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The “Financial Services State Legislative Update” panel is part of the NMLS 2023 Annual Conference & Training in Phoenix, AZ.
Periodic reporting is often mandatory to maintain licensure, and most annual reports covering the previous calendar year are due on or before March 31.
The new legislation eases licensing burdens by allowing licensed professionals to apply for and be granted a license to work provided they meet certain criteria.
The strategic combination responds to demand from innovative companies and financial institutions for forward-looking regulatory and enforcement advice.
The changes provide for the licensure, regulation, and oversight of student loan servicers by the California agency.
An EWA product offered as a no-interest, no-fee, non-recourse product does not fall within the definition of “consumer loan” under Arizona Revised Statutes § 6-601(7),
The amendments, among other things, allow licensed companies to permit licensed mortgage loan originators to work from their residence without licensing the residence as a branch.
Certain peer-to-peer lending services and interest-bearing accounts were found to violate state law and cannot be offered in California.
The New York agency noted that this requirement also applies in situations where any portion of the activity will be handled by a third party.
Starting January 1, 2023, the California agency will begin approving applications under the Debt Collection Licensing Act.
The Connecticut Department of Banking also ordered the firm to cease and desist from collection activity for operating without a valid license.
The proposed fees will cover the costs and expenses associated with NYDFS’s oversight of licensees engaged in virtual currency business activity.
The panel discussion on Wednesday, Dec. 7 is part of the Innovations in Lending, Alternative Financing, Fintech & Private Credit Summit 2022.
On November 18, the California Department of Financial Protection and Innovation (DFPI) announced an order suspending a cryptocurrency lender’s California license for 30 days pending DFPI’s investigation. The suspension follows the DFPI’s notice to suspend issued on November 11, which was prompted by the cryprocurrency lender’s November 10 announcement that it would limit platform activity, including pausing client withdrawals. DFPI noted that the cryptocurreny…
CSBS announced that it will change the NMLS Money Services Businesses Call Report, which most MSB licensees are required to submit on a quarterly basis.
Among other things, the bill increases the threshold for licensed property appraisers so that they may appraise complex one to four residential units valued up to $400,000.
Transactions on the company’s platform will involve the use of the company’s tokenized version of the U.S. dollar.
According to the order, the debt collecting company was a foreign company conducting business in Massachusetts with a main address in Florida.
In order for a mortgage loan originator sponsored by a licensee to be permitted to work from a “remote location,” the location must meet certain criteria.
New legislation will allow most companies that the Department of Insurance and Financial Institutions licenses to operate with additional trade names under a single license.
The announcement noted the number of individual state licenses eligible for renewal is 13 percent higher than the same time last year.
The new legislation amends various provisions of the Debt Collection Licensing Act and takes effect Jan. 1, 2023.
California Financing Law licensees must pay their annual assessments to the Department of Financial Protection and Innovation by the end of the month.
In this webcast, we provide a Q&A and share tips on how to make the renewal process more manageable for financial services licensees.
On September 19, the U.S. Court of Appeals for the Third Circuit affirmed a district court’s ruling in an FDCPA suit.
The new bill was signed by the California governor on September 23 and the changes go into effective on January 1, 2023.
On September 21, the Oregon Department of Consumer and Business Services filed permanent administrative order FSR 3-2022 with the Secretary of State to allow licensed loan originators and employees to work from home. Under the order, Oregon licensed mortgage loan originators “may originate loans from a location other than from a licensed branch office if the location…
Proposed rulemaking would adopt new regulations and amend current regulations implementing the Student Loan Servicing Act.
A new bill broadens unlawful practices oversight and enforcement power over any person currently engaging, or having engaged in the past, in unlicensed activity.
Remote work is permitted if licensee take certain actions, including the protection of consumers’ personal information.
The District of Columbia’s Department of Insurance, Securities and Banking issued a bulletin bulletin noting that it considers Bitcoin to be money for money transmission purposes.
The Connecticut Banking Commissioner revoked the consumer collection agency’s license after finding that it failed to provide requested information during an examination.
The panel discussion on Tuesday, Sept. 20 is part of the Mortgage Bankers Association’s Regulatory Compliance Conference 2022 in Washington, DC.
The Florida-based point-of-sale lender allegedly engaged in finance lending in California without obtaining a license.
Maryland Court of Appeals says law firm collecting HOA debt is not engaged in the business of making loans
Class members claimed that promissory notes drafted and negotiated by the firm for its clients are subject to the Maryland Consumer Loan Law.
Among other things, supervised lender licensees may permit employees to work from remote locations, so long as the licensee complies with certain requirements.
The proposed changes would generally streamline questions asked of companies and individuals as part of the license application process.
The Connecticut Department of Banking issued an advisory providing general guidance on what types of activities and entities must be licensed.
The spring 2022 virtual meeting focused on the NMLS modernization effort, the State Examination System, the pandemic and remote work, change of control approval processing times, and the Money Services Businesses Call Report.
The regulations establish provisions for student loan servicers related in part to licensing requirements as well as related consumer protections for borrowers.
Effective immediately, the new bill adds definitions, eliminates certain requirements for licensees, and adds business operation guidance.
Licensees who fail to comply with the regulations may be subject to fines, potential license suspension or revocation.
The newest NPRM invites comments related to the scope, annual report, and document retention requirements under the Debt Collection Licensing Act.
The final installment of Buckley’s Licensing & Supervision Lifecycle webcast series covered coordination between states and various federal agencies.
Among other requirements, applicants must upload a business plan, management chart, and organizational chart to their NMLS company form (Form MU1).
A new opinion letter examines whether donations to nonprofit organizations are exempt from the California Money Transmission Act.
The Louisiana Office of Financial Institutions (OFI) published the proposed rules in the Louisiana Register to implement the Louisiana Virtual Currency Business Act (VCBA).
Louisiana enacts student loan servicer provisions, establishes requirements for private education lenders￼
Among other things, the acts prohibit servicers from misleading student loan borrowers and outline provisions related to private education lenders.
APPROVED Director Kristie Battershell joined attorneys from Buckley to discuss state supervision, enforcement, and multistate coordination.
Money lender licensees should be prepared to file their quarterly reports with the South Dakota Division of Banking in the next few weeks.
The California Department of Financial Protection and Innovation issued a notice of proposed rulemaking with written comments due by Aug. 8.
The new bills are effective July 1, 2022, and focus on requirements for licensed money transmitters and mortgage loan originators.
All current licensees should have already received a communication from the Nevada Financial Institutions Division.
The Office of Consumer Affairs and Business Regulation, Division of Banks announced the final amendments, effective May 27, 2022.
The amendments take effect Jan. 1, 2023, and strike language repealing specified provisions and add, amend, and strike certain definitions, among other things.
The three-part series kicked off with a look at state licensing and prudential standards led by Katy Ryan, APPROVED co-founder and Partner at Buckley LLP.
The new bill also provides requirements for a money transmitter that receives virtual currency, among other things.
The bill, among other things, creates provisions related to consistent licensure, application for licensure, and information requirements for certain individuals.
Among other things, the bill prohibits licensees from charging borrowers a prepayment penalty for paying all or part of a loan’s principle before the payment due date.
The FBI informed California Department of Financial Protection and Innovation that new changes are needed to state agency protocols for requesting federal background checks.
Amendments to regulations under the California Financing Law were related to a pilot program for increased access to responsible small-dollar loans.
The bill, among other things, revises provisions related to prohibited activities without a license and establishes requirements for virtual currency transfers.
Among other things, the new bill establishes that a money transmission license is not transferable or assignable, but a licensee may be acquired under certain circumstances.
The panel discussion on Tuesday, May 24 is part of the Mortgage Bankers Association’s Legal Issues and Regulatory Compliance Conference 2022 in Miami, FL.
The California-based respondent allegedly violated several provision of the Connecticut General Statutes, as well as Section 1036 of the CFPA.
Among other things, the act defines “covered employee” and adds them to the list of persons who may not be licensed due to a felony conviction.
Among other things, the bill establishes that an individual cannot engage in the business of making installment loans or acting as an installment lender in Georgia unless that person is licensed.
A new bill amends provisions relating to certain financial institutions, including California Financing Law, Escrow Agent, and Money Transmitter licensees.
A federal court told a state-chartered bank and its fintech partner that they must return to a state administrative law proceeding to fight allegations that their failure to obtain a license to lend and collect on loans violated state law.
A company name change can be the most difficult license amendment. Here are the top things that you need to know.
The updates to the Kansas Mortgage Business Act are effective July 1.
Among other things, the act requires, subject to certain exemptions, persons servicing student loans in the state to obtain a license from the commissioner.
Among other things, the bill permits employees of a licensee to engage in the mortgage lending process from an alternate location if certain conditions are met.
The new fee will cover the costs associated with the oversight of virtual currency businesses and “defray operating expenses.”
The bill’s provisions apply to sales-based financing contracts or agreements entered into on or after July 1.
All current licensees should have already received a communication from the Nevada Financial Institutions Division.
The California residential mortgage loan report, also known as the California Holden Act report, is typically due by March 31 each year.
The Bureau filed a complaint last year against the defendants alleging violations of several federal laws, including TILA and the CFPA.
The new bill, which updates laws regarding licensure and regulation of money transmitters, is effective June7.
A new opinion letter examines whether a registered money services business requires licensure under the California Money Transmission Act.
The changes are effective July 1 and amend existing law to revise certain requirements for collection agencies and applicants for licensure.
Among other things, the new bill provides penalties for failure to comply with registration and disclosure requirements.
The CFPB director warned that large, dominant banks and firms that repeatedly break the law “should be subject to the same consequences of enforcement actions as small firms.”
Among other things, the changes affect mandatory education and background check requirements for licensed individuals.
The new legislation is effective July 1, 2022 and establishes debt management services and licensing requirements.
The updated provisions include requirements for licensing, as well as contract for the services of a loan broker.
New opinion letters cover aspects of the California Money Transmission Act related to a digital currency trading platform and the referral of customers to financial institutions.
Money services businesses are often required to submit evidence of registration with FinCEN along with their state license applications.
DFPI also warned licensees that the commissioner may suspend or revoke a licensee’s license if an annual report is not submitted by the deadline.
The new provisions from the Montana Department of Administration became effective February 12, 2022.
March reporting deadlines are quickly approaching for California Financing Law and California Residential Mortgage Lending Act licensees.
The California-based company provided false certificates claiming that MLOs took mandatory continuing education courses as required for licensure under state and federal law.
Washington consumer loan company licensees must file their annual assessment reports and consolidated annual reports by March 1, 2022.
The new legislation makes various amendments to the Pennsylvania Consolidated Statutes related to mortgage loan industry licensing requirements.
In this webcast, we covered formation and licensing requirements critical to an effective start-up plan for new financial services companies.
Two new opinion letters cover aspects of the California Money Transmission Act related to the purchase and sale of digital assets and agent of payee rules.
Tim is a founding member of APPROVED and has served as chief operating officer since the company’s inception in 2017.
A proposed class action lawsuit claimed that the defendant unlawfully acquired defaulted credit card accounts without proper licensure.
The Connecticut Department of Banking issued an order against a California-based collection agency for failing to request a hearing within the prescribed time period after a notice regarding submission of certain information was sent.
All California Financing Law licensees are required to submit their annual reports by March 15, even if the licensee had no business activity during the 2021 calendar year.
The enforcement action targeted a mortgage education scheme offered by a California-based company that provided false certificates claiming that MLOs took continuing education courses as required for licensure.
DFPI is “working cooperatively with the NMLS team to be able to verify those that have attempted to apply” in compliance with the Dec. 31, 2021 deadline.
Among other things, the regulations set forth procedures for filing a license application through NMLS and license surrender.
The DFPI updated its CFL background check guidance to reduce the processing fee that must accompany an FBI cardstock fingerprint card.
After extensions in 2020 and 2021, the NMLS Policy Committee voted to reinstate the February 14 due date beginning in 2022.
All California Financing Law licensees not yet on NMLS must establish an account in NMLS and submit their information on or before the new deadline.
Debt collectors that miss the deadline will be required to wait for the issuance of a license before operating in California.
The transition process can be time-consuming for California Financing Law licensees, especially those new to NMLS.
The renewal period is open until Dec. 31 via the ALECS online licensing portal, after which a reinstatement period of 180 days begins.
Among other things, the proposed modifications amend the definitions of “branch office” and “debt collector.”
The CCFPL provides DFPI with the authority to require companies that provide financial products and services to California consumers to register with the agency.
All current Nebraska collection agency licensees that fail to transition to NMLS by December 31 will need to reapply for a license.
Licensees not currently on NMLS must establish an account in the system and transfer information to DFPI through NMLS on or before the deadline.
Amendments to the Residential Mortgage Practices and Licensing Rules to eliminate unnecessary and redundant licensee expenses for criminal background checks and credit reports.
The new opinion letters cover aspects of the California Money Transmission Act related to virtual currency and agent of payee rules.
We provide insights into common account creation hurdles that companies face as thousands of California Financing Law licensees are transitioning to NMLS.
They join a majority of states that require new applicants for certain licenses to submit ESBs in lieu of paper bonds, and require current licensees to convert their paper bonds to ESBs.
According to CSBS, early renewal is critical due to an increase in the number of licensees eligible for renewal.
The opinion letters cover aspects of the California MTA related to bitcoin ATMs and kiosks and the Agent of Payee exemption.
It is recommended Mortgage Company, Mortgage Banker, and MLO licensees in Texas review the amendments to these new rules.
The Financial Action Task Force updated pre-existing guidance on its risk-based approach to VAs and VASPs originally released in 2019.
The agency issued draft proposed amendments to 23 NYCRR 1, which regulates third-party debt collectors and debt buyers.
The virtual meeting focused on the NMLS modernization effort, the SES, the pandemic and remote work, and the CSBS Money Transmitter Model Law.
CSBS issued a request for public comments on behalf of NMLS-participating state regulatory agencies. Comments are due December 17.
A North Carolina-based company allegedly used a name other than its legal name when collecting unpaid debts without a Connecticut consumer collection agency license.
First up is California, with Department of Financial Protection and Innovation invoices for California Financing Law licensees due in full by October 31, 2021.
Participants will have 24 months to test an innovative product or service on consumers in the state without being subject to state laws and regulations that normally would regulate such products or services.
In this webcast, we answered audience questions, discussed key renewal items, and shared some tips on how to make the process more manageable.
The bill amends certain provisions related to small dollar lending requirements and specifies various consumer protection requirements.
Licensees must provide a toll-free telephone number to contact for customer service issues and to receive live customer assistance.
The move away from a state-specific vendor allows the fingerprints submitted through Fieldprint to be leveraged for nearly all NMLS licenses.
When creating advertisements, financial services licensees may not have licensing at top of mind – but they should.
APPROVED COO Tim Lange and Buckley LLP Partner Katy Ryan teamed up to break down the act’s requirements, specifically discussing who’s covered by the act, exemptions from licensure, and next steps for industry and regulators.
Mortgage servicers licensed in California must provide information to DFPI describing the actions they are taking to help homeowners avoid foreclosure.
The act is intended to replace 50 sets of state-specific money transmitter laws and rules with a single set of nationwide standards and requirements designed by state and industry experts.
The amendments create provisions regarding inactive licenses, citations, and illegal discrimination, among other things.
On September 1, the California DFPI announced that all debt collectors operating in California can apply to be licensed.
The act requires a person engaging in the business of debt collecting in the state to be licensed and provides for the regulation and oversight of debt collectors by DFPI.
Several new opinion letters cover aspects of the California Money Transmission Act related to virtual currency and agent of payee rules.
The regulations, among other things, amend existing licensing rules to transition all licensees under the CFL to registration through NMLS.
Changes include provisions regarding third-party loan modification service providers and become effective January 1, 2022.
We were joined by Winnow Solutions to discuss the current regulatory climate for examinations and how the right combination of strategy and technology can improve the process.
The agreement reflects DFPI’s decision to “treat these private financing products as student loans” for purposes of the California Student Loan Servicing Act (SLSA).
The Pilot Program for Increased Access to Responsible Small Dollar Loans is administered by DFPI and established under the California Financing Law.
The panel discussion on Tuesday, Sept. 14 is part of the Mortgage Bankers Association’s Regulatory Compliance Conference 2021 in Washington, D.C.
Licensees on NMLS are no longer required to mail certain original application documents (e.g., lease agreement, office photos) to the Nevada Department of Business and Industry.
Among other things, the new legislation requires persons servicing student loans to obtain a license from the Oregon Department of Consumer and Business Services.
The Division of Banks published guidance that defines unfair or deceptive acts or practices for entities servicing loans or collecting debts within the commonwealth, and provides licensing, registration, and supervision procedures.
The new legislation affects certain mortgage licensing provisions in the state’s banking statutes, with changes going into effect Oct. 1.
Subject to certain exemptions, entities servicing federal student loans must obtain a license and comply with various state requirements and consumer protection mandates.
NMLS published an announcement reminding California debt collectors that all persons must apply for a license by Dec. 31, 2021.
Over the past year, California, Kentucky, New Hampshire, and Oklahoma joined a majority of states in requiring that new applicants for certain licenses submit electronic surety bonds via NMLS in lieu of paper bonds.
A new opinion letter covers aspects of the California Money Transmission Act related to certain cryptocurrency activities.
Between July 1 and Sept. 30, companies that hold a combination license must transition back to the appropriate licenses in order to conduct business in the state.
The updates to the Student Loan Servicers Act cover private lenders, creditors, and collection agencies connected to postsecondary non-federal student loans.
The Colorado Nonbank Mortgage Servicers Act provides additional consumer protections through the regulation of mortgage servicers.
The guidance replaces any previous guidance issued by the Division of Banks of the Massachusetts Office of Consumer Affairs and Business Regulations regarding telework and will continue, unless modified or withdrawn.
According to an announcement posted on the DFPI’s website, transitioning is voluntary until related proposed amendments to the CFL regulations are adopted. However, it is anticipated that the transition deadline will remain Dec. 31, 2021.
Licensees would be wise to double-check deadlines before they assume that they’re off the hook and head out for summer vacation.
In this webcast, our panel discussed what lenders and brokers that hold a CFL license off of NMLS can expect with the upcoming transition to the system.
Among other things, the legislation exempts certain supervised financial institutions from certain notice and fee requirements.
The California Department of Financial Protection and Innovation’s notice specifies that comments on the proposed modifications are due July 12.
Among other things, the new legislation creates a Student Loan Bill of Rights and outlines new provisions for student loan servicers.
The California Department of Financial Protection and Innovation released background check guidance applicable to the key individuals of California Financing Law licensees and license applicants.
The new rule addresses the revocation and suspension of mortgage licenses, the reinstatement of expired or suspended licenses, and applications for initial licenses near year end, among other things.
Among other things, the bill allows DFI to accept licensing applications through the NMLS for certain license types.
New legislation clarifies certain deadlines and provisions in consumer credit applications and licensing requirements for mortgage loan originators.
Wrap loans will be subject to regulation like other mortgage loan products in order to provide certain protections for buyers and sellers.
In this APPROVED Checkpoint webcast, we discussed proactive steps to keep records up-to-date with state and federal regulators.
The new requirements are expected to streamline the licensing process as part of efforts by state regulators to expand uniformity in state regulation through a strategy called Networked Supervision.
The Department of Financial Protection and Innovation now expects all companies to apply for the CFL license electronically via NMLS.
New legislation amends various provisions related to insurance, banking, and securities, including those related to licensing applications and the annual renewal process.
The Arizona governor signed into law SB 1463, a bill that makes various changes to the Arizona Department of Insurance and Financial Institutions (DIFI).
There are now fewer than 10 states that require an in-state office in connection with a consumer or mortgage lender license.
The NFID stated that they will not further extend the work from home provisional guidance, and that licensees should plan accordingly.
Pending paper applications must be resubmitted via NMLS and companies currently holding the license must submit a transition request by October 31, 2021.
The law allows a mortgage originator, broker, or servicer’s employees to work from their residence, assuming the individual is adequately supervised by the employer.
The notice of proposed rulemaking outlines new requirements for debt collectors seeking to obtain a license to operate in the California.
Buckley offers two regtech solutions designed to help financial services companies navigate, manage, and respond to state regulatory requirements: Winnow and Mogy.
On April 13, the Maryland governor signed SB 251, which amends provisions related to licensing requirements for nondepository institutions.
The Conference of State Bank Supervisors announced a request for public comments on proposed requirements for developing a new system to streamline the licensing application process.
On April 1, the Arkansas governor signed SB 149, which amends provisions related to licensing requirements under the state’s Fair Mortgage Lending Act.
The Department of Finance extended its temporary regulatory guidance affecting permitting mortgage brokers and lenders, mortgage loan originators, regulated lenders, title lenders, payday lenders, and collection agency licensees and registrants.
The law permits the Securities Commissioner to establish terms and conditions for mortgage loan activity to be conducted outside of an entity’s main place of business or branches.
On March 17, the Nebraska governor signed LB 363, which amends certain licensing requirements for installment lenders and money transmitters.
The change affects lenders who provide “credit availability transactions” to customers through fully amortized loans paid over a term of four to 12 months.
The law allows licensed MLO activity to be conducted from home if, among other things, certain state and information security requirements are satisfied.
In this Checkpoint Webcast, our panelists shared practical advice on how financial services companies can prepare to handle potential regulatory changes and develop strategies to comply with licensing and maintenance requirements.
The Department of Business of Industry, Division of Mortgage Lending extended its provisional guidance allowing licensed mortgage loan originators to work from home until June 30, 2021.
The Department of Banking extended its no-action position with respect to various licensees temporarily working from home through June 30, 2021.
On March 1, the New York attorney general issued two alerts warning investors about the “extreme risk” facing New Yorkers investing in virtual or “crypto” currency
The new opinion letters addressed virtual currency, agent of payee rules, and transactions in which recipients are paid before a company is reimbursed.
During the NMLS Annual Conference, the Conference of State Bank Supervisors released an updated cybersecurity examination tool designed for nonbank financial company supervision.
The Department of Financial Institutions extended interim guidance permitting certain licensees with a physical presence to reduce hours or work from home to coincide with local mayors’ orders.
On February 18, the Texas Office of the Consumer Credit Commissioner issued updated guidance for regulated lenders relating to the Covid-19 crisis.
The panel discussion on Feb. 24, 2021 is part of the NMLS Annual Conference and looks at how responses to the pandemic in 2020 will shape business operations, legislative priorities, and regulatory oversight moving forward.
The FAQs respond to questions regarding, among other things, licensing and examination processes of the Department during Covid-19.
The invitation for comments describes specific topics for stakeholder consideration when providing comments, but the DFPI notes that commenters may provide feedback on “any potential area for rulemaking.”
The agency announced the first-ever enforcement action under its new structure against a student loan debt-relief company and an investigation into others.
An opinion letter explains that the sale and purchase of bitcoin through ATMs/kiosks in third-party retail locations are not subject to licensure because the sale and purchase of bitcoin from the company’s own inventory through a kiosk does not meet California’s definition of “money transmission.”
The Department of Financial Institutions issued the interim regulatory guidance to licensed mortgage loan originators and companies that sponsor them.
The panel discussion on Feb. 24, 2021 is part of the NMLS Annual Conference and looks at how responses to the pandemic in 2020 will shape business operations, legislative priorities, and regulatory oversight moving forward.
The new provisions stipulate that servicers are not required to be licensed as a debt collector or be registered as a third-party loan servicer, provided they meet certain criteria.
California’s Department of Financial Protection and Innovation announced the issuance of subpoenas to a dozen debt collection companies as part of its investigation into consumer complaints regarding alleged UDAAP practices.
The Washington Department of Financial Institutions issued interim regulatory guidance to licensed mortgage loan originators and companies that sponsor them relating to temporary remote work.
The amended regulations include updates to definitions, disclosure requirements, and other licensee duties and responsibilities.
The Department of Financial Services, Office of Financial Regulation amended rules related to the application procedures for prospective loan originator, mortgage broker, and mortgage lender licensees.
The legislation would exempt certain banking organizations, any lender who makes or solicits five or fewer commercial financing products within a 12-month period, and check casher licensees, among others.
As states continue to extend work-from-home orders in response to the Covid-19 pandemic, and considering that remote work will continue to be the norm for many individuals even after the pandemic subsides, licensees must be prepared to address regulators’ heightened concern for data security.
On December 15, the Minnesota Commerce Department issued guidance regarding non-depository financial institution telework.
The Department of Consumer Credit extended, for the sixth time, its interim guidance to regulated entities on working from home in response to the Covid-19 pandemic.
California’s Department of Financial Protection and Innovation released opinion letters covering aspects of the Money Transmission Act related to Bitcoin ATMs.
The consent order requires the commercial financing company to desist from lending in California unless and until licensed under the CFL, among other things.
The panel discussion on Jan. 12, 2021 is part of the California Mortgage Bankers Association Legal Issues & Regulatory Compliance Conference.
The Department of Banking and Finance recently updated its guidance regarding temporary branch relocations, effective through the end of 2020.
Several state regulatory agencies updated guidance on emergency measures for home equity lenders to consider in response to the COVID-19 pandemic.
The Consumer Credit Commissioner updated its advisory bulletin urging motor vehicle sales finance licensees to work with consumers during the pandemic.
The Consumer Credit Commissioner issued updated guidance for regulated lenders relating to the Covid-19 crisis, effective through December 31, 2020, unless withdrawn or revised.
The redacted opinion letter covered aspects of the Money Transmission Act related to the registered clearing house and payment processing service exemptions.
NYDFS announced authorization for a digital payments company to launch a service for U.S. customers to buy, sell, and hold certain NYDFS-approved cryptocurrencies.
On October 22, the Oklahoma Department of Consumer Credit extended, for the fifth time, its interim guidance to regulated entities on working from home (see here, here, here, here, and here for previous coverage). The guidance sets forth data security standards for regulated entities with employees working from home and also provides that the department…
This Checkpoint webcast covered the top 20 things you need to know about mortgage loan originator licensing in the ’20s.
The Department of Financial and Professional Regulation adopted regulations implementing provisions of the Student Loan Servicing Right Act related to licensing fees, operations, and supervision.
On September 15, the Department of Banking and Insurance began accepting applications for the NJ Student Loan Servicer license through NMLS.
Katy Ryan, APPROVED co-founder and Buckley partner, hosts a session on Oct. 27 as part of the QuestSoft Lending Compliance & Risk Management Virtual Conference.
The Act requires a person engaging in the business of debt collecting in the state to be licensed and provides for the regulation and oversight of debt collectors by the DFPI.
On September 28, the Conference of State Bank Supervisors announced that the Ohio Division of Financial Institutions received its first Money Service Business Accreditation.
The governor signed AB 107, an Assembly Budget Committee bill, which changes the name of the Department of Business Oversight to the Department of Financial Protection and Innovation (DFPI).
The Department of Business Regulation, Banking Division, extended previous guidance issued to mortgage loan originators, lenders, loan brokers, and exempt company registrants.
The Department of Consumer Credit guidance sets forth data security standards that regulated entities must meet in order to satisfy the department guidance.
For the first time ever, the recent NMLS Ombudsman meeting was virtual and focused on a single topic: remote work and supervision in a post-pandemic world.
The streamlined examination for money transmitters operating nationwide (i.e., in 40 or more states) will be known as “MSB Networked Supervision.”
Panelists from our recent webcast on examinations and complaints follow-up on audience questions that were not addressed during the program due to time limitations.
This webcast covered a number of topics, including how to prepare for renewal, what to expect during the renewal period, state-specific requirements, and how the pandemic could affect the process this year.
The California Consumer Financial Protection Law changes the name of the Department of Business Oversight and expands UDAAP and enforcement authority.
The annual report covers the 2019 operations of finance lenders, brokers, and Property Assessed Clean Energy program administrators licensed under the California Financing Law.
The California Department of Business Oversight announced a formal investigation into a California auto title lender to determine whether the lender is evading state interest rate caps through a recent partnership with a Utah-based bank.
New applicants and existing licensees may now make submissions for Georgia Department of Banking and Finance licenses directly through NMLS.
With this development, the already short list of state financial services regulators enforcing such a requirement became significantly shorter.
The NMLS annual renewal period is right around the corner and it’s certainly not too early for state-licensed mortgage loan originators to start fulfilling their annual continuing education requirements.
The California Department of Business Oversight (CDBO) released two new opinion letters covering aspects of the California Money Transmission Act (MTA) related to the sale of foreign currency and the agent of the payee exemption.
Remote work guidance was extended through Dec. 31 for mortgage companies, MLOs, supervised loan licensees, credit services organizations, money transmitters, and credit notification registrants.
This discussion covers how the pandemic has affected the traditional examination process, and updates from CSBS regarding the latest developments within the State Examination System (SES) and on managing complaints.
The Department of Banking issued a memorandum extending through December 31, 2020 with respect to various licensees temporarily working from home during Covid-19.
The Arkansas Securities Department extended interim regulatory guidance previously issued to licensed mortgage companies, MLOs, and branch managers.
The Texas Office of the Consumer Credit Commissioner issued updated guidance for regulated lenders navigating the Covid-19 crisis.
The Division of Financial Institutions extended, until September 30, 2020, interim guidance permitting licensees to reduce hours or close offices during Hawaii’s Covid-19 Emergency Period.
The Department of Finance extended guidance previously issued to certain mortgage, debt collection, and consumer lending licensees.
The opinion letters issued throughout the summer covered virtual currency and agent of payee rules under the California Money Transmission Act.
The Division of Financial Institutions extended its guidance temporarily permitting employees of depository and non-depository entities to work from home or some other remote location approved by the financial institution.
Governor Newsom signed the Budget Act of 2020, which allocates $10.2M in 2020-21 growing to $19.3M in 2022-23 to the DBO, contingent on the enactment of the law.
The Department of Consumer Affairs updated and extended its interim guidance permitting mortgage loan originators to work remotely.
The Office of Financial Institutions’ extension covers residential mortgage lenders, check cashers, bond for deed escrow agents and repossession agents, and pawnbrokers, among others.
The governor issued an executive order further extending the expiration date of certain licenses issued by the Division of Banking and the Division of Real Estate.
This Checkpoint webcast focuses on getting the most out of third-party vendor relationships and navigating potential issues during the current pandemic. APPROVED team members Tanya Anthony and Tim Lange are joined by a panel of industry leaders who share their experience and insights.
While the second-quarter VOSR typically must be submitted to the NYSDFS no later than July 30, that deadline has been extended because of the Covid-19 pandemic.
The Office of the Consumer Credit Commissioner updated its advisory bulletin urging motor vehicle sales finance licensees to work with consumers during the Covid-19 crisis.
On July 17, the Texas Office of the Consumer Credit Commissioner updated its Regulated Lender Advisory Bulletin on coronavirus emergency measures.
On July 6, the Missouri governor signed SB 599, which, among other things, modifies the state’s mortgage broker licensing requirements. The legislation is effective August 28, 2020.
HB 701 was signed into law on June 13 and provides for the licensing and regulation of virtual currency businesses in the state, effective August 1, 2020.
On July 1, 2020, the South Dakota Division of Banking began accepting mortgage branch registration applications via NMLS.
The Office of the State Bank Commissioner extended its remote work guidance for mortgage companies, MLOs, supervised loan licenses, credit service organizations, money transmitters, and credit notification registrations through September 15.
The Reverse Mortgage Lending Dual Authority License and the Reverse Mortgage (HECM) Lending License appear to be the first licenses related exclusively to reverse mortgage lending activities on NMLS.
The Division of Financial Institutions extended its earlier guidance for licensees with locations in Hawaii to July 31, 2020.
The Department of Consumer Credit issued a third extension to its interim guidance to regulated entities, extending the guidance through Sept. 30, 2020.
NYDFS issued a a Memorandum of Understanding with the State University of New York to launch a virtual currency program and resources intended to help virtual currency market participants.
According to the OCC, state laws that are intended to impose licensing requirements on a national bank’s exercise of fiduciary powers are preempted and satisfaction of an exemption from those requirements is not required.
The Office of Financial Regulation issued Emergency Order 2020-04, which extends filing deadlines for certain mortgage and MSB licenses.
The Department of Financial Institutions issued interim regulatory guidance permitting mortgage loan originators to work from home until December 31, 2020.
The Department of Financial Institutions issued amended guidance for state-regulated and exempt residential mortgage loan servicers.
In April 2020, a number of changes were made to the Guidebook, including the addition of a section on “Non-Disclosable Events and Regulatory Actions.”
The Banking Commissioner in Connecticut issued a memorandum extending its “no action” position regarding temporary work-from-home guidance.
The Office of the State Bank Commissioner extended its remote work guidance for mortgage companies, mortgage loan originators, supervised loan licensees, credit services organizations, money transmitters, and credit notification registrants.
State-licensed companies should be on the lookout for fraudulent communications suggesting that a filing or payment is required from them in order to remain in good standing with various secretaries of state.
The Office of Financial Institutions updated its non-depository 2020 Covid-19 emergency declarations to extend earlier guidance regarding closure of licensed locations and temporary location changes.
The South Dakota Division of Banking extended the time period in which licensed mortgage loan originators can work from home until December 31, 2020.
The Department of Consumer Credit extended previous guidance permitting MLOs and employees of regulated entities to work from home or an alternate site.
The Department of Banking and Insurance issued a bulletin to certain licensees regarding temporarily working from home due to Covid-19.
The New Mexico Financial Institutions Division extended its guidance allowing mortgage licensees and their staff to work from home until August 31, 2020.
The Department of Financial Institutions announced the new process that will enable licensees to renew licenses of the parent licensee and its branches at the same time.
The Department of Banking extended its no-action position with respect to licensees temporarily working from home during Covid-19 through June 30, 2020.
Buckley Partner Katy Ryan joined APPROVED team members Tanya Anthony and Twilla Wojciechowski to discuss key state requirements, ACN deadlines, change of control, and tips on how to successfully manage company amendments in today’s environment. [Checkpoint Webcast]
The Department of Business of Industry, Division of Mortgage Lending extended its provisional guidance for MLOs to work from home through August 31, 2020.
The Office of Consumer Credit Commissioner revised an advisory bulletin extending the deadline from May 1, 2020 to June 1, 2020
The Department of Banking Insurance issued a bulletin regarding the extension of deadlines for certain entities and individual regulated by the Division of Banking.
Spring is a great time to review and update NMLS records. Here are some tips to help you clean up those sections of the NMLS company, branch, and individual forms that tend to get overlooked and disorganized.
The amendments are intended to reduce costs for residential MLOs and to ensure consistency with current licensing procedures and processes.
The Department of Financial Institutions’ guidance extends earlier interim guidance permitting mortgage loan originators to work from home.
The bulletin from the Director of Michigan’s Department of Insurance and Financial Services reiterates that work should be done remotely to the fullest extent possible in compliance with the governor’s stay at home orders.
The Office of Financial Regulation reminded Money Transmitter Part II licensees that the deadline to renew licenses has been extended to June 1, 2020.
The 2020 deadline for New York mortgage banker licensees and mortgage broker registrants to file a VOOR with the NYDFS has been extended due to the Covid-19 pandemic.
The Department of Financial and Professional Regulation issued guidance to persons or entities licensed pursuant to the Transmitter of Money Act regarding the submission of financial documents.
The Louisiana Office of Financial Institutions’ guidance affects those licensed pursuant to the Louisiana Consumer Credit Law and the Louisiana Deferred Presentment and Small Loan Act, among others.
The Virginia legislature enacted SB 77, which requires entities servicing student loans in the Commonwealth to be licensed by the State Corporation Commission.
The FAQs regarding the effect of Covid-19 address filings, the processing of licensing or registration applications, and remote work for securities professionals, among others.
The Department of Business Regulation, Banking Division, amended previous guidance issued to mortgage loan originators, lenders, loan brokers and exempt company registrants.
The guidance to state-regulated debt buyers and collection agencies included reasonable measures they could take to prevent garnishment of CARES Act stimulus checks.
The Department of Financial Services Commissioner extended guidance enabling employees of regulated entities to work remotely through June 15.
The interim guidance addressed working remotely from unlicensed locations and extended the deadline for submitting the 2019 mortgage log.
The Department of Banking and Insurance extended the deadline for license and registration applications under New Jersey’s Mortgage Servicers Licensing Act to June 12, 2020.
The Department of Banking, Department of Savings and Mortgage Lending, Office of Consumer Credit and Credit Union Department issued revised home equity lending guidance related to making new loans or adjusting existing loans to facilitate recovery efforts.
The Department of Insurance, Securities and Banking issued new procedures requiring electronic submissions and payments in light of the Covid-19 public health emergency.
The Oregon Division of Financial Regulation temporarily authorized certain licensees to work from home while transacting business when specific conditions are met.
The Department of Consumer Credit issued amended interim guidance to licensees, effective through May 31, 2020.
The Virginia governor signed HB 1553, which outlines licensing and regulatory requirements for debt settlement services providers.
This session covers best practices and insights on how regulatory responses to the Covid-19 pandemic might shape branch licensing in the future. [Checkpoint Webcast]
On April 16, the Texas Office of Consumer Credit issued a revised bulletin outlining emergency guidance for regulated lenders navigating the Covid-19 crisis.
The South Carolina Bureau of Financial Institutions requires several consumer finance and MSB licenses to be transitioned to NMLS by May 31.
New license applicants and existing licensees will be required to use NMLS beginning April 15 and existing licensees have until June 15 to submit their license transition requests.
Among other things, lenders are encouraged to follow the terms of the provisions for non-federally-backed mortgage loans as if they were federally-backed.
Money services businesses are not designated as essential businesses in New Mexico, and as such, were instructed to temporarily cease all standalone storefront operations to further combat the spread of Covid-19.
The April 13 guidance on cybersecurity awareness issued by the New York Department of Financial Services identifies three areas of heightened risk.
The Office of Financial Institutions Commissioner declared a state of emergency and issued guidance for Louisiana-licensed lenders and brokers in response to the Covid-19 crisis.
The Financial Institutions Division announced a program to grant temporary exemptions to certain licensing requirements for approved SBA lenders participating in the Paycheck Protection Program for businesses impacted by Covid-19.
The Covid‑19 Regulatory Tracker is an interactive, web-based resource that gives legal and compliance professionals comprehensive surveys tailored to their needs, saving time by filtering hundreds of irrelevant notices and alerts.
For those entities currently conducting business as mortgage servicers and not otherwise exempt, the New Jersey Department of Banking and Insurance provides a deadline of April 13, 2020.
The Supervisor for the Alabama State Banking Department Bureau of Loans issued a statement to licensees extending the annual report, mortgage call report, and financial statement deadlines to July 15.
West Virginia amends mortgage loan originator definition; adjusts allowable final installment payment on mortgage loans
The changes amend the definition of a mortgage loan originator with respect to manufactured home retailers and the adjusts allowable final installment payment on a mortgage loan.
The amendment modifies provisions related to consumer lending in the state, including registration, reporting, and operational requirements for deferred deposit lenders.
Sellers and servicers are expected to maintain and follow business continuity plans during the Covid-19 pandemic. The guidance also summarized the relief that servicers should provide to impacted borrowers.
The Office of the State Bank Commissioner issued a directive that, beginning on April 15, certain MSBs should use the system for applications, renewals, surrenders and amendments.
The DBO issued the guidance to finance lenders, PACE administrators, deferred deposit originators, and premium finance companies.
The Division of Financial Institutions issued guidance permitting licensees reduce hours or close offices during Hawaii’s Covid-19 Emergency Period.
The guidance extends the deadlines to file annual reports originally due March 1 or March 15, 2020 to April 30, 2020, for a number of consumer credit-related licensees
The program allows participants to temporarily test innovative financial products or services on a restricted basis without requiring a license under West Virginia law.
House Enrolled Act No. 1353 amends various provisions concerning financial institutions and consumer credit, including those related to first lien mortgage lenders, credit unions, and surety bond requirements, among others.
On March 18, the Washington governor signed Substitute HB 2476, which clarifies the definition of a debt buyer and outlines prohibited activities.
On March 30, Maryland Governor Larry Hogan issued an executive order permitting remote notarization under certain circumstances and strongly encouraging this flexibility be used to conduct loan closings remotely.
The Division of Banking extended the due date for debt collectors, small loan lenders, and debt management companies to submit 2020 Rhode Island Annual Reports to April 30, 2020.
The March 30 guidance from the Illinois DFPR affects mortgage, consumer finance, debt, and money services businesses, among others.
The Idaho Department of Finance issued a memorandum to money transmitter licensees and applicants regarding agency operations and communications due to Covid-19.
Nebraska Department of Banking and Finance announced it will temporarily halt all regular examinations unless the examination is critical to safety and soundness, consumer protection, or is necessary to address an urgent or immediate need.
The Illinois Department of Financial and Professional Regulation, Division of Professional Regulation and Division of Real Estate, is extending deadlines by 21 days from the current deadlines set.
Instead of the original 60-day deadline extension, the NMLS Policy Committee encourages regulators to be lenient if reports are filed within 30 days of the placement of the license item (based on the standard due date).
The North Carolina Department of Insurance issued guidance clarifying certain debt collection obligations for insurance companies and related entities.
District of Columbia permits mortgage brokers and originators to work from home, delays reporting deadlines
The D.C. Department of Insurance, Securities and Banking guidance also notes that all evictions of tenants and foreclosed homeowners on or before May 1 are stayed.
On March 26, the Texas OCCC issued four bulletins directed at regulated lenders urging these entities to work with borrowers during the crisis.
The South Carolina guidance applies to Mortgage Log Filings while the Massachusetts extensions affect a number of reporting deadlines.
The Division further advised licensees that it does not require an MLO’s home to be licensed as a branch so long as they do not advertise it as an office or meet consumers there.
The Indiana Secretary of State, Securities Division issued a Compliance Alert to all licensed loan brokers and collection agencies. The Division encouraged licensees to instruct their employees to work from home and refrain from any in-person meetings whenever possible.
Licensed mortgage companies, mortgage loan originators, supervised loan licensees, credit services organizations, money transmitters, and credit notification registrants will be allowed to operate from remote locations.
On March 18, Louisiana’s Commissioner of Financial Institutions released emergency advisories for non-depository institutions, specifically repossession agents and bond for deed escrow agents, check cashers, pawnbrokers, licensed consumer lenders/brokers, and residential mortgage lenders.
In response to the Covid-19 pandemic, the NMLS Policy Committee on Mar. 25, 2020 extended the deadline for certain reporting obligations satisfied through NMLS, and the enrollment window for taking the SAFE MLO test.
NYDFS extended the deadlines for regulated institutions to provide their plans to manage the financial and operational risk caused by Covid-19 until May 25.
The Secretary of State, Securities Division, issued guidance to loan broker and collection agencies in response to Covid-19, encouraging licensees to instruct their employees to work from home and refrain from any in-person meetings.
In response to the Covid-19 pandemic, the Oregon Division of Financial Regulation has indefinitely suspended enforcement of the March 31 deadline.
The DBO issued guidance to escrow agents, finance lenders and servicers, student loan servicers, residential mortgage lenders and servicers, and mortgage loan originators in light of Covid-19.
Among other things, HB 401 amends the definition of “mortgage lending activities” to include residential mortgage servicing and eliminates certain prohibited practices.
The Michigan Department of Insurance and Financial Services seeks to understand licensees’ and registrants’ plans so that they can better address related inquiries from consumers.
The CO Attorney General released a statement urging student loan servicers, creditors, and debt collectors to discontinue mandatory debt collection efforts for consumers who experience financial distress due to Covid-19.
We have collected and summarized the preliminary guidance issued by the following states: Alaska, Alabama, Arkansas, Connecticut, Idaho, Kansas, Massachusetts, Maryland, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Vermont, Washington, and Wisconsin.
In response to coronavirus/Covid‑19, Prometric announced today that it will temporarily close all of its test centers in the U.S. and Canada for 30 days, beginning March 18.
On March 10, the New York State Department of Financial Services issued several industry letters related to the novel coronavirus known as “Covid‑19.” Two of those letters require responses from New York regulated institutions no later than April 9, 2020.
On March 5, the governor signed HB 4353, which creates “a rational nexus requirement between prior criminal conduct and initial licensure decision making,” to guide commissioners or commissions with licensing authority.
Guidance notes the ability for licensed individuals to work remotely and other exceptions to the usual rules to ensure continuity of operations.
Among other things, SB 28 outlines reasons why an application for a license may be denied and sets forth licensure exemptions.
The MSB Model Law is a primary part of CSBS’s Vision 2020 initiatives, intended to modernize state regulation of non-banks and fintech firms.
Debbie Stopeck, a senior program manager at APPROVED, shares her unique insights from a career spanning nearly four decades in licensing at the California DBO. [Checkpoint Webcast]
There are some quickly-approaching deadlines for reports and financial statements filed via the NMLS.
CRMLA licensees are required to file an annual report with the California DBO no later than March 1, 2020. Some lenders must also file a Holden Act report by March 31, 2020
It is important to properly surrender a license that is no longer required to effectively terminate the issuing regulator’s supervisory authority. Here are a few key things to know about surrenders.
The Dec. 27 advisory stated that consumers may not be obligated to pay finance charges on consumer credit transactions purchased, acquired, or otherwise assigned to retail credit sellers that have not filed applicable notifications.
The DBO does not grant filing extensions, and missing the March 15 deadline may result in monetary penalties and/or suspension or revocation of the license.
The DBO had initially denied the company’s license application in December 2019 and issued a statement of issues explaining its reasoning.
Finding out that your license application has been approved is a celebratory occasion, with the news delivered, in some cases, in the form of a license certificate. Here are a few key things to know about certificates.
Gov. Newsom’s proposal would include the creation and administration of the California Consumer Protection Law through expansion of the California DBO
Governor Cuomo’s proposal would expand the entities subject to NYDFS’ enforcement authority and harmonize state regulator authority to bring UDAAP actions.
Related guidance issued after determining the Minnesota-based company had already been making unregulated loans to California consumers in violation of the CFL.
Our panel shares best practices and tricks of the trade to prepare for periodic reports coming up in the first quarter of 2020. [Checkpoint Webcast]
On Jan. 1, 2020, the NMLS will convert Nevada mortgage broker licenses and Nevada mortgage banker licenses to Nevada mortgage company licenses.
Certain licensees in Mississippi, New Mexico, and Rhode Island face a Dec. 31 deadlines to transition to the NMLS. Others in Kentucky and South Carolina will be required to transition in the first half of 2020.
On November 24, the mortgage loan originator temporary authority to operate (Temporary Authority) provisions of the Federal Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) take effect. The primary goal of Temporary Authority is to streamline MLO licensing and reduce friction in lending nationwide by permitting qualified MLOs to apply to be temporarily…
APPROVED has built a web-based regtech platform from the ground up. We call it Mogy — named after a pioneer in the field of work simplification — and it is designed to make the licensing process smarter, more predictable, and more streamlined. At Mogy’s core is a proprietary requirements database, built upon the combined legal…
On October 25, the California Department of Business Oversight (DBO) published proposed regulations that (i) require all licensees under the California Financing Law (CFL) to register through NMLS; and (ii) establishes regulatory requirements for the oversight of Property Assessed Clean Energy (PACE) program administrators. Currently, under the CFL, some licensees engaged in residential mortgage origination…
Until recently, all Maryland credit services businesses (CSBs) were required to provide consumers with a written statement that includes the information listed at Md. Code Ann. Com. Law § 14-905 prior to either (1) the execution of a contract or agreement between the consumer and the CSB, or (2) the receipt by the CSB of…
WASHINGTON, D.C. (Oct. 28, 2019) APPROVED, Buckley’s licensing service for financial services companies, announces the addition of two key players as it expands its state examination management and California licensing capabilities — Kristie Battershell and Debbie Stopeck. “We continue to build APPROVED by attracting talented people with deep knowledge of the licensing process who know…
It’s that time of year! The NMLS annual renewal period begins on November 1, and ends on December 31. It’s important to handle your renewal requirements as early as possible, given that failure to renew in a timely manner may result in license termination. For starters, you’ll want to ensure that your NMLS record is…
The California Department of Business Oversight (DBO) has notified California Financing Law (CFL) licensees and California Residential Mortgage Lending Act (CRMLA) licensees of their annual assessment obligations for fiscal year 2019-2020. Assessment invoices must be paid by October 31, 2019. For CRMLA licensees, notice of the assessment was provided via an NMLS invoice last month.…
Find what you need with Winnow Buckley LLP is preparing to launch its newest product, Winnow, in 2020. Winnow is a powerful online application designed to deliver regulatory surveys tailored to a user’s specific business type and licensing, the financial products they offer, and where they offer those products. Winnow solves one of the key…
Temporary Authority — Learn why 2, 14, 30, 120, 365, and 2155 may be your lucky numbers! [Webcast Archive]
Our panel discusses the launch of TA, NMLS implementation, and the approach at the state level. And of course, the importance of the numbers 2, 14, 30, 120, 365, and 2155. [Checkpoint Webcast]
Over the summer, the NMLS implemented Release 2019.7, which requires NMLS company users to provide worker classification information for certain individuals associated with the company’s record. While the release is in support of Temporary Authority to Operate (which goes into effect November 24, 2019), the requirement does not encompass mortgage loan originators exclusively — it…
On September 25, the CFPB published four FAQs pertaining to compliance with federal SAFE Act amendments created by the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), which take effect on November 24. According to the Bureau, the Act’s amendments “establish temporary authority, which provides a way for eligible loan originators who have applied for…
We are joined by Reece Chekan from CSBS to discuss how to prepare for renewal, including what to expect during the renewal period, state-specific requirements, and how temporary authority might impact the renewal process.
We are excited to share the news that Debbie Stopeck has joined APPROVED after a long career at the California Department of Business Oversight. We’ve asked Debbie to develop a comprehensive licensing consulting practice for California Financing Law (CFL)-eligible clients. In that role, she’ll provide oversight of CFL and other state financial services applications, and…
On August 28, the Indiana Department of Financial Institutions published in the Indiana Register an emergency rule providing 120-day temporary authority for certain mortgage loan originators (MLOs) to originate loans in Indiana without a state license, pursuant to Section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The new rule provides that in order to…
On August 16, the Finance Commission of Texas adopted provisions to amend various licensing requirements for residential mortgage loan originators (MLOs) regulated by the state’s Office of Consumer Credit Commissioner (OCCC), and implement licensing provisions in HB 1442, which took effect September 1. The amendments adopted by the Commission in August “maintain the current one-year term, the current…
On August 15, NYDFS announced a settlement with a student loan servicer and its parent company to resolve allegations that the companies failed to comply with state financial services law requirements when servicing, purchasing, and originating student financing agreements. According to the consent order, the student loan servicer—which, among other things, services student financing agreements that constitute retail…
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…
New Jersey establishes Office of the Student Loan Ombudsman, provides student loan servicer regulations
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…
On May 10, the Office of the Illinois Secretary of State published in the Illinois Register a notice by the Department of Financial and Professional Regulation of adopted amendments to certain parts of its Residential Mortgage License Act. In general, the amendments impact independent loan processor licensing as well as residential mortgage loan bond and advertising requirements. Specifically, an…
On May 7, the Georgia governor signed HB 185, which amends various state laws related to financial institutions, including the licensing requirements for mortgage lenders and mortgage loan originators. The bill specifies that any licensed mortgage lender is authorized to engage in all activities that are authorized for a mortgage broker and therefore, is not required…
On May 19, the Office of the State Bank Commissioner of Kansas published in the Kansas Register an amended Administrative Interpretation No. 1004 covering Guaranteed Asset Protection (GAP). In general, the interpretation provides guidance for creditors to follow to exclude the cost of GAP waiver agreements from the calculation of the finance charge with consumer credit sales and closed-end…
On May 16, the Iowa governor signed SF 619, which, among other things, amends the state’s service contract provider provisions to require any provider that issues, offers for sale, or sells motor vehicle service contracts in the state to be licensed as a service company. Persons who provide support services or work under the direction of…
For a company to obtain a license in a state other than its state of incorporation or formation, it typically first needs to be authorized to do business in the state. Becoming authorized to do business in a state is commonly referred to as foreign qualification (“foreign” here refers to another state, not another country).…
On May 14, the Vermont governor signed S.154, which, among other things, amends the state’s mortgage licensing statute. Specifically, the legislation repeals various provisions of the state’s licensing process for mortgage lenders and servicers and replaces the provisions with a new chapter (8 V.S.A. Chapter 72) intended to streamline the law and bring more clarity and…
Prospective licensees will be excited to hear about the addition of another license to the NMLS, which we understand will be the South Dakota non-residential mortgage lender license. According to a contact at the South Dakota Division of Banking, the license is expected to be added on or around July 1. While a transition plan…
Our panel discusses best practices and strategies for navigating licensing issues that can complicate M&A, joint ventures, and subsidiary management. [Checkpoint Webcast]
On April 4, the Nationwide Multistate Licensing System (NMLS) issued a set of guidelines and FAQs clarifying federal SAFE Act amendments created by the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), to establish “temporary authority” provisions for mortgage loan originators (MLOs). According to the guidelines, temporary authority to act as a loan originator while…
On April 29, the New Jersey governor approved several bills related to mortgage lending in the state. According to a press release issued by the governor, the package of nine bills addresses the state’s foreclosure crisis and includes the following: A 4997, known as the Mortgage Services Licensing Act, requires persons who act as mortgage servicers—either directly…
On April 18, the Georgia governor signed HB 212, which amends the Official Code of Georgia Annotated relating to the licensing of mortgage lenders and mortgage brokers. Under the Act, the following persons, who meet certain requirements, are exempt from state licensing requirements: “retailers and retail brokers of manufactured homes, mobile homes, or residential industrialized buildings.”…
On April 18, the Oklahoma governor signed SB 720 to create the Oklahoma Small Lenders Act (the Act) and establish a framework to license and regulate small loan lenders in the state through the Department of Consumer Credit (ODCC). Beginning on January 1, 2020, any licensee under the Deferred Deposit Lending Act (DDLA) may begin an application…
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…
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…
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…
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…
We discuss how to get the most value from association memberships and participation in industry peer groups with guests from RegList, MSBA, CMBA, and AFSA. [Checkpoint Webcast]
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…
On April 2, the New Mexico governor signed HB 584, which amends the Collection Agency Regulatory Act and the Motor Vehicle Sales Finance Act to, among other things, require sales finance companies obtain a license to conduct business in the state. The bill outlines licensing requirements for such companies. State and national banks authorized to do…
On March 31, the New York governor announced the passage of the state’s FY 2020 Budget, which includes an amendment (known as “Article 14-A” or “the Act”) to the state’s banking law with respect to the licensing of private student loan servicers. Article 14-A requires student loan servicers to be licensed by the New York Department of Financial Services…
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…
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…
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…
On March 26, the West Virginia governor signed HB 3143, which amends the requirements for regulated consumer lending in the state to provide that a person making or taking assignment of consumer loans, or “undertaking direct collection of payments,” must first be licensed by the state’s Commissioner of Banking. Among other things, the act also adjusts…
On March 19, the Montana governor signed HB 107, which amends the Montana Mortgage Act to, among other things, add capital requirements for mortgage servicers and net worth requirements for mortgage originators licensed in the state. The bill provides that a failure to meet or maintain the outlined standards could result in a license application denial…
On March 25, the Colorado governor signed SB 46, which amends the definition of an appraisal management companies (AMC) in sections of the Colorado Revised Statutes to align with the definition in federal law. The act, with the exception of section 3, takes effect immediately. On March 19, the Arkansas governor signed SB 393, which amends the…
On March 19, the Virginia governor signed HB 2690, which requires money transmitters to be licensed through the National Multistate Licensing System and Registry (NMLS). The bill also (i) amends the definition of a “member” subject to the law’s requirements to include a person who owns or controls ten percent (previously it was five) of…
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…
On March 8, the Virginia governor signed HB 2284, which amends Title 6.2 Chapter 20 of the Code of Virginia to exempt banks, savings institutions, credit unions, and individuals licensed to practice law in the state from the licensing requirements applicable to persons that provide debt management plans. Additionally, persons licensed under the amended chapter are…
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…
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…
On March 6, the Colorado Governor signed SB 19-23, which provides limited exemptions from the state’s securities registration and licensing requirements for persons dealing in certain types of digital tokens. The “Colorado Digital Token Act” (the Act) provides issuer exemptions for digital tokens sold for a “consumptive purpose”—the token is used in exchange for a good,…
On February 26, the Arkansas Governor signed SB 188, which amends certain provisions of the state’s Fair Mortgage Lending Act (the Act) to comply with recent developments in federal law. Among other things, the amendments, which take effect 90 days after adjournment, include (i) modifying the Act’s definition of an “applicant” and “licensee” to now include…
On February 19, the Wyoming Governor signed HB 57, which creates a fintech sandbox program in the state for companies to test innovative financial products and services. Wyoming is the second state to introduce a regulatory sandbox program, following Arizona’s sandbox introduction last March. (Previously covered by InfoBytes here.) Under the “Financial Technology Sandbox Act” (the…
APPROVED founders Tim Lange and Katy Ryan provide a rundown of the highlights from the 2019 NMLS Annual Conference & Training. [Checkpoint Webcast]
On February 14, the Conference of State Bank Supervisors (CSBS) agreed to implement specific recommendations from the CSBS Fintech Industry Advisory Panel. The Advisory Panel, which was formed in 2017 and consists of 33 fintech companies, works to “identify and remove unnecessary pain points in the multistate experience of fintechs and other nonbanks operating regionally or nationwide…
On February 13, the Arkansas Governor approved SB 187, which amends the state’s Uniform Money Services Act as it relates to money transmission licensees and currency exchanges. Among other things, the amendments (i) revise surety bond and net worth amounts money transmission licensees are required to maintain; (ii) specify application and renewal requirements and deadlines; (iii)…
California licensees have a pair of deadlines approaching in March. The annual report for California Residential Mortgage Lending Act licensees is due by March 1, and the annual report for California Financing Law licensees is due by March 15. Both reports cover activity conducted by licensees in calendar year 2018 and the information provided is…
Christopher D’Angelo has been hired by New York Attorney General Letitia James to serve as the Chief Deputy Attorney General for Economic Justice. D’Angelo previously served as the associate director of the CFPB’s Supervision, Enforcement and Fair Lending Division and played a key role in some of the CFPB’s highest profile enforcement matters. In his…
On February 11, the U.S. District Court for the District of New Jersey denied a motion to dismiss a putative class action against a debt collector and its legal counsel, holding that the plaintiff debtor made a plausible claim under the FDCPA that the debt collector was required by New Jersey’s Consumer Financing Licensing Act (NJCFLA) to…
There are 11 states that have enacted some form of the Uniform Consumer Credit Code (UCCC), a model law that regulates all aspects of consumer credit — from advertising to collection. UCCCs include a licensing and/or notification requirement and, depending on the scope of activities engaged in, as well as available exemptions, some companies may…
Virtual currency is not considered “money” in Pennsylvania; platforms do not need money transmitter license
The Pennsylvania Department of Banking and Securities recently published guidance stating that virtual currency, including “Bitcoin,” is not considered “money” under the state’s Money Transmitter Act (MTA). According to the guidance, only “fiat currency,” or currency issued by the U.S. government is considered “money” under the MTA and that to transmit money under the MTA, (i) fiat…
Buckley attorneys Kathryn L. Ryan, Moorari K. Shah, and Frida Alim authored a Equipment Leasing & Finance Magazine article, “Equipment finance: Understanding licensing obligations,” which discussed an overview of licensing considerations and trends in state enforcement activity with respect to equipment finance. Click here to read the full article.
On January 11, the Georgia Department of Banking and Finance (Department) announced the issuance of a Final Order taken against a Florida-based money transmitter and two of its officers for allegedly failing to, among other things, timely file suspicious activity reports (SARs) or conduct required background checks on covered employees. Following a hearing, the Department issued the Final…
Our panelists discuss some of the most commonly required reports and related requirements, submission deadlines, and tips for submission. [Checkpoint Webcast]
On December 19, 2018, the Ohio Governor signed Substitute House Bill 489 (HB 489), which amends the Ohio Residential Mortgage Lending Act (RMLA) to, among other things, require a person acting as mortgage servicer to obtain a Residential Mortgage Lending Act Certificate of Registration in the state, unless exempt from the RMLA. The amendments define a “mortgage…
Nevada’s administrative code requires that a qualified employee be present at the in-state office of a licensed mortgage broker or banker for the majority of the time that the office is open to the public. In the past, the Nevada Division of Mortgage Lending has permitted certain mortgage broker and banker licensees to satisfy this…
We are excited to share the upcoming dates and topics for the first half of our 2019 Checkpoint webcast series. Please mark your calendars and sign-up for email updates to receive registration details as we get closer to the individual events. If you have questions about the Checkpoint webcast series, suggestions for topics to cover…
Maryland Court of Appeals holds state licensing requirement is a “statutory specialty” with 12-year statute of limitations
On December 18, the Court of Appeals of Maryland held that the licensing requirement, §12-302, of the Maryland Consumer Loan Law (MCLL) is a “statutory specialty” and causes of action under it are accorded a 12-year statute of limitations period. The decision results from a question of law posed to the appeals court by the U.S. District…
On December 19, the Illinois governor signed HB 5542, which amends the state’s Residential Mortgage License Act of 1987 (the Act) to make various changes to state licensing requirements. Among other things, the amended Act (i) clarifies the definition of a “bona fide nonprofit organization”; (ii) provides a list of prohibited acts and practices; (iii) stipulates…
There are two types of NMLS company users: account administrators, who have full access to a company’s NMLS record; and organization users, who have limited access. And while any individual can be an organization user, NMLS specifies in the NMLS Policy Guidebook and elsewhere that only employees can be account administrators. For example, the NMLS…
Washington State Department of Financial Institutions adopts amendments concerning student education loan servicers
On December 3, the Washington State Department of Financial Institutions (DFI) issued a final rule adopting amendments including student education loan servicing and servicers as activities and persons regulated under the state’s Consumer Loan Act. According to DFI, the amendments will provide consumers with student education loans a number of consumer protections and allow DFI to monitor servicers’ activities.…
APPROVED is excited to announce that we have launched a YouTube channel! Our pilot video describes who we are and how our technology-enabled approach to licensing sets us apart from other service providers. Please subscribe to our channel to stay in the loop on new developments.
On October 24, the Pennsylvania governor signed HB 2453, which amends the state’s Check Casher Licensing Act to make several changes in the licensing process for check-cashing entities. Specifically, the amendments (i) allow for check-cashing licenses to be issued for up to 14 months; (ii) require a licensee to demonstrate that it is conducting business in…
Our panelists review some key licensing developments from 2018 and offer predictions about what 2019 might bring. [Checkpoint Webcast]
Just a friendly reminder that the mortgage call report for the third quarter of 2018 is due by November 14. The report must be filed by any company that maintains one or more specified licenses (typically, mortgage licenses) in the Nationwide Multistate Licensing System. Note that even if your company does not engage in mortgage-related…
The 2019 Nationwide Multistate Licensing System renewal period will open on November 1 and close on December 31. The NMLS Resource Center has state-by-state renewal checklists and three renewal handbooks specifically written for companies, individuals, and money services business, debt, and consumer finance companies. Prior to the opening of the renewal period, there are a…
Our panelists cover tips on how to best navigate the license renewal process, as well as 2018 renewal deadlines and requirements. [Checkpoint Webcast]
The California Department of Business Oversight has notified California Financing Law licensees and California Residential Mortgage Lending Act (CRMLA) licensees of their annual assessment obligations for fiscal year 2018-2019. The assessments cover each licensee’s share of the cost of administering the programs under the California Financial Code and must be paid by October 31, 2018.…
Washington state Attorney General says debt buyers are collection agencies, files lawsuit for operating without a license
On September 21, the Washington state Attorney General announced that it filed a lawsuit against several collection agencies and their owner (defendants) for allegedly purchasing and suing on charged-off consumer debts in violation of the Washington Collection Agency Act (WCAA) and the Washington Consumer Protection Act (WCPA). The complaint alleges that defendants bought and then obtained judgements on…
On October 1, without notice, the New York State Department of Financial Services and the Nationwide Multistate Licensing System announced that the NMLS would begin receiving new application and transition filings for the check casher license, the commercial check casher license, and the virtual currency license in New York. The announcement from the NYSDFS explained…
On October 1, NYDFS announced the commencement of the final phase of its initiative to manage the license application and regulation of all non-depository financial institutions operating in the state through the Nationwide Multistate Licensing System and Registry (NMLS). As such, NYDFS now allows financial services companies holding check casher and virtual currency business activity licenses to…
On September 30, the California governor signed AB 237, which establishes a pilot program under the California Financing Law with the stated purpose of encouraging lenders to provide affordable small dollar loans to consumers. Significant features of the program include: (i) an increase to the upper limit of a permissible loan, from $2,500 to $7,500; and…
Fingerprints for purposes of conducting a criminal background check may be required of any number of individuals associated with a licensee/license applicant: from employees to senior officers to ultimate owners. The fingerprinting process typically involves an individual making an appointment with and traveling to an authorized fingerprint technician who will then capture the individual’s fingerprints…
Colorado regulator exempts certain cryptocurrency exchanges from money transmitter licensing requirements
On September 20, the Colorado Department of Regulatory Agencies Division of Banking (Division) issued interim guidance exempting certain types of cryptocurrency exchanges from the state’s money transmitter licensing requirements. Under the interim guidance — which outlines the Division’s interpretation of Colorado’s existing Money Transmitters Act (the Act) — the Division determined that the Act regulates the transmission…
On September 21, the Federal Reserve Board (Board) issued a notice of proposed rulemaking seeking comment on the repeal of certain provisions of regulations that incorporate the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), which the Board states are intended to reflect the transfer of rulemaking authority to the CFPB by the Dodd-Frank Act. Specifically, the…
On September 14, the California governor approved AB 38 amending the state’s Student Loan Servicing Act (Act). The Act provides for the licensure, regulation, and oversight of student loan servicers by the California Department of Business Oversight (CDBO). Among other things, the amendments: (i) clarify the circumstances under which the Commissioner of the CDBO may deny a…
On September 19, the Massachusetts Division of Banks (the Division) issued an Industry Letter to provide guidance regarding a new mortgage licensing exemption for “bona fide nonprofit affordable homeownership organizations.” These bona fide nonprofits, who must have as their primary purpose helping qualified low-income individuals build, repair, and purchase affordable housing, may apply to the…
District of Columbia moves to dismiss lawsuit alleging city’s student loan servicer regulations are preempted by federal law
On September 7, the District of Columbia filed a memorandum in support of its motion to dismiss a lawsuit claiming that the city’s regulations and requirements for student loan servicers are preempted by federal law. The plaintiff, a D.C.-based trade group whose membership consists of national student loan servicers, argues in its complaint that various provisions of District of Columbia…
Following the U.S. Supreme Court’s decision in Murphy v. NCAA, a number of states are expected to legalize some form of sports betting. Each state will institute its own regulatory compliance framework, with many likely borrowing heavily from those states with more mature sports betting industries (like Nevada and New Jersey). Those seeking to establish…
Surety bonds are a common license application requirement. A surety bond binds the company named in the bond to the regulator named in the bond, ensuring that the amount of the bond can be recovered against the company in the event of harm caused by the company’s violation of applicable law. Some surety bond amounts…
The Minnesota Department of Commerce (the Department) has revised its position on who is required to be licensed as a sales finance company under the Minnesota Motor Vehicle Retail Installment Sales Act. (“Sales finance company” is defined, in part, as “a person engaged … in the business of purchasing retail installment contracts in [Minnesota] from…
1st Circuit holds homeowners who defaulted on an allegedly unlicensed mortgage loan cannot escape time bars for their claims
On August 23, the U.S. Court of Appeals for the 1st Circuit held that homeowners who defaulted on a refinance loan on their Massachusetts property could not void the transaction or enjoin their property’s foreclosure sale. The appellate court determined that the homeowners’ claims that the lender violated the Fair Debt Collection Practices Act, the Real Estate…
On August 24, New Jersey Governor Phil Murphy signed AB 2035, which amends the New Jersey Residential Mortgage Lending Act and certain related statutes. Among other technical and clarifying changes, the amendments create a framework for the issuance of a “transitional mortgage loan originator license,” which would allow an “out-of-state mortgage loan originator” or a “registered…
Financial services companies that have applied for a license issued by the New York State Department of Financial Services are likely familiar with the personal questionnaire that control persons are required to complete. The questionnaire requests a wealth of information—from residential, work, and education history, to the names of parents and dependents. Recently, the NYSDFS…
On August 14 and 10, the Illinois governor signed HB 4404 and SB 2615, which amend the Illinois Residential Mortgage License Act of 1987. Effective immediately, SB 2615, now Public Act 100-0795, requires, among other things, that mortgage loan advertisements in Illinois, whether print or electronic, reference the Nationwide Multistate Licensing System (NMLS) and Registry’s Consumer…
Conference of State Bank Supervisors announces single, national exam for mortgage loan originator licensing
On August 8, the Conference of State Bank Supervisors announced that all states and U.S. territories now use a single, common exam to assess mortgage loan originators (MLOs) in order to simplify the licensing process and streamline the mortgage industry. MLSs who pass the National SAFE MLO Test with Uniform State Content (National Test) will no longer be required…
Maryland Court of Appeals holds foreign securitization trusts do not need to be licensed in the state as collection agencies
On August 2, the Maryland Court of Appeals, in a consolidated appeal of four circuit cases, held that foreign statutory trusts are not required to obtain a debt collection agency license under the Maryland Collection Agency Licensing Act (MCALA) before filing foreclosure actions in state circuit courts. The decision results from two cases consolidated before the Court…
Georgia Department of Banking and Finance issues cease and desist over licensing violation involving bitcoin
On July 26, the Georgia Department of Banking and Finance (Department) announced the issuance of a cease and desist order against a bitcoin trading platform. According to the Department, the company allegedly engaged in the sale of payment instruments and money transmissions without first acquiring a valid license or applicable exemption in violation of the state’s financial institutions code.…
Buckley attorneys Andrew Louis, Kathryn Ryan, and Tim Lange authored a SportsBusiness Journal article, “Improving your odds on the gambling frontier,” which examined the challenges that gaming companies face as they expand sports betting into new states. Click here to read the full article. Originally published in SportsBusiness Journal; reprinted with permission.
On June 14, the governor of Connecticut signed HB 5490, which makes various amendments to the state’s banking statutes, including standardizing various requirements across several mortgage and nonmortgage licensing types. Among other things, the law (i) extends the commissioner’s authority over certain mortgage-related licensees (mortgage lenders, brokers, and originators; correspondent lenders, and processors or underwriters) to…
On June 8, the governor of New Hampshire signed HB 1687, to clarify the applicability of various state banking and consumer credit laws. Among other changes, the law (i) clarifies information required to be provided in a note, agreement, or promise to pay that is entered into by a small, title, or payday lender; (ii) prohibits…
WASHINGTON, DC (June 5, 2018) APPROVED, Buckley Sandler’s technology-enabled, fixed-fee service that assists financial services firms and fintech companies in obtaining and maintaining state-required licenses, today announced the addition of three directors to its leadership team — Tanya Anthony, Derek Schultz, and Dan Ladd. Anthony will focus on mortgage and consumer lending, vendor management, and…
District Court rules South Dakota banking regulator exceeded authority in revoking payday lender’s license
On May 29, the U.S. District Court for the District of South Dakota denied a motion to dismiss filed by the director of the South Dakota Division of Banking (defendant), ruling that the defendant exceeded his authority when he revoked a payday lender’s (plaintiff) operating license instead of initiating a cease and desist order, and that he…
On May 15, the Louisiana governor signed SB171, which amends a state statute that prescribes when a person acquiring or controlling ownership interest in a consumer loan licensee must obtain approval from the state’s commissioner. Under SB171, written approval by the commissioner must now be received for any person acquiring or controlling “ percent or more…
On May 15, the Maryland governor signed legislation to establish requirements for lenders making covered loans in the state. Among other things, HB1297 increases the threshold for which a loan is subject to small lending requirements within the Maryland Consumer Loan Law (MCLL) from $6,000 to $25,000. The law also prohibits (i) lenders who are not licensed…
On May 3, the Georgia governor signed into law an act amending provisions of the Official Code of Georgia applicable to the state’s Department of Banking and Finance (Department) and financial institutions generally, including banks, credit unions, licensed sellers of payment instruments, and mortgage lenders and brokers. Among other things, HB 780 grants the Department and/or…
On May 2, the New York Senate introduced a bill that, if passed, would establish a new article under the state’s banking law to provide for the chartering and regulating of internet lending services corporations (on-line lenders). Among other things, the “New York limited state charter for internet lending services,” S8340, would (i) authorize the New York Department…
On April 25, the New York Department of Financial Services (NYDFS) announced the next phase in its initiative to manage the licensing and regulation of all nondepository financial institutions operating in the state. Beginning May 1, budget planners and premium finance companies will be able to transition their licenses to the Nationwide Multistate Licensing System and Registry…
On March 22, the West Virginia governor signed HB 4285, which amends provisions under the West Virginia Safe Mortgage Licensing Act (Act) related to licensing requirements for mortgage loan originators, including those related to continuing education. HB 4285, among other things, (i) updates requirements for applicants registering for mortgage loan originator licenses; (ii) requires nonresident mortgage…
John C. Redding quoted in Powersports Finance article, “Less Regulation Prompts Startups to Offer Leases Versus Loans”
John C. Redding was quoted on March 22, 2017 in a Powersports Finance article, “Less Regulation Prompts Startups to Offer Leases Versus Loans.” The article discussed the increased interest in leasing versus loans and traditional financing, due to less regulatory requirements. The article stated, “Leases include a ‘money factor,’ rather than an annual percentage rate (APR), according…
On March 12, the Wyoming governor signed SF 26, which amends the preexisting licensing law to authorize the state’s collection agency board to use information from, and furnish information to, the nationwide multistate licensing system (NMLS) to assist in the regulation of the debt collection industry. In addition, among other things, SF 26 allows the board…
John Kromer was quoted in Katie Rucke’s PennRecord article, “Commonwealth Court Rules Against Florida Online Lenders,” on March 21, 2016. A recent Commonwealth Court decision against Florida-based companies should serve as a warning to lenders that do business over the Internet, a Washington, D.C., attorney says. The Commonwealth Court earlier this year upheld a cease-and-desist order first…
On March 1, the South Dakota governor signed H.B.1082, amending South Dakota’s money lending licenses statute. Pursuant to H.B. 1082, engagement in the “business of lending money,” for which a license is required, is expressly defined not to include engagement in: (i) “any seller-financed transaction for the sale of assets to a purchaser”; or (ii) “any…
WASHINGTON, DC (March 7, 2018) – Buckley Sandler LLP today formally announced the launch of APPROVED, a new approach to licensing for financial services companies. Buckley Sandler is building upon years of financial services experience and licensing know-how to offer APPROVED, a technology-enabled, fixed-fee service that will help regulated businesses — mortgage companies, payments companies, consumer…
WASHINGTON, DC (December 4, 2017) – Buckley Sandler LLP announced today that Tim Lange has joined the firm’s Washington, DC office as Director of Licensing. He will be a member of the firm’s Licensing & Chartering practice, which advises mortgage companies, payments companies, online lenders, fintech companies, debt collectors, banks, and other financial services institutions on meeting licensing requirements and understanding…
Special Alert: OCC issues highly-anticipated guidance for evaluating charter applications from fintech companies
On March 15, 2017, the Office of the Comptroller of the Currency (OCC) issued further guidance regarding how it will evaluate applications by fintech companies to become Special Purpose National Banks (SPNBs). In its release, the OCC summarized the more than 100 comments it received in response to its December 2016 white paper and provided…