On January 10, 2025, the Maryland Office of Financial Regulation (OFR) issued guidance significantly expanding licensing requirements for assignees of residential mortgage loans in Maryland. The guidance stems from an April 2024 court ruling and raises important considerations for entities involved in the secondary mortgage market.Continue Reading Maryland Expands Licensing Requirements for Mortgage Loan Assignees

On August 2, New Hampshire passed House Bill 1243 (the “Bill”), which substantially amends its Motor Vehicle Retail Installment Sales Act (the “Act”). The Bill is effective as of August 2.Continue Reading New Hampshire Updates Motor Vehicle Retail Installment Act: What Lenders Need to Know

Recently, the Louisiana lawmakers and regulators have taken steps to legalize operations in the state involving virtual currencies. On June 15, the Louisiana governor signed a bill that, effective August 1, 2022, will allow financial institutions and trust companies to provide virtual currency custody services to their customers as long as they satisfy certain requirements on risk-management and compliance. On June 20, the Louisiana Office of Financial Institutions (OFI) published proposed rules on licensing and regulation of virtual currency businesses in the state pursuant to the Louisiana Virtual Currency Business Act, which went into effect on August 1, 2020.
Continue Reading Louisiana Approves Virtual Custody Services and Proposes Virtual Currency Business Licensing Rules

On February 11, the California DFPI issued an opinion letter in response to an EWA provider’s request for a specific ruling from the DFPI about whether the company’s EWA solution is subject to licensure under the California Financing Laws (CFL) and California Deferred Deposit Transaction Law (CDDTL).  In response, the DFPI concluded that the provider does not originate or facilitate loans subject to the CFL or CDDTL, and that neither the provider nor its employer partners are subject to the CFL or CDDTL’s licensing requirements.
Continue Reading DFPI Approves EWA Provider

Pursuant to Financial Code section 22159(a), all DFPI California Financing Law licensees are required to submit the annual report on or before March 15, 2022, even if the licensee had no business activity in the calendar year 2021.  Failure to submit the annual report by the due date will result in penalties pursuant to Financial Code section 22715(b).
Continue Reading DFPI Reminds Licensees to Submit Annual Reports by March 15

Maine’s Governor, Janet Mills, recently signed S.P. 205/L.D. 522, which amended the Consumer Credit Code to protect consumers from predatory and fraudulent lending practices.  In particular, the amendments include an anti-evasion provision under which purported bank agents or service providers are deemed “lenders” for the purposes of statute.  The amendment contains the following key provisions:

  • Covered entities “may not engage in any device, subterfuge or pretense to evade the requirements of this Article, including, but not limited to…making, offering, assisting, or arranging a debtor to obtain a loan with a greater rate of interest, consideration or charge than is permitted by this Article through any method.”
  • Loans that violate these provisions are “void and uncollectible as to any principal, fee, interest or charge.”
  • A person qualifies as a lender if it:
    • holds, acquires or maintains, directly or indirectly, the predominant economic interest in the loan;
    • markets, brokers, arranges or facilitates the loan and holds the right, requirement or first right of refusal to purchase the loan or a receivable or interest in the loan; or
    • the totality of the circumstances indicate that the person is the lender and the transaction is structured to evade the requirements of this Article.
  • The circumstances that would weigh in favor of an entity being deemed the lender include, without limitation, when the entity:
    • indemnifies, insures or protects an exempt entity for any costs or risks related to the loan
    • predominately designs, controls or operates the loan program, or
    • purports to act as an agent or service provider for an exempt entity while acting directly as a lender in other states.
  • Lenders who violate these provisions may not furnish information concerning a debt associated with the violation to a consumer reporting agency, nor may it refer the associated debt to a debt collector.

Continue Reading Maine Enacts “True Lender” Legislation, Amends Consumer Credit Code to Include Anti-Evasion Provisions