Maryland approves bills on debt settlement services, mortgage lenders, and credit service businesses

On April 18, the Maryland Governor approved several bills concerning debt settlement service providers, mortgage lenders, and credit service businesses. Under HB 59, registrants providing debt settlement services are required to apply for a license or renewal and obtain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry (NMLS) on or after…

Maryland charges title company with making unlicensed, usurious consumer loans

On April 11, the Maryland Attorney General announced an administrative proceeding taken against a title company, its owner, and related businesses for allegedly making unlicensed and usurious title loans secured by consumers’ motor vehicles. According to the AG’s charges, the defendants, among other things, allegedly engaged in unfair or deceptive trade practices by offering consumers high-interest, short-term…

NYDFS denies virtual currency license for BSA/AML compliance deficiencies

On April 10, NYDFS announced that it denied a company’s applications to engage in virtual currency business and money transmission activity in New York due to the company’s alleged deficiencies in BSA/AML and Office of Foreign Assets Control (OFAC) compliance requirements, capital requirements, and token and product launches. According to the denial letter, the company applied for a…

Arkansas establishes GAP waiver requirements

On April 8, the Arkansas governor signed HB 1672, which provides a framework within which guaranteed asset protection (GAP) waivers may be offered in the state. Among other provisions, the act (i) clarifies that GAP waivers are not insurance and are exempt from the state’s insurance laws; (ii) states that persons who market, sell, or offer…

Minnesota clarifies definition of “sales finance company” for licensing purposes

On April 5, the Minnesota Department of Commerce (Department) issued guidance clarifying the types of entities meeting the definition of “sales finance company” under Minnesota law for purposes of whether a license is needed to conduct business. The guidance requires “any company who purchases motor vehicle retail installment contracts from retail sellers located in Minnesota, and applies…

West Virginia exempts payment processing from some licensing requirements

On March 25, the West Virginia governor signed SB 603, which adds exemptions from the currency exchange licensing requirements. Among other things, the bill exempts from the state’s currency exchange licensing requirements a person or persons operating a payment system that provides processing, clearing, or settlement services in connection with wire transfers, debit/credit card transactions, ACH…

Kentucky amends consumer loan company requirements

On March 26, the Kentucky governor signed HB 285, which amends licensing procedures and requirements for consumer loan companies. Specifically, HB 285, among other things:(i) increases application fees; (ii) establishes financial requirements for applicants and licensees; (iii) amends the process for approving applications and appealing denials; (iv) restricts licensing eligibility for individuals who previously had a…

Utah creates regulatory sandbox

On March 25, the Utah governor signed HB 378, which creates a state regulatory sandbox program through the state’s Department of Commerce (Department) that allows participants to temporarily test innovative financial products or services on a restricted basis without requiring a license or authorization to act under Utah law. Under the program, approved applicants will have…

Kentucky creates separate licenses for check cashing and deferred deposit service businesses

On March 19, the Kentucky governor signed S.B. 145, which establishes separate licenses for check cashing and deferred deposit service businesses. In addition, S.B. 145 creates a new section that allows the Department of Financial Institutions commissioner to (i) require license applications and certain other regulatory filings to also be filed with the State Regulatory Registry…

Tim Lange joins CMBA webcast on 2019 NMLS conference highlights (Thursday, Mar. 28, 2019)

Tim Lange, APPROVED Founder and COO, will join the upcoming California Mortgage Bankers Association Mortgage Quality & Compliance Committee webinar discussing the recent 2019 NMLS Conference in Orlando. Tim will be joined by Rosalyn Hardy (President & CEO, QCP Systems) to provide coverage of hot topics coming out of the event and mortgage call reports.…

APPROVED and Buckley host panel “‘So you want to form a joint venture’ — Licensing strategies for successful JVs” at RESPRO26 (Wednesday, Mar. 27, 2019)

Recent changes in regulatory supervision practices have once again made joint ventures an attractive idea to many companies. Join Dan Ladd (Director, APPROVED) and Heidi Bauer (Counsel, Buckley LLP) at the RESPRO26 conference in New Orleans to learn about the rules of the road that still come into play with this model despite these recent…

Nebraska amends mortgage licensing law

On March 7, the Nebraska governor approved LB 355, which amends various sections of the state’s financial laws, including the Nebraska Residential Mortgage Licensing Act (RMLA). Among other things, the RMLA is being amended to (i) provide requirements for the submission of fingerprints for specified principals of mortgage firm applications; (ii) adopt the transitional licensing…