NMLS Release 2016.1 is targeted for January 25, 2016. The release includes functionality for surety companies and surety bond producers to request an account within NMLS and establish business associations, enhancements to the Mortgage Call Report, general system maintenance updates, and an update to the Transunion Rental Screening Solutions, Inc. (TURSS) agreement. A summary of the changes can be found here.

Connecticut Requires Licensing for Debt Adjustment, Money Transmission

The Connecticut Department of Banking has issued a memorandum to all debt adjuster and money transmission applicants and licensees requiring licensure for persons engaged in activities that meet the definition of both "debt adjustment" and "money transmission" unless exempt. This requirement will be effective on March 1, 2016.

The Department recognizes that some activities such as transmitting bi-weekly mortgage payments to a mortgagee or transmitting unsecured consumer debt payments to a credit are considered "debt adjustment" and "money transmission." More specifically, the Department is requiring that persons considered to be money transmitters by FinCen—those who receive, on behalf of a debtor, money, or evidences thereof for the purposes of distributing such money or evidences thereof among creditors as payment of the debtor's obligations—to become licensed as both unless otherwise exempt.

Connecticut law defines "debt adjustment" as an activity "for or with the expectation of a fee, commission or other valuable consideration, receiving, as agent of a debtor, money or evidence thereof for the purpose of distributing such money or evidences thereof among creditors in full or partial payment of obligations of the debtor." "Money transmission" means "receiving money or monetary value for current or future transmission or the business of transmitting money or monetary value within the United States or to locations outside the United States by any and all means including, but not limited to, payment instrument, wire, facsimile or electronic transfer."

New Jersey Enacts Provisions Concerning Escrow Agent Evaluation Services

New Jersey has enacted provisions making it unlawful for any person to prepare a report for use by a mortgage lender in evaluating the capacity of an escrow agent to perform real estate settlement services in return for a fee charged to that escrow agent. "Escrow agent" means an independent person, including an independent bonded escrow company, an independent financial institution whose accounts are insured by a governmental agency or instrumentality, an independent licensed title insurance agent, or an attorney licensed to practice law in New Jersey, who is responsible for the receipt of any written instrument, money, evidence of title to real or personal property, or other thing of value to be held until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered in connection with the transfer of real estate.

These provisions are effective immediately.