LB 474 (2025) — Nebraska Money Transmitters Act rewritten as MTMA, slip law (Part 3 of 3)
Document text
Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
into
agreements or sharing arrangements with other governmental agencies, the
Conference of State Bank Supervisors, the American Association of Residential
Mortgage Regulators, or other associations representing governmental agencies
as established by adopting and promulgating rules and regulations or an order
of the director.
Sec. 95. The director may adopt and promulgate rules and regulations and
issue orders, rulings, demands, and findings to carry out the purposes of the
Nebraska Installment Loan and Sales Act.
Sec. 96. Any person violating subsection (4) of section 45-345, section
70 of this act, section 45-356, or section 80 of this act is guilty of a Class
II misdemeanor. If, in the making of, or collection on, any loan contract, any
act is done which constitutes a Class II misdemeanor under this section, that
loan shall not be void, but the licensee shall have no right to collect or
receive any interest or charges whatsoever. If any interest or other charges
have been collected, the licensee shall forfeit and refund to the borrower all
interest and other charges collected on the loan involved and shall not collect
thereafter any interest or other charges contracted for and thereafter due on
the loan involved, as liquidated damages, and the licensee or its assignee, if
found liable, shall pay the costs of any action relating thereto, including
reasonable attorney's fees. No licensee shall be found liable under this
section if the licensee shows by a preponderance of the evidence that the
violation was not intentional and resulted from a bona fide error
-64-
LB474 LB474
2025 2025
notwithstanding the maintenance of procedures reasonably adopted to avoid any
such error.
Sec. 97. Any violation of section 93 of this act, in connection with any
loan transaction, however acquired, shall not render the indebtedness, any
interest, or other charges void or uncollectible. In an action, other than a
class action, the borrower may recover from the licensee violating section 93
of this act an award of liquidated damages in an amount determined by the
court, but not less than five hundred dollars nor more than one thousand
dollars. In any legal action brought pursuant to this section in which the
licensee is found liable, the court shall award costs and reasonable attorney's
fees to the borrower. A licensee is not liable under this section if the
licensee notifies the borrower of an error before the licensee receives from
the borrower written notice of the error or before the borrower has brought an
action under this section and the licensee corrects the error within thirty
days after notifying the borrower. A licensee may not be held liable in any
action brought under this section if the licensee shows by a preponderance of
evidence that the violation was not intentional and resulted from a bona fide
error notwithstanding the maintenance of procedures reasonably adopted to avoid
the error.
Sec. 98. Whenever the director has reasonable cause to believe that any
person is violating or is threatening to or intends to violate the Nebraska
Installment Loan and Sales Act, the director may, in addition to any action
provided in the act and without prejudice thereto, enter an order requiring
such person to cease and desist or to refrain from such violation. An action
may also be brought, on the relation of the Attorney General and the director,
to enjoin such person from engaging in or continuing such violation or from
doing any act or acts in furtherance of such violation. In any such action, an
order or judgment may be entered awarding such preliminary or final injunction
as may be deemed proper. In addition to all other means provided by law for the
enforcement of a restraining order or injunction, the court, in which such
action is brought, has power and jurisdiction to impound and appoint a receiver
for the property and business of the defendant, including books, papers,
documents, and records pertaining thereto or so much thereof as the court may
deem reasonably necessary to prevent violations of the Nebraska Installment
Loan and Sales Act through or by means of the use of such property and
business. Such receiver, when so appointed and qualified, has such powers and
duties as to custody, collection, administration, winding up, and liquidation
of such property and business as shall, from time to time, be conferred upon
the receiver by the court.
Sec. 99. (1) The department may order any person to cease and desist
whenever the department determines that the person has violated any provision
of the Nebraska Installment Loan and Sales Act. Upon entry of a cease and
desist order, the director shall promptly notify the affected person that such
order has been entered, of the reasons for such order, and that upon receipt,
within fifteen business days after the date of the order, of written request
from the affected person a hearing will be scheduled within thirty business
days after the date of receipt of the written request unless the parties
consent to a later date or the hearing officer sets a later date for good
cause. If a hearing is not requested and none is ordered by the director, the
order shall remain in effect until it is modified or vacated.
(2) The director may vacate or modify a cease and desist order if he or
she finds that the conditions which caused its entry have changed or that it is
otherwise in the public interest to do so.
(3) A person aggrieved by a cease and desist order of the director may
obtain judicial review of the order in the manner prescribed in the
Administrative Procedure Act and the rules and regulations adopted and
promulgated by the department under the act. The director may obtain an order
from the district court of Lancaster County for the enforcement of the cease
and desist order.
(4) A person who violates a cease and desist order of the director may,
after notice and hearing and upon further order of the director, be subject to
a penalty of not more than five thousand dollars for each act in violation of
the cease and desist order. The department shall remit fines collected under
this section to the State Treasurer for distribution in accordance with Article
VII, section 5, of the Constitution of Nebraska.
Sec. 100. (1) The director may, following a hearing under the
Administrative Procedure Act, impose an administrative fine against any
officer, director, shareholder, partner, or member of a licensee, if the
director finds the licensee or any such person participated in or had knowledge
of any act prohibited by the Nebraska Installment Loan and Sales Act or
otherwise violated the act. Such administrative fine shall be in addition to or
separate from any fine imposed against a licensee pursuant to section 45-346.
(2) If the director finds, after notice and hearing in accordance with the
Administrative Procedure Act, that any person has knowingly committed any act
prohibited by section 93 of this act or otherwise violated the Nebraska
Installment Loan and Sales Act or any rule and regulation or order adopted
thereunder, the director may order such person to pay (a) an administrative
fine of not more than five thousand dollars for each separate violation and (b)
the costs of investigation.
(3) If a person fails to pay an administrative fine and the costs of
investigation ordered pursuant to this section, a lien in the amount of such
fine and costs may be imposed upon all assets and property of such person in
this state and may be recovered in a civil action by the director. The lien
-65-
LB474 LB474
2025 2025
shall attach to the real property of such person when notice of the lien is
filed and indexed against the real property in the office of the register of
deeds in the county where the real property is located. The lien shall attach
to any other property of such person when notice of the lien is filed against
the property in the manner prescribed by law. Failure of the person to pay such
fine and costs shall constitute a separate violation of the act.
(4) The department shall remit fines collected under this section to the
State Treasurer for distribution in accordance with Article VII, section 5, of
the Constitution of Nebraska.
Sec. 101. All original license fees, annual renewal fees, investigation
and examination fees, charges, and costs collected by or paid to the department
pursuant to the Nebraska Installment Loan and Sales Act shall be remitted to
the State Treasurer for credit to the Financial Institution Assessment Cash
Fund and shall be available for the uses and purposes of the fund.
Sec. 102. Section 45-702, Reissue Revised Statutes of Nebraska, is amended
to read:
45-702 For purposes of the Residential Mortgage Licensing Act:
(1) Borrower means the mortgagor or mortgagors under a real estate
mortgage or the trustor or trustors under a trust deed;
(2) Branch office means any location at which the business of a mortgage
banker or mortgage loan originator is to be conducted, including (a) any
offices physically located in Nebraska, (b) any offices that, while not
physically located in this state, intend to transact business with Nebraska
residents, and (c) any third-party or home-based locations that mortgage loan
originators, agents, and representatives intend to use to transact business
with Nebraska residents;
(3) Breach of security of the system means unauthorized acquisition of
data that compromises the security, confidentiality, or integrity of the
information maintained by the Nationwide Mortgage Licensing System and
Registry, its affiliates, or its subsidiaries;
(4) Clerical or support duties means tasks which occur subsequent to the
receipt of a residential mortgage loan application including (a) the receipt,
collection, distribution, and analysis of information common for the processing
or underwriting of a residential mortgage loan or (b) communication with a
consumer to obtain the information necessary for the processing or underwriting
of a residential mortgage loan, to the extent that such communication does not
include offering or negotiating loan rates or terms or counseling consumers
about residential mortgage loan rates or terms;
(5) Control means the power, directly or indirectly, to direct the
management or policies of a mortgage banking business, whether through
ownership of securities, by contract, or otherwise. Any person who (a) is a
director, a general partner, or an executive officer, including the president,
chief executive officer, chief financial officer, chief operating officer,
chief legal officer, chief compliance officer, and any individual with similar
status and function, (b) directly or indirectly has the right to vote ten
percent or more of a class of voting security or has the power to sell or
direct the sale of ten percent or more of a class of voting securities, (c) in
the case of a limited liability company, is a managing member, or (d) in the
case of a partnership, has the right to receive, upon dissolution, or has
contributed, ten percent or more of the capital, is presumed to control that
mortgage banking business;
(6) Department means the Department of Banking and Finance;
(7) Depository institution means any person (a) organized or chartered
under the laws of this state, any other state, or the United States relating to
banks, savings institutions, trust companies, savings and loan associations,
credit unions, or industrial banks or similar depository institutions which the
Board of Directors of the Federal Deposit Insurance Corporation finds to be
operating substantially in the same manner as an industrial bank and (b)
engaged in the business of receiving deposits other than funds held in a
fiduciary capacity, including, but not limited to, funds held as trustee,
executor, administrator, guardian, or agent;
(8) Director means the Director of Banking and Finance;
(9) Dwelling means a residential structure located or intended to be
located in this state that contains one to four units, whether or not that
structure is attached to real property, including an individual condominium
unit, cooperative unit, mobile home, or trailer, if it is used as a residence;
(10) Federal banking agencies means the Board of Governors of the Federal
Reserve System, the Office of the Comptroller of the Currency, the Consumer
Financial Protection Bureau, the National Credit Union Administration, and the
Federal Deposit Insurance Corporation;
(11) Immediate family member means a spouse, child, sibling, parent,
grandparent, or grandchild, including stepparents, stepchildren, stepsiblings,
and adoptive relationships;
(12) Installment loan company means any person that has been issued an
installment loan license licensed pursuant to the Nebraska Installment Loan and
Sales Act;
(13) Licensee means any person licensed under the Residential Mortgage
Licensing Act as either a mortgage banker or mortgage loan originator;
(14) Loan processor or underwriter means an individual who (a) performs
clerical or support duties as an employee at the direction of and subject to
the supervision and instruction of a person licensed, or exempt from licensing,
under the Residential Mortgage Licensing Act or Nebraska Installment Loan and
Sales Act and (b) does not represent to the public, through advertising or
-66-
LB474 LB474
2025 2025
other means of communicating or providing information including the use of
business cards, stationery, brochures, signs, rate lists, or other promotional
items, that such individual can or will perform any of the activities of a
mortgage loan originator;
(15) Mortgage banker or mortgage banking business means any person (a)
other than (i) a person exempt under section 45-703, (ii) an individual who is
a loan processor or underwriter, or (iii) an individual who is licensed in this
state as a mortgage loan originator and (b) who, for compensation or gain or in
the expectation of compensation or gain, directly or indirectly makes,
originates, services, negotiates, acquires, sells, arranges for, or offers to
make, originate, service, negotiate, acquire, sell, or arrange for a
residential mortgage loan;
(16)(a) Mortgage loan originator means an individual who for compensation
or gain or in the expectation of compensation or gain (i) takes a residential
mortgage loan application or (ii) offers or negotiates terms of a residential
mortgage loan.
(b) Mortgage loan originator does not include (i) an individual engaged
solely as a loan processor or underwriter except as otherwise provided in
section 45-727, (ii) a person or entity that only performs real estate
brokerage activities and is licensed or registered in accordance with Nebraska
law, unless the person or entity is compensated by a lender, a mortgage broker,
or other mortgage loan originator or by any agent of such lender, mortgage
broker, or other mortgage loan originator, and (iii) a person solely involved
in extensions of credit relating to time-share programs as defined in section
76-1702;
(17) Nationwide Mortgage Licensing System and Registry means a licensing
system developed and maintained by the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators for the licensing
and registration of mortgage loan originators, mortgage bankers, installment
loan companies, and other state-regulated financial services entities and
industries;
(18) Nontraditional mortgage product means any residential mortgage loan
product other than a thirty-year fixed rate residential mortgage loan;
(19) Offer means every attempt to provide, offer to provide, or
solicitation to provide a residential mortgage loan or any form of mortgage
banking business. Offer includes, but is not limited to, all general and public
advertising, whether made in print, through electronic media, or by the
Internet;
(20) Person means an association, joint venture, joint-stock company,
partnership, limited partnership, limited liability company, business
corporation, nonprofit corporation, individual, or any group of individuals
however organized;
(21) Purchase-money mortgage means a mortgage issued to the borrower by
the seller of the property as part of the purchase transaction;
(22) Real estate brokerage activity means any activity that involves
offering or providing real estate brokerage services to the public, including
(a) acting as a real estate salesperson or real estate broker for a buyer,
seller, lessor, or lessee of real property, (b) bringing together parties
interested in the sale, purchase, lease, rental, or exchange of real property,
(c) negotiating, on behalf of any party, any portion of a contract relating to
the sale, purchase, lease, rental, or exchange of real property, other than in
connection with providing financing with respect to any such transaction, (d)
engaging in any activity for which a person engaged in the activity is required
to be registered or licensed as a real estate salesperson or real estate broker
under any applicable law, and (e) offering to engage in any activity or act in
any capacity described in subdivision (a), (b), (c), or (d) of this
subdivision;
(23) Registered bank holding company means any bank holding company
registered with the department pursuant to the Nebraska Bank Holding Company
Act of 1995;
(24) Registered mortgage loan originator means any individual who (a)
meets the definition of mortgage loan originator and is an employee of (i) a
depository institution, (ii) a subsidiary that is (A) wholly owned and
controlled by a depository institution and (B) regulated by a federal banking
agency, or (iii) an institution regulated by the Farm Credit Administration and
(b) is registered with, and maintains a unique identifier through, the
Nationwide Mortgage Licensing System and Registry;
(25) Registrant means a person registered pursuant to section 45-704;
(26) Residential mortgage loan means any loan or extension of credit,
including a refinancing of a contract of sale or an assumption or refinancing
of a prior loan or extension of credit, which is primarily for personal,
family, or household use and is secured by a mortgage, trust deed, or other
equivalent consensual security interest on a dwelling or residential real
estate upon which is constructed or intended to be constructed a dwelling;
(27) Residential real estate means any real property located in this state
upon which is constructed or intended to be constructed a dwelling;
(28) Reverse-mortgage loan means a loan made by a licensee which (a) is
secured by residential real estate, (b) is nonrecourse to the borrower except
in the event of fraud by the borrower or waste to the residential real estate
given as security for the loan, (c) provides cash advances to the borrower
based upon the equity in the borrower's owner-occupied principal residence, (d)
requires no payment of principal or interest until the entire loan becomes due
and payable, and (e) otherwise complies with the terms of section 45-702.01;
-67-
LB474 LB474
2025 2025
(29) Service means accepting payments or maintenance of escrow accounts in
the regular course of business in connection with a residential mortgage loan;
(30) State means any state of the United States, the District of Columbia,
any territory of the United States, Puerto Rico, Guam, American Samoa, the
Trust Territory of the Pacific Islands, the Virgin Islands, or the Northern
Mariana Islands; and
(31) Unique identifier means a number or other identifier assigned by
protocols established by the Nationwide Mortgage Licensing System and Registry.
Sec. 103. Section 45-703, Reissue Revised Statutes of Nebraska, is amended
to read:
45-703 (1) Except as provided in section 45-704, the following shall be
exempt from the Residential Mortgage Licensing Act:
(a) Any depository institution or wholly owned subsidiary thereof;
(b) Any registered bank holding company;
(c) Any insurance company that is subject to regulation by the Department
of Insurance and is either (i) organized or chartered under the laws of
Nebraska or (ii) organized or chartered under the laws of any other state if
such insurance company has a place of business in Nebraska;
(d) Any person licensed to practice law in this state in connection with
activities that are (i) considered the practice of law by the Supreme Court,
(ii) carried out within an attorney-client relationship, and (iii) accomplished
by the attorney in compliance with all applicable laws, rules, ethics, and
standards;
(e) Any person licensed in this state as a real estate broker or real
estate salesperson pursuant to section 81-885.02 who is engaging in real estate
brokerage activities unless such person is compensated by a lender, a mortgage
broker, or other mortgage loan originator or by any agent of such lender,
mortgage broker, or other mortgage loan originator;
(f) Any registered mortgage loan originator when acting for an entity
described in subdivision (24)(a)(i), (ii), or (iii) of section 45-702;
(g) Any sales finance company licensed pursuant to the Nebraska
Installment Loan and Sales Act if such sales finance company does not engage in
mortgage banking business in any capacity other than as a purchaser or servicer
of an installment sales contract, as defined in section 45-335, which is
secured by a mobile home or trailer;
(h) Any trust company chartered pursuant to the Nebraska Trust Company
Act;
(i) Any wholly owned subsidiary of an organization listed in subdivisions
(b) and (c) of this subsection if the listed organization maintains a place of
business in Nebraska;
(j) Any individual who offers or negotiates terms of a residential
mortgage loan with or on behalf of an immediate family member of the
individual;
(k) Any individual who does not repetitively and habitually engage in the
business of a mortgage banker, a mortgage loan originator, or a loan processor
or underwriter, either inside or outside of this state, who (i) makes a
residential mortgage loan with his or her own funds for his or her own
investment, (ii) makes a purchase-money mortgage, or (iii) finances the sale of
a dwelling or residential real estate owned by such individual without the
intent to resell the residential mortgage loan;
(l) Any employee or independent agent of a mortgage banker licensed or
registered pursuant to the Residential Mortgage Licensing Act or exempt from
the act if such employee or independent agent does not conduct the activities
of a mortgage loan originator or loan processor or underwriter;
(m) The United States of America; the State of Nebraska; any other state,
district, territory, commonwealth, or possession of the United States of
America; any city, county, or other political subdivision; and any agency or
division of any of the foregoing;
(n) The Nebraska Investment Finance Authority;
(o) Any individual who is an employee of an entity described in
subdivision (m) or (n) of this subsection and who acts as a mortgage loan
originator or loan processor or underwriter only pursuant to his or her
official duties as an employee of such entity;
(p) A bona fide nonprofit organization which has received a certificate of
exemption pursuant to section 45-703.01; and
(q) Any employee of a bona fide nonprofit organization which has received
a certificate of exemption pursuant to section 45-703.01 if such employee acts
as a mortgage loan originator or mortgage loan processor or underwriter (i)
only with respect to his or her work duties for the nonprofit organization and
(ii) only with respect to residential mortgage loans with terms that are
favorable to the borrower.
(2) It shall not be necessary to negate any of the exemptions provided in
this section in any complaint, information, indictment, or other writ or
proceedings brought under the Residential Mortgage Licensing Act, and the
burden of establishing the right to any exemption shall be upon the person
claiming the benefit of such exemption.
Sec. 104. Section 45-705, Reissue Revised Statutes of Nebraska, is amended
to read:
45-705 (1) No person shall act as a mortgage banker or use the title
mortgage banker in this state unless he, she, or it is licensed as a mortgage
banker, is registered with the department as provided in section 45-704, is
licensed as an installment loan company under the Nebraska Installment Loan and
Sales Act, or is otherwise exempt from the act pursuant to section 45-703.
-68-
LB474 LB474
2025 2025
(2) Applicants for a license as a mortgage banker shall submit to the
department an application on a form prescribed by the department. The
application shall include, but not be limited to, (a) the applicant's corporate
name and no more than one trade name or doing business as designation which the
applicant intends to use in this state, if applicable, (b) the applicant's main
office address, (c) all branch office addresses at which business is to be
conducted, (d) the names and titles of each director and principal officer of
the applicant, (e) the names of all shareholders, partners, or members of the
applicant, (f) a description of the activities of the applicant in such detail
as the department may require, (g) if the applicant is an individual, his or
her social security number, and (h) fingerprints of any principal officer,
director, partner, member, or sole proprietor for submission to the Federal
Bureau of Investigation and any other governmental agency or entity authorized
to receive such information for a state, national, and international criminal
history record information check.
(3) The application for a license as a mortgage banker shall include or be
accompanied by, in a manner as prescribed by the director, (a) the name and
street address in this state of a registered agent appointed by the licensee
for receipt of service of process and (b) the written consent of the registered
agent to the appointment. A post office box number may be provided in addition
to the street address.
(4) The application for a license as a mortgage banker shall be
accompanied by an application fee of four hundred dollars and, if applicable, a
seventy-five-dollar fee for each branch office listed in the application and
any processing fee allowed under subsection (2) of section 45-748.
(5) The application for a license as a mortgage banker shall include or be
accompanied by, in a manner as prescribed by the director, a background
investigation of each applicant by means of fingerprints and a check of his or
her criminal history record information maintained by the Federal Bureau of
Investigation through the Nationwide Mortgage Licensing System and Registry. If
the applicant is a partnership, association, corporation, or other form of
business organization, the director shall require a criminal history record
information check on each member, director, or principal officer of each
applicant or any individual acting in the capacity of the manager of an office
location. Fingerprints of any principal officer, director, partner, member, or
sole proprietor shall be submitted to the Federal Bureau of Investigation and
any other governmental agency or entity authorized to receive such information
for a state, national, and international criminal history record information
check. The applicant shall be responsible for the direct costs associated with
criminal history record information checks performed. The information obtained
thereby may be used by the director to determine the applicant's eligibility
for licensing under this section. Except as authorized pursuant to subsection
(2) of section 45-748, receipt of criminal history record information by a
private person or entity is prohibited.
(6) In order to reduce the points of contact which the Federal Bureau of
Investigation may have to maintain for purposes of subsection (5) of this
section, the director may use the Nationwide Mortgage Licensing System and
Registry as a channeling agent for requesting information from and distributing
information to the United States Department of Justice or any other
governmental agency.
(7) A license as a mortgage banker granted under the Residential Mortgage
Licensing Act shall not be assignable.
(8) An application is deemed filed when accepted as substantially complete
by the director.
Sec. 105. Section 45-729, Reissue Revised Statutes of Nebraska, is amended
to read:
45-729 (1) The director shall not issue a mortgage loan originator license
unless the director makes at a minimum the following findings:
(a) The applicant has never had a mortgage loan originator license revoked
in any governmental jurisdiction, except that a subsequent formal vacation of
such revocation shall not be deemed a revocation;
(b) The applicant has not been convicted of, or pleaded guilty or nolo
contendere or its equivalent to, in a domestic, foreign, or military court:
(i) A misdemeanor under any state or federal law which involves dishonesty
or fraud or which involves any aspect of the business of a mortgage banker,
depository institution, or installment loan company unless such individual has
received a pardon for such conviction or such conviction has been expunged,
except that the director may consider the underlying crime, facts, and
circumstances of a pardoned or expunged conviction in determining the
applicant's eligibility for a license pursuant to subdivision (c) of this
subsection; or
(ii) Any felony under state or federal law unless such individual has
received a pardon for such conviction or such conviction has been expunged,
except that the director may consider the underlying crime, facts, and
circumstances of a pardoned or expunged conviction in determining the
applicant's eligibility for a license pursuant to subdivision (c) of this
subsection;
(c) The applicant has demonstrated financial responsibility, character,
and general fitness such as to command the confidence of the community and to
warrant a determination that the mortgage loan originator will operate
honestly, fairly, and efficiently within the purposes of the Residential
Mortgage Licensing Act. For purposes of this subsection, an individual has
shown that he or she is not financially responsible when he or she has shown a
-69-
LB474 LB474
2025 2025
disregard in the management of his or her own financial condition. The director
may consider the following factors in making a determination as to financial
responsibility:
(i) The applicant's current outstanding judgments except judgments solely
as a result of medical expenses;
(ii) The applicant's current outstanding tax liens or other government
liens and filings;
(iii) The applicant's foreclosures within the past three years; and
(iv) A pattern of seriously delinquent accounts within the past three
years by the applicant;
(d) The applicant has completed the prelicensing education requirements
described in section 45-730;
(e) The applicant has passed a written test that meets the test
requirement described in section 45-731; and
(f) The applicant is covered by a surety bond as required pursuant to
section 45-724 or a supplemental surety bond as required pursuant to section
45-338 45-1007.
(2)(a) If the director determines that a mortgage loan originator license
application should be denied, the director shall notify the applicant in
writing of the denial and of the reasons for the denial.
(b) The director shall not deny an application for a mortgage loan
originator license because of the failure to submit information required under
the act or rules and regulations adopted and promulgated under the act without
first giving the applicant an opportunity to correct the deficiency by
supplying the missing information.
(c) If an applicant for a mortgage loan originator license does not
complete his or her license application and fails to respond to a notice or
notices from the department to correct the deficiency or deficiencies for a
period of one hundred twenty days or more after the date the department sends
the initial notice after initial filing of the application, the department may
deem the application as abandoned and may issue a notice of abandonment of the
application to the applicant in lieu of proceedings to deny the application.
(d) A decision of the director denying a mortgage loan originator license
application pursuant to the Residential Mortgage Licensing Act may be appealed.
The appeal shall be in accordance with the Administrative Procedure Act and
rules and regulations adopted and promulgated by the department.
(3) A mortgage loan originator license shall not be assignable.
Sec. 106. Section 45-734, Reissue Revised Statutes of Nebraska, is amended
to read:
45-734 (1) A mortgage loan originator whose license is placed on inactive
status under this section shall not act as a mortgage loan originator in this
state until such time as the license is reactivated.
(2) The department shall place a mortgage loan originator license on
inactive status upon the occurrence of one of the following:
(a) Upon receipt of a notice from either the licensed mortgage banker,
registrant, installment loan company, or mortgage loan originator that the
mortgage loan originator's relationship as an employee or independent agent of
a licensed mortgage banker or installment loan company has been terminated;
(b) Upon the cancellation of the employing licensed mortgage banker's
license pursuant to section 45-742 or upon the cancellation of the employing
installment loan company's license pursuant to subsection (5) subdivision (3)
(b) of section 45-338 45-1033 for failure to maintain the required surety bond;
(c) Upon the voluntary surrender of the employing licensed mortgage
banker's license pursuant to section 45-742 or upon the voluntary surrender of
the employing installment loan company's license pursuant to section 45-341
45-1032;
(d) Upon the expiration of the employing licensed mortgage banker's
license pursuant to section 45-742 or upon the expiration of the employing
installment loan company's license pursuant to subsection (3) subdivision (3)
(a) of section 45-340 45-1033 if such mortgage loan originator has renewed his
or her license pursuant to section 45-732;
(e) Upon the revocation or suspension of the employing licensed mortgage
banker's license pursuant to section 45-742 or upon the revocation or
suspension of the employing installment loan company's license pursuant to
subsection (2) (1) of section 45-341 45-1033; or
(f) Upon the cancellation, surrender, or expiration of the employing
registrant's registration with the department.
(3) If a mortgage loan originator license becomes inactive under this
section, the license shall remain inactive until the license expires, the
licenseholder surrenders the license, the license is revoked or suspended
pursuant to section 45-742, or the license is reactivated.
(4) Except as provided in subsection (5) of this section, a mortgage loan
originator who holds an inactive mortgage loan originator license may renew
such inactive license if he or she remains otherwise eligible for renewal
pursuant to section 45-732 except for being covered by a surety bond pursuant
to subdivision (1)(f) of section 45-729. Such renewal shall not reactivate the
license.
(5) A mortgage loan originator who holds an inactive mortgage loan
originator license that has been renewed one time may not renew such inactive
license for a second annual licensing period unless (a) the inactive license
was reactivated after such inactive license was renewed or (b) the mortgage
loan originator demonstrates good cause to the director to allow renewal of the
inactive license for an additional annual licensing period.
-70-
LB474 LB474
2025 2025
(6) The department has the authority to reactivate a mortgage loan
originator license upon receipt of a notice pursuant to section 45-735 that the
mortgage loan originator licensee has been hired as a mortgage loan originator
by a licensed mortgage banker, registrant, or installment loan company and if
such mortgage loan originator meets the conditions for licensing at the time
the reactivation notice is received, including, but not limited to, coverage by
a surety bond pursuant to subdivision (1)(f) of section 45-729.
Sec. 107. Section 45-804, Reissue Revised Statutes of Nebraska, is amended
to read:
45-804 A credit services organization, a salesperson, an agent, or a
representative of a credit services organization, or an independent contractor
who sells or attempts to sell the services of a credit services organization
shall not:
(1) Charge a buyer or receive from a buyer money or other valuable
consideration before completing performance of all services, other than those
described in subdivision (2) of this section, which the credit services
organization has agreed to perform for the buyer unless the credit services
organization has obtained a surety bond or established and maintained a surety
account as provided in section 45-805;
(2) Charge a buyer or receive from a buyer money or other valuable
consideration for obtaining or attempting to obtain an extension of credit that
the credit services organization has agreed to obtain for the buyer before the
extension of credit is obtained;
(3) Charge a buyer or receive from a buyer money or other valuable
consideration solely for referral of the buyer to a retail seller who will or
may extend credit to the buyer if the credit that is or will be extended to the
buyer is substantially the same as that available to the general public;
(4) Make or use a false or misleading representation in the offer or sale
of the services of a credit services organization, including (a) guaranteeing
to erase bad credit or words to that effect unless the representation clearly
discloses that this can be done only if the credit history is inaccurate or
obsolete and (b) guaranteeing an extension of credit regardless of the person's
previous credit problem or credit history unless the representation clearly
discloses the eligibility requirements for obtaining an extension of credit;
(5) Engage, directly or indirectly, in a fraudulent or deceptive act,
practice, or course of business in connection with the offer or sale of the
services of a credit services organization;
(6) Make or advise a buyer to make a statement with respect to a buyer's
credit worthiness, credit standing, or credit capacity that is false or
misleading or that should be known by the exercise of reasonable care to be
false or misleading to a consumer reporting agency or to a person who has
extended credit to a buyer or to whom a buyer is applying for an extension of
credit;
(7) Advertise or cause to be advertised, in any manner whatsoever, the
services of a credit services organization without filing a registration
statement with the Secretary of State under section 45-806 unless otherwise
provided by the Credit Services Organization Act; or
(8) Notwithstanding any other provision of law, charge any brokerage fees
or any other fees or charges whatsoever in connection with a loan governed by
the Nebraska Installment Loan and Sales Act.
Sec. 108. Section 69-2103, Revised Statutes Cumulative Supplement, 2024,
is amended to read:
69-2103 For purposes of the Consumer Rental Purchase Agreement Act:
(1) Advertisement means a commercial message in any medium that aids,
promotes, or assists directly or indirectly a consumer rental purchase
agreement but does not include in-store merchandising aids such as window signs
and ceiling banners;
(2) Cash price means the price at which the lessor would have sold the
property to the consumer for cash on the date of the consumer rental purchase
agreement for the property;
(3) Consumer means a natural person who rents property under a consumer
rental purchase agreement;
(4) Consumer rental purchase agreement means an agreement which is for the
use of property by a consumer primarily for personal, family, or household
purposes, which is for an initial period of four months or less, whether or not
there is any obligation beyond the initial period, which is automatically
renewable with each payment, and which permits the consumer to become the owner
of the property. A consumer rental purchase agreement in compliance with the
act shall not be construed to be a lease or agreement which constitutes a
credit sale as defined in 12 C.F.R. 1026.2(a)(16), as such regulation existed
on January 1, 2024, and 15 U.S.C. 1602(h), as such section existed on January
1, 2024, or a lease which constitutes a consumer lease as defined in 12 C.F.R.
1013.2, as such regulation existed on January 1, 2024. Consumer rental purchase
agreement does not include:
(a) Any lease for agricultural, business, or commercial purposes;
(b) Any lease made to an organization;
(c) A lease or agreement which constitutes an installment sale or
installment sales contract as defined in section 45-335;
(d) A security interest as defined in subdivision (35) of section 1-201,
Uniform Commercial Code; and
(e) A home solicitation sale as defined in section 69-1601;
(5) Consummation means the occurrence of an event which causes a consumer
to become contractually obligated on a consumer rental purchase agreement;
-71-
LB474 LB474
2025 2025
(6) Department means the Department of Banking and Finance;
(7) Lease payment means a payment to be made by the consumer for the right
of possession and use of the property for a specific lease period but does not
include taxes imposed on such payment;
(8) Lease period means a week, month, or other specific period of time,
during which the consumer has the right to possess and use the property after
paying the lease payment and applicable taxes for such period;
(9) Lessor means a person who in the ordinary course of business operates
a commercial outlet which regularly leases, offers to lease, or arranges for
the leasing of property under a consumer rental purchase agreement;
(10) Property means any property that is not real property under the laws
of this state when made available for a consumer rental purchase agreement; and
(11) Total of payments to acquire ownership means the total of all charges
imposed by the lessor and payable by the consumer as a condition of acquiring
ownership of the property. Total of payments to acquire ownership includes
lease payments and any initial nonrefundable administrative fee or required
delivery charge but does not include taxes, late charges, reinstatement fees,
or charges for optional products or services.
Sec. 109. Section 76-2711, Reissue Revised Statutes of Nebraska, is
amended to read:
76-2711 Homeowner means the owner of a residence in foreclosure, including
a vendee under a contract for deed to real property as defined in section
45-335 45-1002.
Sec. 110. Section 4, Legislative Bill 527, One Hundred Ninth Legislature,
First Session, 2025, is amended to read:
Sec. 4. (1) No later than January 1, 2026, the Director of Insurance shall
establish a schedule for the collection of a tax of not to exceed six percent
of the gross amount of non-medicare direct writing premiums written under a
health maintenance organization certificate of authority pursuant to section
44-32,115, to the extent not preempted by federal law, during the current year
for business done in the state. The director shall remit the tax paid under
this section to the State Treasurer. The State Treasurer shall annually credit
the entirety of the tax remitted to the Medicaid Access and Quality Fund.
(2) No later than August 1, 2025, the Department of Health and Human
Services shall amend the medicaid state plan or file other federal authorizing
documents necessary to receive federal financial participation for the Medicaid
Access and Quality Act.
(3) The tax established by this section shall be effective January 1,
2026, and applies to premiums received during the current calendar year and
each year thereafter.
Sec. 111. Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36,
37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 51, 53, 54, 55, 56, 57, 58,
59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78,
79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98,
99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 113, and 114 of this act
become operative on October 1, 2025. The other sections of this act become
operative on their effective date.
Sec. 112. Original sections 44-502 and 44-4109.01, Reissue Revised
Statutes of Nebraska, and section 4, Legislative Bill 527, One Hundred Ninth
Legislature, First Session, 2025, are repealed.
Sec. 113. Original sections 8-319, 8-330, 8-601, 8-820.01, 8-2701,
8-2702, 8-2703, 8-2704, 8-2705, 8-2706, 8-2707, 8-2708, 8-2709, 8-2710, 8-2711,
8-2712, 8-2713, 8-2714, 8-2715, 8-2716, 8-2717, 8-2718, 8-2719, 8-2720, 8-2721,
8-2722, 8-2723, 8-2725, 8-2726, 8-2727, 8-2728, 8-2731, 8-2732, 8-2733, 8-2734,
8-2736, 8-2737, 8-2738, 8-2739, 8-2740, 8-2741, 8-2742, 8-3027, 44-1703,
45-101.04, 45-1,110, 45-334, 45-335, 45-336, 45-337, 45-338, 45-339, 45-340,
45-341, 45-342, 45-343, 45-344, 45-345, 45-347, 45-348, 45-350, 45-351, 45-352,
45-353, 45-355, 45-356, 45-702, 45-703, 45-705, 45-729, 45-734, 45-804, and
76-2711, Reissue Revised Statutes of Nebraska, sections 8-602, 8-2729, 8-2730,
8-2735, 8-3025, 45-346, 45-354, and 69-2103, Revised Statutes Cumulative
Supplement, 2024, and section 8-2724, Revised Statutes Cumulative Supplement,
2024, as amended by section 18, Legislative Bill 251, One Hundred Ninth
Legislature, First Session, 2025, are repealed.
Sec. 114. The following sections are outright repealed: Sections 8-2743,
8-2744, 8-2745, 8-2746, 8-2747, 45-351.01, 45-1001, 45-1004, 45-1007, 45-1008,
45-1009, 45-1010, 45-1011, 45-1012, 45-1013, 45-1014, 45-1015, 45-1016,
45-1017, 45-1019, 45-1020, 45-1021, 45-1022, 45-1023, 45-1024, 45-1025,
45-1026, 45-1027, 45-1028, 45-1029, 45-1030, 45-1031, 45-1032, 45-1033,
45-1033.02, 45-1034, 45-1035, 45-1036, 45-1037, 45-1038, 45-1039, 45-1040,
45-1041, 45-1042, 45-1043, 45-1044, 45-1045, 45-1046, 45-1047, 45-1048,
45-1049, 45-1050, 45-1051, 45-1052, 45-1053, 45-1054, 45-1055, 45-1056,
45-1057, 45-1058, 45-1059, 45-1060, 45-1061, 45-1062, 45-1063, 45-1064,
45-1065, 45-1066, 45-1067, 45-1068, 45-1069, and 45-1070, Reissue Revised
Statutes of Nebraska, and sections 45-346.01, 45-1002, 45-1003, 45-1005,
45-1006, 45-1018, and 45-1033.01, Revised Statutes Cumulative Supplement, 2024.
-72-