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
Hawaii enacts licensing legislation
On June 17, the Hawaii governor signed two bills into law. HB 2113 permits money transmitter license applicants to submit to either a state or federal criminal history record check, rather than both, upon application. SB 1105 establishes that, in addition to application fees, and any fees required...
InfoBytesIllinois amends Collection Agency Act provisions
On May 27, the Illinois governor signed HB 5220 , which makes various amendments to provisions related to the state’s Collection Agency Act. Among other things, the amendments strike language repealing specified provisions and add, amend, and strike certain definitions, including amending “...
InfoBytesMassachusetts amends mortgage lender/broker licensing provisions
Recently, the Massachusetts Office of Consumer Affairs and Business Regulation, Division of Banks announced final amendments effective May 27 to certain provisions of Regulation 209 CMR 42.00, which establishes procedures and requirements for the licensing and supervision of mortgage lenders under...
InfoBytesFlorida amends money service businesses provisions to define “control persons”
On May 26, the Florida governor signed HB 389 , which amends provisions related to money service businesses and related licensing requirements. The bill, among other things, replaces the term “officers” with “control person” and expands the definition of “control person” to designate the type of...
InfoBytesArizona passes money transmitter licensure legislation
On May 20, the Arizona governor signed SB 1580 , which revises provisions related to money transmitters. The bill, among other things, provides that “a person may not engage in the business of money transmission or advertise, solicit or hold itself out as providing money transmission unless the...
InfoBytesFlorida amends consumer finance loan provisions
On May 20, the Florida governor signed SB 546 , which amends certain provisions related to the making of consumer finance loans. The provisions allow persons applying for a license to make and collect loans under the Florida Consumer Finance Act (FCFA) “to provide certain documents in lieu of...
InfoBytesDFPI says debt collection licenses “unavoidably delayed”
On May 23, the California Department of Financial Protection and Innovation (DFPI) sent a notice to applicants and prospective applicants announcing unforeseen delays in the issuance of licenses under the Debt Collection Licensing Act. The FBI informed DFPI that new changes are needed to state...
InfoBytesConnecticut amends banking statutes
On May 17, the Connecticut governor signed S.B. 268 , which makes various revisions to state banking statutes. Among other things, the bill establishes that a money transmission license is not transferable or assignable, but a licensee may be acquired under certain circumstances. The bill also...
InfoBytesFlorida amends MSB provisions to define “control persons”
On May 12, the Florida governor signed HB 273 , which amends provisions related to money services business activities. The bill, among other things, revises provisions related to prohibited activities without a license and other requirements for written contracts between a money transmitter or...
InfoBytesGeorgia updates license exemption provisions
On May 2, the Georgia governor signed HB 891 , which updates provisions related to licensing exemptions. The bill establishes that, starting on July 1, in addition to all other fees, license fees, fines, or other charges now or hereafter levied or assessed on the licensee, there is a fee of 0.125...
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
Recent Blog Posts
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June 27, 2022
Hawaii enacts licensing legislation
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June 15, 2022
Illinois amends Collection Agency Act provisions
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June 15, 2022
Massachusetts amends mortgage lender/broker licensing provisions
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June 3, 2022
Florida amends money service businesses provisions to define “control persons”
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May 27, 2022
Arizona passes money transmitter licensure legislation