January 30, 2024 - Introduced by Representatives Rettinger, O’Connor and Myers, cosponsored by Senators Feyen, Tomczyk and Taylor. Referred to Committee on Financial Institutions.
AB1031,,22An Act to repeal 215.03 (6), 215.21 (2), 215.25 and 215.26 (5); and to amend 215.02 (11) (a), 215.02 (14) (a), 215.13 (39), 215.21 (5) (a), 215.21 (14), 215.21 (15), 215.21 (28), 215.33 (4), 215.51 (2) and 215.71 (2) of the statutes; relating to: operations of state-chartered savings and loan associations. AB1031,,33Analysis by the Legislative Reference Bureau This bill makes changes relating to the authorized activities of state-chartered savings and loan (S&L) associations.
Under current law, the Division of Banking (division) in the Department of Financial Institutions regulates S&L associations. Current law specifies various authorized activities, restrictions, and requirements applicable to S&L associations.
The bill makes the following changes related to these authorized activities, restrictions, and requirements:
1. Current law authorizes an S&L association to make mortgage loans but limits the lending area of an S&L association to a radius of 100 miles of the S&L association’s home office. In general, an S&L association may establish branch offices within its lending area. The bill eliminates the lending-area restriction on an S&L association and, consequently, the limitation that a branch office must be located within the lending area.
2. Current law limits an S&L association’s aggregate of mortgage loans to a single borrower to 10 percent of the association’s aggregate of savings accounts or its net worth, whichever is less. The bill instead limits the aggregate of mortgage loans to a single borrower to 10 percent of the S&L association’s assets.
3. Current law authorizes an S&L association to sell mortgage loans and also to service these loans for the purchaser under a servicing agreement, but the division may establish a limit on the aggregate of loans sold in a calendar year. The bill eliminates the division’s authority to establish limits on the aggregate of mortgage loans sold.
4. Current law authorizes an S&L association to make or invest its funds in certain secured loans originated and serviced by or through a federally insured financial institution, in an aggregate amount not exceeding 10 percent of the S&L association’s assets. This bill increases the permissible aggregate amount from 10 percent to 20 percent of the S&L association’s assets.
5. Current law requires an S&L association to file an annual report with the division that contains specified information, including a statement of condition and a statement of operations. The bill eliminates the requirement that an S&L association file an annual report with the division.