Iowa passed a bill authorizing employees to work at remote locations. Under the bill, a mortgage lender, broker, or servicer licensed under the Mortgage Bankers and Brokers Act (MBBA) may authorize employees to work at a remote location if certain conditions are met. “Remote location” means a physical location in the United States, other than a principal place of business or a branch office, where a mortgage banker, broker, or servicer’s employee or an independent contractor of the mortgage banker, broker, and servicer, is authorized to engage in business as a mortgage banker or broker. In addition, the bill amended requirements under the MBBA with respect to net worth. Under the bill, mortgage servicers that service (or subservice) at least 2,000 mortgage loans must maintain sufficient allowable assets for liquidity, in addition to the amounts required for servicing liquidity, to cover normal business operations. Mortgage servicers that meet the Federal Housing Finance Agency’s eligibility requirements for enterprise single-family seller/servicers with respect to minimum capital ratio, net worth and liquidity are deemed in compliance with this requirement (regardless of whether the mortgage servicer is approved for government-sponsored enterprise servicing). The net worth and additional requirements do not apply to mortgage servicers that solely own or conduct reverse annuity mortgage servicing or the reverse annuity mortgage portfolio administered by a servicer. The bill becomes effective July 1, 2024.
Click to view the Iowa House File 2392: https://www.tenaco.com/wp-content/uploads/2024/04/IA-HB-2392-04-11-24.pdf
