NH MLO cheat sheet

Core state statutes: RSA 397-A (mortgage bankers and brokers), RSA 397-B (mortgage loan servicing), RSA 383-A (banking and credit union regulation), administered by the New Hampshire Banking Department.

RSA 397-A licenses three categories: mortgage banker, mortgage broker, and mortgage loan originator; a banker funds loans with its own money, a broker places loans with third-party funders.

The Banking Department is headed by the Bank Commissioner; mortgage licensees are supervised by the Mortgage Banking Division within the Banking Department.

New Hampshire first-charge mortgage loans are subject to the interest and fee limits of RSA 399-B, which caps certain charges on first mortgages and requires disclosure of the effective annual rate.

Second mortgages and other consumer credit extensions fall under RSA 358-K (regulated small loans) and the Consumer Credit Administration, which sets maximum rates and fees.

RSA 397-A:14-b requires licensees to maintain a surety bond or other acceptable collateral in an amount set by the Commissioner based on loan volume.

Licensees must file annual reports and pay annual fees; failure to file or pay can result in license suspension or revocation under RSA 397-A:19.

A mortgage loan originator may be licensed only while sponsored by a licensed New Hampshire mortgage banker or broker; sponsorship ends when the employer relationship ends.

MLO licensing runs through the Nationwide Multistate Licensing System (NMLS); applicants submit Form MU4, fingerprints, credit report, and a sponsor's attestation.

Pre-licensing education is 20 hours (SAFE Act minimum), including 3 hours of federal law, 3 hours of ethics, 2 hours of nontraditional mortgage products, and 12 hours of general mortgage knowledge.

The SAFE Act requires passing the NMLS national test with a score of 75 or higher; New Hampshire does not impose a separate state-specific test beyond the national component.

Annual continuing education is 8 hours, including 3 hours federal law, 2 hours ethics, 2 hours nontraditional products, and 1 hour of New Hampshire-specific law.

Licenses renew annually between November 1 and December 31 through NMLS; late renewal requires a new application and may trigger a $100 late fee per RSA 397-A.

A license expires if the MLO fails to renew, loses sponsorship, or fails to complete CE; a lapsed MLO may not originate until relicensed.

New Hampshire requires a criminal background check and authorizes the Commissioner to deny a license for felony convictions involving fraud, dishonesty, or breach of trust within the prior 7 years.

MLOs must report changes to NMLS within 30 days, including name changes, address changes, and any administrative or disciplinary action.

RSA 358-A (Consumer Protection Act) prohibits unfair or deceptive acts or practices in trade or commerce, and the Banking Department may enforce it against mortgage licensees.

RSA 397-A:16 makes it a violation to engage in fraud, misrepresentation, or deceit in mortgage lending, or to make false statements to the Department.

Prohibited practices include charging fees for services not performed, failing to disclose the true costs of a loan, and steering borrowers to loans that are not in their interest.

New Hampshire prohibits prepayment penalties on residential first mortgages and limits late fees to a reasonable amount tied to actual costs.

Loan flipping and equity stripping are prohibited; refinancing that does not provide a net tangible benefit to the borrower can be challenged under RSA 358-A.

Licensees may not discriminate in mortgage lending on the basis of race, color, religion, sex, national origin, familial status, disability, age, or marital status under state and federal fair lending laws.

Mortgage brokers owe borrowers a duty of good faith and fair dealing, and must disclose any compensation received from lenders in addition to borrower-paid fees.

Violations of RSA 358-A can result in civil penalties up to $10,000 per violation, plus attorney's fees and costs for the prevailing party.

RSA 397-A:14 requires a written mortgage broker agreement signed by the borrower before any services are performed, disclosing the broker's fees and the nature of the relationship.

The agreement must state whether the broker represents the borrower or the lender and must disclose any affiliated business arrangements.

Loan originators must provide the federal Loan Estimate within 3 business days of receiving a complete application, and the Closing Disclosure at least 3 business days before consummation.

New Hampshire requires disclosure of the total dollar amount of all fees and charges on the first mortgage, including points, origination fees, and third-party costs.

High-cost mortgage loans under HOEPA (12 CFR 1026.32) trigger additional disclosures and restrictions that apply to New Hampshire lenders.

Escrow account requirements follow RESPA; New Hampshire does not mandate escrow on all first mortgages, but if escrow is used the lender must provide an initial escrow statement.

Servicers must provide notices of transfer of servicing and respond to qualified written requests within the RESPA timeframes (5 days acknowledgment, 30 days response).

Advertising by New Hampshire licensees must include the license number and may not use misleading terms such as 'lowest rates' without substantiation.