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Bill

Bill

SB 2712

Small Loan Regulatory Law; authorize licensee to charge fee for nonrecording insurance in lieu of recording cost.

2026 Regular Session Introduced by Robert Johnson

Mississippi law now allows small loan lenders to charge nonrecording insurance fees instead of recording costs, affecting borrower expenses and lender revenue structures.

Approved by Governor
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Bill Summary · SB 2712

Legislative bill overview

SB 2712 modifies Mississippi's small loan regulatory framework to allow licensed lenders to charge a fee for nonrecording insurance as an alternative to paying actual recording costs. This change permits lenders to offer borrowers an option between paying standard recording fees or purchasing an insurance product that covers the recording process.

Why is this important

Small loan regulations directly affect borrowing costs for low-to-moderate income consumers who rely on these products. This bill alters the fee structure for a specific service, potentially changing what borrowers pay and creating new revenue streams for lenders through insurance products rather than traditional recording fees.

Potential points of contention

  • Consumer cost impact: Whether nonrecording insurance fees will ultimately cost borrowers more or less than standard recording costs, and if comparison shopping between options is practical
  • Insurance product clarity: Questions about what nonrecording insurance actually covers, claim procedures, and whether consumers fully understand they're purchasing insurance rather than paying a transparent fee
  • Market competition: Concern that allowing alternative fee structures could reduce price transparency and make it harder for consumers to compare loan products across lenders

Compiled from official sources — confirm details with the bill’s official record.

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