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
OCC revises Comptroller’s Licensing Manual
On January 19, the OCC announced an updated version of the “Branches and Relocations” booklet of the Comptroller’s Licensing Manual . According to Bulletin 2023-04, the revised booklet replaces booklet of the same title issued in October 2019. The revised booklet, among other things: (i) reflects...
InfoBytesOhio will grant occupational licenses to applicants experienced in another state
On January 2, the Ohio governor signed SB 131 , which, among other things, requires “an occupational licensing authority to issue a license or government certification to an applicant who holds a license, government certification, or private certification or has satisfactory work experience in...
InfoBytesDFPI modifies Student Loan Servicing Act proposal
On January 6, the California Department of Financial Protection and Innovation issued modified proposed regulations under the Student Loan Servicing Act (Act), which provides for the licensure, regulation, and oversight of student loan servicers by DFPI (covered by InfoBytes here ). Last September...
InfoBytesWashington issues work from home regulations
Recently, the Washington Department of Financial Institutions adopted regulations implementing amendments to the Consumer Loan Act and the Mortgage Broker Practices Act. The amendments, among other things, allow licensed companies, subject to enumerated conditions, to permit licensed mortgage loan...
InfoBytesDFPI orders online platform to cease offering crypto-related products
On December 21, the California Department of Financial Protection and Innovation (DFPI) announced it has ordered an online platform offering several crypto-related services and products to desist and refrain from violating the California Securities Law and the California Consumer Financial...
InfoBytesCollection firm to pay $100,000 for operating without a license
On December 1, the Connecticut Department of Banking (Department) fined a collection law firm $100,000 and ordered it to cease and desist from collection activity for operating without a valid license. According to the order, in August, the Department issued a temporary order to cease and desist, a...
InfoBytesDFPI issues reminder to debt collection licensing applicants
Recently, the California Department of Financial Protection and Innovation (DFPI) issued a reminder that starting January 1, 2023, the agency will begin approving applications under the Debt Collection Licensing Act. As previously covered by InfoBytes , the California governor signed AB 156 in...
InfoBytesNYDFS proposes virtual currency firms to pay supervision fees
Recently, NYDFS announced it is seeking public comment on a proposed rule establishing how certain licensed virtual currency businesses would be assessed for the costs of their supervision and examination. According to NYDFS, the proposed regulation establishes a provision in the state budget...
InfoBytesDFPI announces investigation into crypto platform
On November 10, the California Department of Financial Protection and Innovation (DFPI) announced that it is investigating “the apparent failure” of a crypto asset platform, which recently announced that it filed for bankruptcy. According to DFPI, it takes “oversight responsibility very seriously...
InfoBytesDFPI revokes crypto lending company's license; issues notice to suspend a different crypto lending company
On Fecember 19 , the California Department of Financial Protection and Innovation (DFPI) announced that it has moved to revoke a cryptocurrency lender’s license. According to DFPI revoking the license "is the result of the department’s examination, which found that the New Jersey-based finance...
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
Our Licensing Team
Partners
Counsel
Recent Blog Posts
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January 25, 2023
OCC revises Comptroller’s Licensing Manual
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January 18, 2023
Ohio will grant occupational licenses to applicants experienced in another state
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January 12, 2023
DFPI modifies Student Loan Servicing Act proposal
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January 4, 2023
Washington issues work from home regulations
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December 23, 2022
DFPI orders online platform to cease offering crypto-related products