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Arizona and Arkansas Legislative Update

The Arizona legislature recently amended its recording fees, effective June 30, 2019.  The Arkansas legislature recently amended the Fair Mortgage Lending Act (the “Act”).  It also amended its laws to require closing agents to provide certain disclosures when closing a transaction involving rural and agricultural properties and amended its Personal Information Protection Act.  The Arkansas […]

The Arizona legislature recently amended its recording fees, effective June 30, 2019.  The Arkansas legislature recently amended the Fair Mortgage Lending Act (the “Act”).  It also amended its laws to require closing agents to provide certain disclosures when closing a transaction involving rural and agricultural properties and amended its Personal Information Protection Act.  The Arkansas legislation discussed is effective June 13, 2019.

ARIZONA SENATE BILL 1043

For recording papers required or authorized by law to be recorded, if the fee is not otherwise specified, the fee is now a flat fee of $30 (previously $5 for the first five pages plus $1 for each additional page not to exceed $250).  Recording of deeds, deeds of trust or mortgages, and releases are now included in the flat rate of $30. 

ARKANSAS SENATE BILL 188

The Act now includes an option for a “transitional loan officer license” which is a license that:

  • Is issued to an individual who is employed by a mortgage banker or mortgage broker licensed under the Act;
  • Is limited to a term of no more than 120 days; and
  • Is not subject to reapplication, renewal, or extension.

Accordingly, the definition of “Applicant” and “Licensee” now includes a transitional loan officer.

A transitional loan officer license terminates when:

  • The transitional loan officer’s employment by or relationship with a licensed mortgage broker or mortgage banker terminates;
  • The 120-day period ends; or
  • The individual receives a loan officer license.

The amendment also revises the exemption for manufactured home retailers by adding the following requirements to be exempt:

  • They may not receive compensation or financial gain for engaging in loan officer activities that exceed the amount of compensation or financial gain that could be received in a comparable cash transaction for a manufactured home;
  • They must disclose to the consumer in writing any corporate affiliation with a mortgage banker;
  • They must provide referral information for at least one unaffiliated creditor if the manufactured home retailer has a corporate affiliation with a mortgage banker and the mortgage banker offers a recommendation; and
  • They may not directly negotiate loan terms (which includes rates, fees, and other costs) with the consumer or lender.

ARKANSAS SENATE BILL 408

A closing agent must provide a written disclosure statement before or at the time of closing a real estate transaction that makes a buyer of real property aware that:

  • The real property may be located within or near a rural area; and
  • Agricultural operations on real property nearby are protected, and may not be found to be a public or private nuisance if the agricultural operation employs methods or practices that are commonly or reasonably associated with agricultural production.

A cause of action will not arise against and liability will not be imposed upon a closing agent or a closing agent's employer due to a failure to provide a buyer of real property the written disclosure statement required above.

ARKANSAS HOUSE BILL 1943

"Biometric Data" means data generated by automatic measurements of an individual's biological characteristics, including without limitation:

  • Fingerprints;
  • Faceprint;
  • A retinal or iris scan;
  • Hand geometry;
  • Voiceprint analysis;
  • Deoxyribonucleic acid (DNA); or
  • Any other unique biological characteristics of an individual if the characteristics are used by the owner or licensee to uniquely authenticate the individual's identity when the individual accesses a system or account.

If a breach of the security of a system affects the personal information of more than 1,000 individuals, the person or business required by state law to make a disclosure of the security breach must, at the same time the security breach is disclosed to an affected individual or within 45 days after the person or business determines that there is a reasonable likelihood of harm to customers, whichever occurs first, disclose the security breach to the Attorney General.

A person or business must retain a copy of the written determination of a breach of the security of a system and supporting documentation for five years from the date of determination of the breach of the security of the system.  If the Attorney General submits a written request for the written determination of the breach of the security of the system, the person or business must send a copy of the written determination of the breach of the security of the system and supporting documentation to the Attorney General no later than 30 days after the date of receipt of the request.  The determination and documentation retained under this provision are confidential and not subject to public disclosure.

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Diane Jenkins

Director, National Mortgage Compliance Practice Group, AsurityDocs Of Counsel, Sandler Law Group

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