All Roll Calls
Yes: 130 • No: 0
ArkansasHB14662025 Regular SessionHouse
TO AMEND THE FAIR MORTGAGE LENDING ACT.
Sponsored By: Brandon Achor (Republican), Justin Boyd (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 0 costs, 5 mixed.
Mortgage bonds give consumers recovery rights
Mortgage brokers, bankers, and servicers must keep surety bonds of at least $100,000, with amounts based on prior-year loan activity. Consumers can sue directly on these bonds, and their claims get priority over other claims. Bonds cover claims for at least five years after a licensee stops servicing in Arkansas. Cancellation requires 60 days’ written notice to the commissioner, and liability during that period remains covered. Replacement bonds are due within 30 days when ordered after a lawsuit starts, or immediately after recovery on a bond.
Customer data safeguards exclude small institutions
Financial institutions covered by this subchapter must maintain written security programs led by a qualified individual. Programs must assess risks, limit access, protect data with encryption and multifactor authentication or approved alternatives, and train staff. Institutions must oversee service providers, maintain incident-response and service-recovery plans, and provide security reports at least annually. They remain responsible when an outside provider manages security. Customer information generally must be securely disposed of within two years after its last use, with business, legal-retention, and feasibility exceptions. Without effective ongoing monitoring, annual penetration tests and vulnerability checks at least every six months are required, plus checks after specified material changes. Institutions holding information on fewer than 5,000 consumers are exempt from this subchapter, including its security and notification rules.
Data breach reports have deadlines and delays
Institutions subject to the notification rules must report qualifying data events affecting any Arkansas consumer as soon as possible. The deadline is 45 days after discovery, with required contact, event, and affected-consumer details. Discovery starts when an employee, officer, or agent knows, excluding the person who committed the event. Written law-enforcement findings can delay public notice for up to 30 days after the commissioner receives notice. A written request can extend the delay by up to 60 days; longer delays require a state department finding. Delays must protect a criminal investigation or national security, and do not extend the reporting deadline to the commissioner.
Large mortgage servicers get risk-based oversight
Covered servicers are nonbank firms handling at least 2,000 qualifying one-to-four-unit home loans and operating in at least two states, districts, or territories. Loan counts use the latest year-end report, exclude whole loans the firm owns, and include loans temporarily serviced before sale. Multistate activity counts if current or present at the prior calendar year-end. Licensing-exempt firms, qualifying tax-exempt charities, and specified reverse-mortgage servicers are excluded. After a formal review, the commissioner can add conditions for extremely high-risk firms or waive rules for extremely low-risk firms. The commissioner can also publicly announce temporary rule suspensions during severe economic, environmental, or societal events.
Mortgage firms face revised financial rules
Mortgage banker applicants must submit audited statements showing at least $25,000 in net worth; non-covered servicer applicants must show $100,000. These statements must follow accepted U.S. or international accounting standards, carry an acceptable audit opinion, and be dated within 15 months before application. Covered servicer applicants must meet federal capital, net-worth, and servicing-liquidity standards, even without approval to service government-sponsored enterprise loans. Applicants seeking to service Arkansas home loans can request net-worth waivers or adjustments based on loan mix, positive net worth, and operating reserves. Mortgage bankers still owe annual audited statements within 90 days after fiscal year-end; servicers are removed from that particular requirement. Eligible liquidity assets include unrestricted cash and cash equivalents, plus investment-grade assets held for sale or trade without liens.
Mortgage licensing coverage and exemptions change
The law’s definitions cover residential mortgage loans and firms routinely managing them for owners under servicing contracts. They also cover those receiving borrower payments or related tax and insurance funds. Licensing exemptions now reference January 1, 2025 definitions instead of January 1, 2011 for small-business investment corporations, real estate investment trusts, and timeshare plans. Agricultural-lender references now include USDA Rural Development. Individuals or married couples investing in property-secured loans for their own account can qualify for an exemption. They cannot collect property-tax or insurance funds, or charge fees beyond normal scheduled escrow, title-insurance, and recording-service rates.
Sponsors & Cosponsors
Sponsors
Brandon Achor
Republican • House
Justin Boyd
Republican • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/10/2025
Senate Vote - Monday, March 10, 2025 2:57:14 PM
Yes: 34 • No: 0
House vote • 2/27/2025
House Vote - Thursday, February 27, 2025 2:32:31 PM
Yes: 96 • No: 0
Actions Timeline
Notification that HB1466 is now Act 262
3/12/2025HouseCorrectly enrolled and ordered transmitted to the Governor's Office.
3/11/2025HouseTO BE ENROLLED
3/10/2025HouseReturned from the Senate as passed.
3/10/2025HouseReturned to the House as passed.
3/10/2025SenateRead the third time and passed.
3/10/2025SenateReturned by the Committee, with the recommendation that it Do Pass
3/6/2025SenateRead first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE
2/27/2025SenateReceived from the House.
2/27/2025SenateRead the third time and passed and ordered transmitted to the Senate.
2/27/2025HouseReturned by the Committee Do Pass
2/26/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE
2/12/2025HouseFiled
2/12/2025House
Bill Text
HB1466 - Introduced
2/12/2025
Act Version
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