ARC 5091C

ARC 5091C

BANKING DIVISION[187]

Adopted and Filed

Rule making related to licensing sanctions regarding student loan debt

The Iowa Division of Banking hereby amends Chapter 19, "Mortgage Loan Originators," Iowa Administrative Code.

Legal Authority for Rule Making

This rule making is adopted under the authority provided in Iowa Code sections 17A.3 and 535D.21.

State or Federal Law Implemented

This rule making implements, in whole or in part, Iowa Code chapters 17A and 535D.

Purpose and Summary

These amendments rescind the Division's rules regarding denying an application for a mortgage loan originator (MLO) license when the applicant is in default or delinquent on student loan debt as determined by the College Student Aid Commission pursuant to Iowa Code chapter 261. In 2019, the Legislature enacted 2019 Iowa Acts, Senate File 304, which repealed Iowa Code sections 261.121 to 261.127, effectively repealing the provisions whereby the College Student Aid Commission could issue a certificate of noncompliance for failure to repay student loans. The amendments reflect the changes made by Senate File 304 and rescind the Division's rules implementing the now-defunct certificate of noncompliance program.

Public Comment and Changes to Rule Making

Notice of Intended Action for this rule making was published in the Iowa Administrative Bulletin on February 26, 2020, as ARC 4941C. No public comments were received. No changes from the Notice have been made.

Adoption of Rule Making

This rule making was adopted by the Superintendent of Banking on June 16, 2020.

Fiscal Impact

This rule making has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rule making, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rule making would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to 187—Chapter 12.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

Effective Date

This rule making will become effective on August 19, 2020.

The following rule-making actions are adopted:

Item 1. Rescind paragraph 19.3(2)"i."

Item 2. Reletter paragraph 19.3(2)"j" as 19.3(2)"i."

Item 3. Rescind and reserve rule 187—19.14(17A,261).

[Filed 6/17/20, effective 8/19/20]

[Published 7/15/20]

Editor's Note: For replacement pages for IAC, see IAC Supplement 7/15/20.