Licensing
Practice Overview
Buckley advises on a broad spectrum of licensing matters for state and federally chartered banks, mortgage lenders, mortgage brokers, mortgage servicers, secondary market investors, collection agencies, consumer finance companies, student loan companies, private equity companies, money services businesses, real estate brokers, property management companies, title insurers, escrow agencies, third-party loan fulfillment providers, fintech companies, auto lenders, foreign banks, and other financial companies in the U.S.
Our practice encompasses a variety of credit products, including home, consumer, commercial, and auto loans and leases, offering in-depth knowledge of the federal and state laws and regulations applicable to our licensed clients. Such laws include the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), Fair Debt Collection Practices Act (FDCPA), and Consumer Financial Protection Bureau’s (CFPB) Regulations G and H.
Our attorneys provide strategic and structural licensing counsel to a broad spectrum of clients — including startup companies, private equity funds, and Fortune 500 companies. Our experience includes analyzing business plans to identify licensing and regulatory implications; preparing surveys to identify licensing and regulatory implications in all 50 states, the District of Columbia, and most territories; advising strategic purchasers or targets regarding acquisitions, including due diligence of companies, assets and portfolios, transactional structuring, and identifying and obtaining associated state and federal regulatory approvals.
A core of our practice includes preparation and submission of company, branch, and, as applicable, individual license applications for virtually all credit-related licenses, as well as assisting with Secretary of State filings, trade name registrations, and other local and business registrations. Our attorneys have worked daily in the Nationwide Multistate Licensing System & Registry (NMLS) on behalf of clients since its inception in 2008 and are well versed in the intricacies of the NMLS. We also assist clients with preparing and submitting applications for government-sponsored enterprises (GSEs) and federal agency approvals (e.g., Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), the U.S. Department of Housing and Urban Development (HUD), U.S. Department of Veteran’s Affairs (VA), and U.S. Department of Agriculture (USDA)). In addition, we prepare periodic reports and Mortgage Call Report (MCR) filings; perform risk audits; assist with CFPB and state examinations, including Multi-State Mortgage Committee (MMC) exams; respond to regulatory enforcement actions; and advise on the requirements for reporting litigation, administrative actions, and other significant events.
As a complement to our broad knowledge base, we maintain strong working relationships with state licensing regulators and industry leaders, including the American Association of Residential Mortgage Regulators (AARMR), where the firm is a member of the association’s Industry Advisory Council, and the Conference of State Bank Supervisors (CSBS), and the Money Transmitter Regulators Association (MTRA).
Representative matters are as follows:
- Worked with a private equity firm on all aspects of its acquisition of a mortgage lending and servicing platform, including obtaining necessary approvals from state licensing regulators for asset acquisition, change of address, change of name, change of officers, and transfer of mortgage loan originator employees
- Drafted comment letters to various federal and state legislation and regulatory initiatives
- Prepared a response to a notice of administrative action sent by a state licensing regulator, negotiated a settlement agreement resolving the matter, and assisted with the reporting of the matter to other state licensing regulators, GSEs and agencies
- Performed a preemption review and 50-state state law gap analysis of state laws governing direct auto lending activities of a federal thrift in light of changes to federal preemption under the Dodd-Frank Act
- Worked with state licensed mortgage servicer to respond to multi-state mortgage exam
- Worked with private equity firm on acquisition of licensed money transmitter, including due diligence of target licensee and obtaining necessary approvals from state licensing regulators for change of control
- Represented publicly traded company in meetings with Government National Mortgage Association (GNMA) and the New York Department of Financial Services (NYDFS) in connection with acquisition of state licensed mortgage lender
- Completed comprehensive 50-state review of state licensing requirements and Federal SAFE Act considerations applicable to third-party loan fulfillment providers operating offshore, including preparation of detailed statutory analysis supplemented by agency insight obtained directly from state mortgage regulators
Articles
"Betting on sports wagering? Double down on licensing prep" by Andrew R. Louis, Kathryn L. Ryan, and Brian W. Bartholomay (Sports Litigation Alert)
Sports betting has flourished in the year since a Supreme Court decision gave states the right to legalize it, with eight states now offering some form of sports betting and almost 30 in various stages of weighing legislation that would do so. Some of the new players are borrowing from existing...
Articles"Equipment finance: Understanding licensing obligations" by Kathryn L. Ryan (Equipment Leasing & Finance Magazine)
Licensing Considerations, Generally The applicability of state licensing laws may depend on multiple factors, including transaction structures, business entity types and whether the activities are appropriately classified as “commercial” or another type of non-consumer transaction. Although the...
ArticlesC-Suite Financial Services Review: Navigating state money-transmission laws
Financial technology companies’ entry into the payment, money transmission, consumer and commercial finance, and virtual-currency markets has spotlighted byzantine state money-transmission laws. State regulators are generally responsible for licensing and supervising the activities of money...
C-Suite Review"Improving your odds on the gambling frontier" by Andrew R. Louis, Kathryn L. Ryan, and Tim Lange (SportsBusiness Journal)
The Supreme Court has laid the groundwork for sports betting in any state that wants it, but those predicting an imminent land grab by betting houses may not fully appreciate the deliberate and occasionally painstaking process that most states will likely implement. Careful planning now to...
ArticlesSpecial Alert: Maryland Ruling Opens New Front in Battle Over Bank Partnership Model
On June 23, the Maryland Court of Appeals affirmed a lower court judgment holding that a non-bank entity assisting consumers obtain loans from an out-of-state bank and then repurchasing those loans days later qualifies as a “credit service business” under the Maryland Credit Services Business Act (...
Articles
News & Blogs
Fintech fined over interest charges billed as tips and donations
A California-based fintech company recently entered separate consent orders with California, Connecticut, and the District of Columbia to resolve allegations claiming it disguised interest charges as tips and donations connected to loans offered through its platform. The company agreed to (i) pay a...
InfoBytesArizona amends licensing provisions
On May 19, the Arizona governor signed HB 2010 to amend certain sections of the Arizona revised statutes relating to the Department of Insurance and Financial Institutions. Amendments make changes to several licensing provisions, including the length of time a license remains active and licensure...
InfoBytesDFPI examines whether some payment services are exempt from MTA
The California Department of Financial Protection and Innovation (DFPI) recently released a new opinion letter covering aspects of the California Money Transmission Act (MTA) relating to whether certain payment services are exempt or subject to licensure. The redacted opinion letter examines three...
InfoBytesIowa modernizes money transmission provisions
The Iowa governor recently signed HF 675 to revise certain provisions of the Uniform Money Transmission Modernization Act. The Act is designed to eliminate unnecessary regulatory burden and harmonize the licensing and regulation of money transmitters with other states. Among other things, the Act...
InfoBytesMaryland eliminates separate licensing requirement for branches
On May 8, the Maryland governor signed HB 686 to eliminate a requirement that collection agencies and certain non-depository financial institutions must maintain separate licenses for branch locations. The Act now allows such entities to conduct business at multiple licensed locations under a...
InfoBytesMaryland amends student financing company registration
On May 8, the Maryland governor signed HB 913 to amend certain provisions relating to student financing company registration and reporting requirements. Among other things, the Act defines the term “student financing company” to mean “an entity engaged in the business of securing, making, or...
InfoBytesIndiana enacts Money Transmission Modernization Act
On May 4, the Indiana governor signed SB 452 to amend Indiana code governing financial institutions. Among other things, the Act amends a provision to require the Department of Financial Institutions to adopt emergency rules no later than June 30, 2024, to authorize certain licensees (or certain...
InfoBytesIndiana enacts Money Transmission Modernization Act
On May 4, the Indiana governor signed SB 458 , which repeals current Indiana code governing the licensing and regulation of money transmitters by the Department of Financial Institutions. The bill adds a new chapter codifying the Money Transmission Modernization Act, and outlines provisions to be...
InfoBytesDFPI says escrow trust accounts are not stored value under MTA
The California Department of Financial Protection and Innovation recently released a new opinion letter covering aspects of the California Money Transmission Act (MTA) and the Escrow Act related to persons engaging in business as an escrow agency within the state. The redacted opinion letter...
InfoBytesNorth Dakota establishes requirements for residential mortgage servicers
On April 12, the North Dakota governor signed HB 1068 , which outlines provisions relating to residential mortgage loan servicers. The Act provides that a person may not engage in residential mortgage loan servicing in the state without being licensed by the commissioner. This applies to servicers...
InfoBytes
Press Releases & Announcements
APPROVED expands team with two key additions
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...
Press ReleasesBuckley Sandler launches APPROVED licensing service
WASHINGTON, D.C. (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-...
Press ReleasesTim Lange Joins Buckley Sandler as Director of Licensing
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,...
Press Releases
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Recent Blog Posts
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May 26, 2023
Fintech fined over interest charges billed as tips and donations
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May 26, 2023
Arizona amends licensing provisions
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May 26, 2023
DFPI examines whether some payment services are exempt from MTA
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May 26, 2023
Iowa modernizes money transmission provisions
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May 11, 2023
Maryland eliminates separate licensing requirement for branches