1.House Bill 1466: Expanded Regulatory Oversight and New Financial Standards

H.B. 1466 grants the Arkansas Securities Commissioner broader authority to issue rules under the FMLA, including the power to temporarily suspend sections of the Code when necessary to protect public safety. The bill also updates surety bond requirements for licensed mortgage brokers, bankers, and servicers. Claimants may now bring a suit directly on a licensee’s bond, and the Commissioner may bring a suit on a claimant’s behalf.

In addition to bond updates, H.B. 1466 raises the financial bar for mortgage servicers by requiring a minimum net worth of $100,000. Licensed servicers must maintain sufficient liquidity and submit audited financial statements to the Commissioner within ninety days after the end of each fiscal year.

The bill further establishes prudential standards for covered institutions, requiring programs for corporate governance, risk management, information security, and business continuity. Specifically, mortgage companies must implement information security programs that include regular risk assessments, encryption practices, multi-factor authentication, and written incident response plans. However, institutions maintaining customer information for fewer than 5,000 consumers are exempt from these enhanced security requirements.

2.House Bill 1184: New Restrictions on Mortgage Trigger Leads

On the same day, Arkansas enacted H.B. 1184, targeting consumer privacy in mortgage lead generation practices. The bill defines “consumer report” and “mortgage trigger lead,” specifying that a trigger lead occurs when a consumer report is generated in response to a credit inquiry, not when obtained by an existing creditor.

H.B. 1184 amends Arkansas Code § 23-39-513 to prohibit the misleading or deceptive use of mortgage trigger leads. Among other requirements, companies contacting consumers based on trigger leads must clearly disclose:

♦ The loan officer’s name,
♦ The mortgage broker or mortgage banker the loan officer represents,
♦ How the consumer’s contact information was obtained,
♦ That the solicitation is based on purchased personal information,
♦ That the loan officer is not affiliated with the consumer’s original creditor, and
♦ That the purpose of the communication is to solicit new business.

Additionally, mortgage companies are prohibited from soliciting consumers who have opted out of prescreened offers or who are listed on the National Do-Not-Call Registry. The bill also bans knowingly using mortgage trigger lead information in violation of the new state requirements or the federal Fair Credit Reporting Act (“FCRA“).

3.Effective Date

Both H.B. 1466 and H.B. 1184 will take effect on August 7, 2025. Mortgage brokers, bankers, and servicers operating in Arkansas should begin reviewing and updating their compliance programs now to ensure they are ready to meet the new standards.