Bill description: HB 585 amends Chapter 46, Title 28, Idaho code related to the administration of regulated consumer credit transactions.
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market?
HB 585 amends several sections of state law to require anyone seeking a state license to work as a regulated lender to file it through the "nationwide mortgage licensing system and registry" or "NMLSR." Right now, they can file an application through the NMLSR or, alternately, "in a manner prescribed by the administrator" in the Idaho Department of Finance. The change called for here places Idahoans working in this industry under the jurisdiction of an entity not under the control or oversight of the Idaho legislature.
We understand that the NMLSR is already available as an optional licensing system and that it is chosen by a majority of licensees in Idaho. We are sympathetic to the department's desire to have only one rather than two licensing processes in place. We cannot, however, endorse the mandatory use of regional, national, or international regulatory frameworks that place Idahoans under the authority or jurisdiction of lawmakers or regulators who are neither elected nor appointed to their positions by Idaho voters or Idaho officials.
Analyst's Note: HB 585 is similar to HB 400, introduced earlier this year, but improves upon it by removing some negative elements.
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