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
CSBS announces release of NMLS MCR Version 6 in Q1 2024
On October 13, 2023, the Conference of State Bank Supervisors (CSBS) announced the Nationwide Multistate Licensing System & Registry (NMLS) will be rolling out a new version of its Mortgage Call Report (MCR). In an effort to standardize mortgage company data at the state level, and minimize the...
InfoBytesCalifornia enacts licensing requirements for digital asset businesses, regulation of crypto kiosks
On October 13, the California Governor signed AB 39 , which will create a licensing requirement for businesses engaging in digital financial asset business activity. Crypto businesses will need to apply for a license with California’s Department of Financial Protection and Innovation (DFPI). The...
InfoBytesOregon enacts registration requirements for data brokers
On July 27, the governor of Oregon signed HB 2052 (the “Act”) into law, effective upon passage. The Act provides that a “data broker” cannot collect, sell or license brokered personal data within Oregon unless they first register with the Department of Consumer and Business Services. Brokered...
InfoBytesDFPI concludes MTA licensure not required for data processor
On July 25, the California Department of Financial Protection and Innovation (DFPI) released a new opinion letter concluding that a company that merely receives payment instructions, orders, or directions to transmit money or monetary value does not constitute “receiving money for transmission”...
InfoBytesHawaii amends money transmitter provisions
On July 3, the Hawaii governor signed HB 1027 (the “Act”) into law, amending several provisions relating to the Money Transmitters Modernization Act. The Act adds and amends several definitions. Changes include defining “money,” “receiving money or monetary value for transmission,” and “tangible...
InfoBytesIllinois amends mortgage licensing provisions
On June 30, HB 2325 (the “Act”) was signed by the Illinois governor to amend The Residential Mortgage License Act of 1987. According to the amendments, residential mortgage licensees in Illinois must register every physical office where they conduct business with the Secretary of Financial and...
InfoBytesNevada requires licenses for EWA providers
The Nevada governor recently signed SB 290 (the “Act”) outlining several requirements for providers of earned wage access (EWA) products. EWA products allow individuals to access their earned income before receiving their regular paycheck. To operate such services in Nevada, providers must obtain a...
InfoBytesConnecticut amends requirements for small lenders
On June 29, SB 1033 (the “Act) was enacted in Connecticut to amend the banking statutes. The Act, among other things, (i) redefines “small loan”; (ii) redefines “APR” to be calculated based on the Military Lending Act and include the cost of ancillary products among other fees as part of the “...
InfoBytesNevada to regulate student loan servicers and lenders
On June 14, the Nevada governor signed AB 332 (the “Act”) which provides for the licensing and regulation of student loan servicers. The Act also implements provisions for the regulation of private education loans and lenders. Among other things, the Act requires, subject to certain exemptions,...
InfoBytesMaryland says crypto enforcement could affect money transmitter licensure
On June 22, the Maryland Commissioner of Financial Regulation issued an advisory on recent enforcement actions by Maryland and federal securities enforcement agencies against cryptocurrency-related businesses that could potentially impact businesses pursuing money transmitter licensure. The actions...
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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October 20, 2023
CSBS announces release of NMLS MCR Version 6 in Q1 2024
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October 20, 2023
California enacts licensing requirements for digital asset businesses, regulation of crypto kiosks
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August 3, 2023
Oregon enacts registration requirements for data brokers
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August 3, 2023
DFPI concludes MTA licensure not required for data processor
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July 14, 2023
Hawaii amends money transmitter provisions