The Alabama legislature recently amended provisions of its Uniform Condominium Act (“Act”) to clarify lien priority and what fees could be included in the lien, effective January 1, 2019.  The Connecticut legislature recently amended its laws related to pre-licensing education for mortgage loan originators, loan processors, and underwriters, effective January 1, 2019.  The Colorado Division of Real Estate recently amended rules related to pre-licensing education required for mortgage loan originators, effective November 14, 2018.

ALABAMA SENATE BILL 337

Currently a unit owners’ association has a lien on a unit for any assessment levied against that unit or fines imposed against its unit owner.  The lien now includes any other moneys due the association for special assessments or services or charges, such as water or repairs.

The current law provides that such a lien is prior to all other liens and encumbrances except:

• Liens and encumbrances recorded before the recordation of the declaration;
• A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent; and
• Liens for real estate taxes and other governmental assessments or charges against the unit.

The law was amended to provide that a unit owners’ association lien is also prior to the mortgages and deeds of trust described above to the extent of the common expense assessments based on the periodic budget adopted by the association which would have become due in the absence of acceleration during the six months immediately preceding:

• The association’s institution of a civil action to enforce its lien; or
• A foreclosure of a mortgage or deed of trust described above.

The association’s six-month priority lien does not include the association’s costs or attorney fees in enforcing its lien.  Unless otherwise provided, upon a showing by the holder of a mortgage or deed of trust described above that the instrument has been assigned to or is owned or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Government National Mortgage Association, the six-month priority lien is subject to and may not be interpreted to exceed any period of time or amount allowed for priority under regulations, rules, guidelines, or requirements adopted by or applicable to any of the above entities.

CONNECTICUT HOUSE BILL 7141

In order to meet the pre-licensing education and testing requirements required for mortgage loan originators, loan processors, and underwriters, an individual must complete:

• At least twenty hours of approved education (previously twenty-one) which must include at least:
  • Three hours of instruction on relevant federal law and regulations;
  • Three hours of ethics training, including instruction on fraud, consumer protection and fair lending issues; and
  • Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
• At least one hour of approved education on relevant Connecticut law.

An individual previously licensed as a mortgage loan originator, loan processor or underwriter who is applying to be relicensed must prove that he/she has completed all of the continuing education requirements for the year in which the license was last held except that an individual required to retake pre-licensing education is not required to complete any outstanding continuing education requirements.

If an individual has not obtained a mortgage loan originator license in any state or an active federal registration by the date that is three years from the date such individual completed either the twenty hours of pre-licensing education or the one hour of Connecticut specific pre-licensing education, such individual is required to retake either the twenty hours of pre-licensing education or one hour of Connecticut specific pre-licensing, or both, as applicable, prior to being licensed as either a mortgage loan originator, loan processor, or underwriter.

If an individual previously held but no longer holds an approved mortgage loan originator license in any state or an active federal registration, such individual must obtain a mortgage loan originator license in any state or an active federal registration not later than three years from the date he/she last held such license or registration, or such individual must retake either the twenty hours of pre-licensing education or the one hour of Connecticut specific pre-licensing education prior to being licensed as a mortgage loan originator, loan processor or underwriter.

COLORADO RULES – 4 CCR 725-3 CHPATER 2 AND 4 LOAN ORIGINATOR LICENSING

An applicant for licensure as a Colorado mortgage loan originator must successfully complete twenty hours of pre-licensing education.  The twenty hours of pre-licensing education must now be satisfactorily completed within the three-year period immediately preceding the date of application for licensure.

Individuals who fail to maintain an active valid license for at least three years and are re-applying for licensure must also complete the twenty hours of pre-licensing education within the three-year period immediately preceding the date they reapply.