §104 (High Rate Loans) and

Reg. B-98-2 (High Rate, High Point Notices for Residential Real Estate Loans)

This Bulletin clarifies the Declared Rate for purposes of 9 V.S.A. §104 (High Rate Loans) and Regulation B-98-2 (High Rate, High Point Notices for Residential Real Estate Loans).

Both 9 V.S.A. §104 and Regulation B-98-2 refer to 32 V.S.A. §3108 for purposes of establishing the Declared Rate. Title 32 V.S.A. §3108 was amended by Act No. 143 of the 2012 Vermont legislative session. As amended, §3108 establishes an interest rate to be applied to the overpayment of taxes ("overpayment rate'') and then establishes a different interest rate to be applied to the underpayment of taxes ("underpayment rate"). An October 16, 2012 memorandum from the Commissioner of Taxes establishes the overpayment rate at 3.6% and establishes the underpayment rate at 5.6% for calendar year 2013. (A copy of the Commissioner of Taxes memorandum is attached to this Bulletin.)

The establishment of two rates under §3108 could create confusion about which rate applies for purposes of 9 V .S.A. §104 and Regulation B-98-2. To avoid such confusion, the Commissioner declares that the Declared Rate for purposes of 9 V.S.A. §104 and Regulation B-98-2 shall be the overpayment rate established by 32 V.S.A. §3108.

Consequently, for purposes of 9 V.S.A. §104 and Regulation B-98-2 the Declared Rate for calendar year 2013 shall be 3.6%.

Stephen W. Kimbell Commissioner

Vermont Department of Financial Regulation

 

 

MEMORANDUM

TO: Commissioner, Deputy Commissioner, General Counsel, Division Directors, Policy Analysts and Staff Attorneys

FROM: Susan Mesner, Senior Economist

DATE: October 16, 2012

SUBJECT: 2013 Interest Rates

Act 143 (2012) amended the law that governs the calculation of interest rates in Vermont for underpayment and overpayment of tax liabilities. The annual rate for overpayments is now rounded up to the nearest quarter percent, with the quarterly rate rounded to the nearest whole tenth of a percent. The annual rate for underpayments is set at 200 basis points above the rate for overpayments.

The average prime loan rate charged by banks (as determined by the Board of Governors of the Federal Reserve System) for the 12-month period beginning October 1, 2011 and ending September 30, 2012 was 3.25%. Rounded up to the nearest quarter percent, the annual rate for 2012 is 3.25%. When converted to a monthly rate, the result is 0.27% per month.

Under 32 V.S.A. § 3108(a), the monthly rate is rounded up to the nearest whole tenth of a percent, producing aninterest rate in 2013 of 0.3% per month for overpayments, and an annual rate of 3.6%. The 2013 annual interest rate for underpayments is 5.6%, or 0.5% per month.

These rates apply to interest that accrues in calendar year 2013.

Mary Peterson

Commissioner of Taxes

Dated 10/12/2012

Clarification of the application of 8 V.S.A. § 14103 to state-chartered credit unions

Bulletin
Friday, October 5, 2012
Banking Bulletin #37
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Banking_Bulletin_37_0.pdf

Banking Bulletin No. 37

October 5, 2012

This bulletin is to clarify the application of 8 V.S.A. § 14103 to state-chartered credit unions.

1. A state chartered credit union must not describe itself as a “banking cooperative,” banking co- op,” “bank,” “banking association,” “trust company,” or other similar sounding word or name in its advertising and marketing.

2. Any state chartered credit union using the phrases referred to in ¶ 1 above in its marketing and advertising material must discontinue that use starting November 15, 2012.

3. The Department will not take regulatory action against a state chartered credit union under 8

V.S.A. § 14103 as long as that credit union refrains from referring to itself as a “banking cooperative,” banking co-op, “bank,” “banking association”, “cooperative bank,” “trust company,” or other similar sounding word or name in any future advertisements or marketing materials. As more fully set forth below, a state chartered credit union is not prohibited from using the word “bank” or any derivative of the word “bank” to describe its services or to differentiate itself from a bank.

4. (i) For purposes of this paragraph (4), the term “services” means soliciting, receiving or

accepting money or its equivalent on deposit, extending loans and financing of any kind, escrow services, investment services, and money transfers of all kinds, including without limitation bill- paying and debit card services, Automated Clearing House transfers, and wire transfers.

(ii) For purposes of this paragraph (4), the term “advertisements” is limited to

advertisements ordinarily accessible by or directed to non-members and purchased and placed by or on behalf of a state chartered credit union in print, radio, internet/electronic and television media, hyperlink or search engine designated landing pages supporting electronic media, promotional

material in any media, and pages on a website maintained by or on behalf of a state chartered credit union. The term “advertisements” as used in this paragraph (4) does not include items used solely to promote the state chartered credit union’s brand without reference to services as defined in this paragraph (4). Such excluded items may include, by way of example only, gifts, premiums, and the display of a state chartered credit union’s logo and slogans.

(iii) When a state chartered credit union uses the terms “bank” or “banking” or derivative terms or phrases in advertisements (as limited in this paragraph (4)) in which a state chartered credit union refers to its services (as defined in this paragraph (4)) it will disclose that it is a credit union. The disclosure that a state chartered credit union is a credit union will be clear and conspicuous so that reasonable consumers can read, see or hear and understand the information.

(iv) Notwithstanding any other provision of this paragraph (4), when a state chartered credit

union uses the terms “bank” or “banking” or derivative terms or phrases in the text of hyperlinks or search engine designated links, it need not include the term “credit union” in the text of the link but a state chartered credit union will disclose on the landing page of those links that it is a credit union. The disclosure that a state chartered credit union is a credit union will be clear and conspicuous so that reasonable consumers can read, see or hear and understand the information.

Stephen W. Kimbell, Commissioner

Transition Period For Financial Advisors To Obtain a Mortgage Loan Originator License

Order
Friday, May 11, 2012
Docket No. 12-012-B
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Docket%2012-012-B.pdf

Docket No. 12-012-B

In Re: 8 V.S.A. Chapter 73 - Financial Advisors Mortgage Loan Originator License Transition Period


ORDER

TRANSITION PERIOD FOR FINANCIAL ADVISORS

TO OBTAIN A MORTGAGE LOAN ORIGINATOR LICENSE

 

Background

1. Act 85 of 2012 became effective on April 20, 2012.

2. 8 V .S.A. Chapter 73 requires that an individual must be licensed to engage in the business of a mortgage loan originator. 8 V.S.A. §220l(a)(3).

3. Act 85 expanded the definition of a mortgage loan originator to include an individual who "recommends, refers, or steers a borrower to· a particular lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower; and ... receives or expects to receive payment of money or anything of value in connection with [such] activities ...." 8 V.S.A. §2200 (17)(C)(i)(Ill), (C)(ii).

4. The Department is aware that the financial advisors of securities companies ("Company") occasionally refer a client seeking a residential mortgage loan to an affiliated lender in the Company's corporate family. The financial advisor is compensated by the Company if the client obtains a residential mortgage loan from the affiliated lender.

5. A financial advisor who recommends, refers, or steers a client to a lender for a residential mortgage loan for compensation or gain or in the expectation of compensation or gain falls within the definition of a mortgage loan originator and must be licensed as a Vermont mortgage loan originator and sponsored by a Vermont licensed mortgage broker or a Vermont licensed lender.

6. Financial advisors who desire to continue recommending, referring, or steering their clients to a lender for a residential mortgage loan for compensation or gain or in the expectation of compensation or gain must obtain a Vermont mortgage loan originator license and must be sponsored by a Vermont licensed mortgage broker or a Vermont licensed lender.

7. Pursuant to 8 V.S.A. §15 the Commissioner may issue such orders as shall be necessary to the administration of title 8 V .S.A. and to carry out the purposes of such title.

8. The Commissioner finds that providing Companies and financial advisors time to adjust to the changes resulting from Act 85 without creating an undue hardship for Companies, financial advisors, or their clients is necessary and appropriate to the administration of 8 V.S.A. Chapter 73 and to carrying out the purposes of Chapter 73.

Order

It is hereby ordered that:

9. Prior to December 31, 2012 a financial advisor who: (a) is employed by a Company holding a Vermont mortgage broker or lender license; and (b) limits his or her mortgage loan originator activity to recommending, referring, or steering a client seeking a residential mortgage loan to an affiliated lender in exchange for compensation or gain or in the expectation of compensation or gain, does not need to be licensed as a Vermont mortgage loan originator.

12. On and after January 1, 2013 a financial advisor who recommends, refers, or steers a client seeking a residential mortgage loan to a lender for compensation or gain or in the expectation of compensation or gain must have an individual Vermont mortgage loan originator license and must be employed and sponsored by a Vermont licensed lender or a Vermont licensed mortgage broker.

 

Financial Advisors – Transition Period to Obtain a Mortgage Loan Originator License

Bulletin
Thursday, May 10, 2012
Banking Bulletin #36
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/Banking%20Bulletin_%2336.pdf

BANKING BULLETIN #36

May 10, 2012

Financial Advisors – Transition Period to Obtain a Mortgage Loan Originator License

Pursuant to Act 85 of 2012 a "mortgage loan originator" includes an individual who "recommends, refers, or steers a borrower to a particular lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower; and ... receives or expects to receive payment of money or anything of value in connection with [such] activities...." 8 V.S.A. §2200 (17)(C)(i)(III), (C)(ii).

The Department previously informed certain securities companies ("Company") that financial advisors did not fit within the definition of a mortgage loan originator and did not need to obtain a mortgage loan originator license. The Department withdraws its prior comments in light of the changes brought about by Act 85.

Financial advisors occasionally refer a client interested in a residential mortgage loan to an affiliated lender. The financial advisor is compensated by the Company if the client obtains a loan from the affiliated lender. A financial advisor who recommends, refers, or steers a client seeking a residential mortgage loan to a lender for compensation or gain or in the expectation of compensation or gain must now be licensed as a mortgage loan originator and sponsored by a Vermont licensed mortgage broker or a Vermont licensed lender.

Providing Companies and financial advisors time to adjust to the requirements of Act 85 without creating an undue hardship for Companies, financial advisors, or their clients is necessary and appropriate to the administration of 8 V.S.A. Chapter 73. See 8 V.S.A. §15. The attached order provides the following transition period:

(1) Prior to December 31, 2012 a financial advisor who: (a) is employed by a Company holding a Vermont mortgage broker or lender license; and (b) limits his or her mortgage loan originator activity to recommending, referring, or steering a client seeking a residential mortgage loan to an affiliated lender in exchange for compensation or gain or in the expectation of compensation or gain, does not need to be licensed as a Vermont mortgage loan originator.

(2) On and after January 1, 2013 a financial advisor who recommends, refers, or steers a client seeking a residential mortgage loan to a lender for compensation or gain or in the expectation of compensation or gain must have an individual Vermont mortgage loan originator license and must be employed and sponsored by a Vermont licensed mortgage broker or a Vermont licensed lender.

Stephen W. Kimbell, Commissioner

Vermont Department of Financial Regulation

PACE Reserve Fund

Bulletin
Wednesday, January 25, 2012
Banking Bulletin #35
File attachments: 
http://www.dfr.vermont.gov/sites/default/files/BankBull_35Rev_0.pdf

BANKING BULLETIN #35

Revised January 25, 2012

PACE Reserve Fund

Effective January 1, 2012, pursuant to 24 V.S.A. §3269(c) and (d), the Commissioner of the Department of Banking, Insurance, Securities and Health Care Administration  has determined, until further notice, that every PACE participant will contribute 2.0 percent of the original PACE assessment to the Reserve Fund created pursuant to 24 V.S.A. § 3269.


Stephen W. Kimbell, Commissioner

Pages

Subscribe to RSS - Banking