On July 31, NYDFS published a notice of proposed rulemaking in the New York State Register. The proposed rule would implement legislation related to the supervision, regulation, and licensing of private student loan servicers passed in March as part of the state’s FY 2020 budget. As previously covered by InfoBytes, unless exempt from certain provisions, student loan servicers must comply…
Last month, the Virginia Bureau of Financial Institutions added its money order seller and money transmitter license to the NMLS, leaving just a couple of state agencies that have yet to add their money services business licenses to the system. Existing licensees must transition their licenses to the system by September 1, 2019 (a very…
On July 30, the New Jersey governor signed S1149 to, among other things, establish the Office of the Student Loan Ombudsman within the Department of Banking and Insurance and provide licensing requirements for student loan servicers. Notably, federal or state chartered banks, savings banks, savings and loan associations, and credit unions, as well as their wholly owned…
On July 17, the North Carolina attorney general announced a lawsuit filed against multiple debt collection entities and their owner for allegedly collecting or attempting to collect on consumer debts in North Carolina without filing the appropriate registration or obtaining the necessary permits to operate as a debt collection agency in the state. According to the complaint, the…
On July 15, the Rhode Island governor signed HB 5847, which adds virtual currency to the existing electronic money transmission and sale of check license law and adds additional provisions clarifying the licensing process. Specifically, the bill renames Chapter 19-14.3 of Rhode Island’s General Laws titled, “Sale of Checks and Electronic Money Transfers” to “Currency Transmission”…
On June 28, the Alaska governor signed HB 104, which provides limited exemptions from the state’s licensing requirements for qualifying mortgage lenders, mortgage brokers, and mortgage loan originators. Specifically, the amended exemptions include (i) bona fide nonprofit organizations, as well as employees acting as mortgage loan originators for public or charitable purposes; (ii) individuals operating as…
On June 27, the Delaware Governor signed HB 199, which, among other provisions, authorizes the Delaware State Bank Commissioner to participate in a multi-state automated licensing system that will assist in the facilitation of the application and licensing process for mortgage loan brokers, licensed lenders, mortgage loan originators, money transmitters, check cashers, and motor vehicle sales…
On June 20, the Maine governor signed LD 995, which establishes a student loan bill of rights to license and regulate student loan servicers. Notably, supervised financial organizations, financial institution holding companies, mutual holding companies, and their wholly owned subsidiaries are exempt from the entire requirements of the bill; and licensed banks, credit unions, and their…
On June 7, the Hawaii governor signed HB 988, which provides 120-day temporary authority for certain mortgage loan originators to originate loans in Hawaii without a state license. Pursuant to Section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, the bill allows a federally-registered mortgage loan originator (MLO) holding an MLO license in…
On July 1, the South Dakota Division of Banking will join more than 25 other state agencies in requiring that applicants for certain licenses submit electronic surety bonds via the NMLS in lieu of paper bonds. Current South Dakota licensees (as identified below) will have until the end of 2020 to convert their paper bonds…
On June 24, the Conference of State Bank Supervisors (CSBS) announced that financial regulators from 23 states have now agreed to a multi-state compact that will offer a streamlined licensing process for money services businesses (MSB), including fintech firms. As previously covered by InfoBytes, in February 2018, the original agreement included seven states. According to the announcement, 15…
On June 10, the Texas governor signed SB 2330, which provides, among other things, for a federally-registered mortgage loan originator (MLO) who does not hold a state license to have temporary authority to act as a state-licensed MLO for a period not to exceed 120 days while their state MLO license application is pending. Subject to…
APPROVED co-founders Katy Ryan and Tim Lange preview Mogy — our proprietary licensing technology — and demonstrate how the system makes the licensing process easier and more efficient. [Checkpoint Webcast]
Many license applications require fingerprints from officers, directors, natural person owners, and other individuals named in the application for purposes of running FBI and/or state criminal history background checks. Fingerprinting requirements and processes vary by state, but because so many of the players in the financial services industry are subject to licensing in California, it…
A handful of license applications require personal financial statements from officers, directors, and certain other individuals named in the application. The requirement is certainly one of the most significant pain points when it comes to the license application process, as individuals are often (understandably) sensitive about disclosing their finances. For this reason, the requirement must…
On May 30, the Commonwealth Court of Pennsylvania reversed an order by the Pennsylvania Department of Banking and Securities Commission (Commission) issued against a mobile giving app and two of its executives (petitioner), holding that the petitioner was not required to be licensed by the Commission because it was not transmitting money under the court’s interpretation…
While nearly every state requires a license to act as a mortgage servicer, the requirements differ greatly. In some states, the license is a stand-alone mortgage servicer license. In others, a general mortgage license covers the activity. Further still, mortgage servicers trigger some state (and even city) collection agency licensing laws. And mortgage servicer licensing…
On May 22, the Minnesota governor signed HF 990, which exempts manufactured home dealers and salespersons from the state’s licensing requirements for residential mortgage originators. Under the bill, manufactured home dealers or salespersons qualify for the exemption if they (i) perform only clerical or support duties in connection with assisting a consumer in filling out a…
On May 15, the New Hampshire governor signed HB 649 to, among other things, amend the state licensing requirements for nondepository mortgage bankers, brokers, and servicers, as well as pawnbrokers and moneylenders. Specifically, licensing applicants must file with the banking commissioner a written verified application through the Nationwide Multistate Licensing System and Registry (NMLS) using the NMLS…
On May 13, the Colorado governor signed SB19-002, the “Colorado Student Loan Servicers Act,” which requires an entity that services a student education loan owned by a Colorado resident to be licensed by the state. Under the bill, “student loan servicer” is generally defined as a person that receives a scheduled periodic payment from a student…