Meeting in Frederiksted, the Senate Financial Services, Infrastructure and Consumer Affairs Committee voted out a bill adopting federally mandated mortgage licensing rules, along with three other bills Wednesday.
The bill, entitled the "Virgin Islands Secure and Fair Enforcement for Mortgage Licensing Act,’ or S.A.F.E., is part of an effort to establish uniform rules for mortgage lenders nationwide and mirrors code enacted in 49 states so far.
Among more arcane and technical provisions, the bill sets up standard rules for licensing mortgage lenders. No one convicted of any felony in the last seven years, or ever convicted of certain financial felonies, could be a mortgage lender, for instance. Background checks would be mandatory, and once initial screening was performed, lenders would have to take standardized educational classes, pass a standard national test and meet certain bonding requirements.
Passing some form of S.A.F.E. is mandated by the federal government, John McDonald, director of the Division of Banking and Insurance under the Office of the Lt. Governor, told the committee. In fact, the U.S. Department of Housing and Urban Development has set a deadline of July 31, which has already passed, McDonald said.
Without a law in place in each state by that date, the HUD secretary is supposed to establish a system itself.
"It will force HUD to establish in the state an overlaying regulatory regime to both license and regulate, including enforcement authority over state licensees," he said. "If the state demonstrates an unwillingness to act … it could set the stage for the future erosion of state authority. In fact, Congress is already meeting to review the states’ regulatory structure."
Voting to send the bill out of committee for consideration by the Rules and Judiciary Committee were Sens. Neville James, Terrence "Positive" Nelson, Nereida "Nellie" Rivera-O’Reilly and Michael Thurland. Sen. Adlah "Foncie" Donastorg voted no. Absent were Sens. Wayne James and Celestino White.
The committee also approved a bill establishing a new, separate revolving fund to pay National Guard members, to be funded up to $200,000 when funds are available.
"This is going to pay our men and women in the Guard," Thurland said. "It sets up a revolving fund so there is money to make sure when the Guard is called out there is a fund to at least pay them on time."
When the governor mobilized the V.I. National Guard for state purposes, such as after a hurricane, the local government is responsible for paying them, while under most circumstances, most of the Guard’s expenses are paid by the federal government. But as these emergencies are not part of the regular budgeting process, at times there have been difficulties in paying them and Guards members have worked without a paycheck, sometimes waiting months or even years to be paid for that time. Establishing the fund will mean they get paid right away, Thurland said.
In other business, the committee forwarded a bill to allow real estate agents and other professionals to file deeds and other land records electronically, with an electronic signature, rather than only in person, by hand. And it approved another bill to allow members of the V.I. Lottery Commission to continue to serve after their terms have expired until a replacement is confirmed. At present, the terms of all the appointed members of that commission have expired, leaving only two ex-officio members and no quorum.
A bill establishing an amnesty waiving interest and penalties on gross receipts taxes was passed too, and is discussed in more detail in a separate article in the Source.
Voting to send these four bills out of committee for consideration by the Rules and Judiciary Committee were Sens. Adlah "Foncie" Donastorg, Neville James, Terrence "Positive" Nelson, Nereida "Nellie" Rivera-O’Reilly and Michael Thurland. Absent were Sens. Wayne James and Celestino White.
A bill to establish a single fund from which to pay all government agencies’ utility bills was held in committee pending amendments.
