MississippiSB 25082025 Regular SessionSenateWALLET

Mortgage brokers and lenders; authorize to perform organization activities at a remote location.

Sponsored By: Rita Potts Parks (Republican)

Signed by Governor

Banking and Financial ServicesBusiness and Financial Institutions

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 4 costs, 1 mixed.

Stronger safeguards for mortgage customers' information

Beginning July 1, 2025, mortgage licensees must regularly check whether their customer information safeguards work. Nonbank licensees without effective ongoing monitoring must conduct annual penetration tests and vulnerability assessments twice a year. Licensees must report unauthorized access, disruption, or misuse of consumer information to the state commissioner as promptly as possible. The deadline is three business days after determining an incident occurred, not necessarily after the incident itself.

Mortgage staffing and bond rules ease

Beginning July 1, 2025, each licensed mortgage location still needs at least one licensed loan originator. That person no longer has to be an employee. An originator working as an employee or independent contractor for a covered business can use that business's surety bond. This replaces the need for a separate individual bond when company coverage is used.

Mortgage businesses face higher bond requirements

Beginning July 1, 2025, mortgage broker bond caps rise from $25,000 to $50,000. Mortgage lender bond caps rise from $150,000 to $250,000. The commissioner sets existing licensees' amounts based on the previous year's loan activity, within those ceilings. New applicants must have $50,000 in bond coverage for brokers or $250,000 for lenders. These amounts are required bond coverage, not the price businesses pay to buy a bond.

Mortgage businesses pay higher examination fees

Beginning July 1, 2025, mortgage licensees pay higher fees when the state examines their books and records. In Mississippi, daily fees rise from $300–$600 to $400–$800. The maximum per office or location rises from $2,400 to $3,200. Outside Mississippi, daily fees rise from $300–$800 to $400–$1,000, plus actual examination expenses. These charges fall on the examined businesses, not directly on borrowers.

Mortgage businesses pay higher licensing fees

Beginning July 1, 2025, broker and lender initial license fees rise from $1,500 to $2,000. Annual renewal, due December 31, rises from $1,000 to $1,500. Renewal unpaid before expiration triggers the $2,000 initial fee, plus a penalty of up to $25 per day after expiration. Nonrefundable branch application fees rise from $300 to $500, while branch renewal rises from $100 to $350. Branch renewal unpaid before expiration triggers the $500 initial fee instead of $300.

Mortgage loan originators pay higher license fees

Beginning July 1, 2025, an initial Mississippi mortgage loan originator license costs $300 instead of $200. Applicants pay through the national mortgage licensing system. Annual renewal costs $150 instead of $100. If renewal is unpaid before expiration, the renewal fee is $300 instead of $200. These are occupational licensing charges, not fees charged directly to borrowers.

Mortgage workers gain remote options with safeguards

Beginning July 1, 2025, Mississippi-licensed mortgage companies can allow remote loan origination, including from home, without the 125-mile restriction. Companies must supervise this work under written policies, monitor risks, and certify compliance at least annually. They must provide secure system access and device protections, including security updates and remote locking or wiping. Remote locations are not branches; workers cannot meet customers or store paper records there. The national licensing record lists the company's licensed main office unless the worker chooses a licensed branch.

Sponsors & Cosponsors

Sponsor

Rita Potts Parks
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 168 • No: 0

House vote • 3/5/2025

Passed

Yes: 117 • No: 0

Senate vote • 2/11/2025