In 2014, state legislatures continue to be active in considering policy options that would impact the mortgage industry. The following are two examples of the legislative and regulatory agendas currently being debated across the country:

• Delegates in the Maryland House and Senate are considering legislation that would place a six-month emergency moratorium on all foreclosures on residential properties. Among other provisions, SB 755 and HB 1322 also seek to (1) create a penalty for a person who files an affidavit regarding a foreclosure notice when the person knows or has reason to know that the contents of the notice are inaccurate and (2) alter the time period during which a mortgagor or grantor of residential property may contest a foreclosure or cure a certain default to up to 30 days after the foreclosure sale occurs.
• The Virginia Senate and House have passed legislation regarding the creation of a transitional MLO license. The legislation would authorize the State Corporate Commission to issue a transitional MLO license to individuals who are either (1) licensed to originate mortgage loans in another state or (2) are formerly registered loan originators and are in the process of meeting the requirements necessary to obtain a MLO license. The proposed transitional MLO license would expire after 120 days. Senate Bill 118 and House Bill 954 have been sent to their opposite General Assembly chambers and are currently under consideration. If the proposals are enacted, Virginia would become the third state to grant transitional licenses to out-of-state MLOs and federally registered loan originators (to the extent permitted under federal law) pending their completion of any necessary licensing requirements. As we have previously reported, North Carolina and Ohio are the only two states that have created transitional licensing regimes thus far.