On August 15, the Illinois Department of Financial and Professional Regulation proposed regulations to implement recent amendments to the Residential Mortgage License Act of 1987 (RMLA) covering “shared appreciation agreements.” The proposed revisions treat these agreements as residential mortgage loans subject to RMLA licensing and compliance requirements.Continue Reading Illinois Proposes Regulations for Shared Appreciation Agreements Under the Residential Mortgage License Act
On August 7, Illinois enacted Senate Bill 2457, amending the Collection Agency Act and removing its January 1, 2026 repeal date under the Regulatory Sunset Act. The law retains the licensing framework for collection agencies and debt buyers while revising definitions, exemptions, and enforcement provisions under the Act.Continue Reading Illinois Expands Collection Agency Act with New Licensing and Enforcement Provisions
On July 29, the Massachusetts Attorney General issued updated business guidance and a webinar explaining the state’s new “junk fee” regulations under the Massachusetts Consumer Protection Act, which take effect on September 2. The guidance breaks down the rule’s disclosure and cancellation obligations into checklists and identifies narrow carve-outs for businesses already subject to comparable federal or state rules.Continue Reading Massachusetts AG Issues Final Guidance Ahead of September 2 Junk-Fee Rule Enforcement
Two states have recently finalized significant updates to their money transmission laws, signaling continued nationwide alignment with the Conference of State Bank Supervisors’ Model Money Transmission Modernization Act (MTMA). Georgia and Nebraska’s new rules impose heightened compliance, documentation, and oversight requirements for licensees operating in each state.Continue Reading Georgia and Nebraska Update Money Transmission Statutes
On July 21, the CFPB withdrew its plan to repeal rules that provide procedures for state officials to notify the Bureau before initiating enforcement actions under the Consumer Financial Protection Act (CFPA). The CFPB cited “significant adverse comments” as the reason for the withdrawal and indicated it will consider the feedback in a subsequent rulemaking.Continue Reading CFPB Withdraws Rule to Eliminate State Enforcement Notification Requirements
On July 10, Massachusetts Attorney General Andrea Joy Campbell announced a $2.5 million settlement with a student loan company to resolve allegations that its underwriting practices violated the Massachusetts Consumer Protection Act and the Equal Credit Opportunity Act, including through the use of artificial intelligence models that produced disparate impacts on protected groups.Continue Reading Massachusetts AG Settles with Student Loan Lender on AI-Based Fair Lending Violations
On June 30, 2025, Connecticut Governor Ned Lamont signed Public Act No. 25-66, enacting broad revisions to Connecticut’s money transmission statutes. The new law, effective October 1, 2025, updates definitions, expands consumer protections for virtual currency users, and imposes new restrictions on the state’s ability to use digital assets.Continue Reading Connecticut Updates Money Transmission Law to Cover Digital Wallets and Virtual Currency
On June 30, California Governor Newsom has signed AB 130, a budget trailer bill related to housing. This legislation includes new requirements for mortgage servicers of subordinate mortgages, defined in the bill, and took effect immediately. The text of the new statute, which comprises a very small portion of the full bill, may be found (here).Continue Reading California Enacts New Mortgage Servicing and Foreclosure Standards
On July 9, the New York Department of Financial Services (NYDFS), joined by regulators from five other states, entered into a multistate settlement with a money transmitter headquartered in New York. The $4.2 million consent order resolves allegations arising from a multistate examination conducted by the Conference of State Bank Supervisors (CSBS) and the Money Transmitter Regulators Association (MTRA) citing alleged violations of the Bank Secrecy Act (BSA), FinCEN regulations, and the CFPB’s Remittance Transfer Rule.Continue Reading NYDFS and Other State Regulators Impose $4.2 Million Penalty on Money Transmitter
On June 26, Rhode Island Governor Dan McKee signed companion bills S 0169 and S 0172 into law, twin measures that amend the state’s Deceptive Trade Practices Act and Interest and Usury statute to impose some of the nation’s strictest limits on the reporting and collection of medical debt. S0169 becomes effective January 1, 2026, while S0172 took effect immediately upon passage.Continue Reading Rhode Island Enacts Ban on Reporting Medical Debt to Credit Bureaus