In 2023, North Dakota enacted Senate Bill 2090 (“SB 2090”) which added Chapter 13-12 Residential Mortgage Lenders to the North Dakota Century Code and established a new licensing requirement for “residential mortgage lending.” As noted in our previous article, the definition of residential mortgage lending encompasses both mortgage lenders and brokers involved in the “act of arranging or providing residential mortgage loans as a form of financing, or advertising or soliciting either in print, by letter, in person, or otherwise, the right to find lenders or provide residential mortgage loans to a person.”
Chapter 13-12 outlines provisions related to application for licensure, licensing fees, surety bond, and license renewal, record keeping requirements, as well as prohibited acts and requirements. A list of exempted entities is also provided under NDCC § 13-12-04 and includes banks, credit unions, savings and loan associations, insurance companies, individuals licensed under Chapter 13-10 solely as a mortgage loan originator, state and federal agencies, nonprofit corporations, and trust companies.
Under the new requirements, residential mortgage lenders are exempt from holding a North Dakota Money Broker license after the August 1, 2023 effective date unless they are also engaged in lending activity outside of residential mortgages, such as commercial, agriculture, or non-residential consumer lending. A transition period of August 1, 2023 through December 31, 2023 was provided for all North Dakota Money Broker licensees to transition to an active Residential Mortgage Lender license, or branch registration, on the Nationwide Multi-State Licensing System (“NMLS”).
DocMagic added a new North Dakota Residential Mortgage Lenders Contract (Form ID: NDRML.MSC) as of August 1, 2023 for all North Dakota initial and pre-closing packages to satisfy a new notice to borrower requirement under NDCC § 13-12-27. DocMagic also continued to provide the North Dakota Money Broker Contract (Form ID: NDMBC.MSC) in initial and preclosing packages during the transition period for clients that had not completed the transition from the Money Broker license to the Residential Mortgage Lender license.
Because the transition period is now expired, DocMagic will remove the North Dakota Broker Contract (Form ID: NDMBC.MSC) and the North Dakota Money Broker Loan Disclosure Statement (Form ID: NDLDS.MSC) from all North Dakota packages, beginning on April 11, 2024.
For additional information, please see the North Dakota Financial Institutions Residential Mortgage Lender License and Branch Registration Letter.
To make any other adjustments to your account settings, or for more information, please contact DocMagic’s Customer Service.
