State News

This topic consolidates legislative summaries of new and revised state laws pertaining to licensing, originating, and servicing mortgage loans. 




October 15, 2018

Connecticut Banking Dept. takes no-action position on new demographic data reporting requirement for sales finance companies

Ballard Spahr LLP--Alan S. Kaplinsky

In August 2018, we reported about significant changes to Connecticut’s licensing laws for consumer financial services providers that were to take effect on October 1, 2018.  In our blog post, we highlighted a new requirement (which appeared to be unprecedented), for sales finance companies to acquire and maintain information about the ethnicity, race, and sex of applicants...

Read more

October 15, 2018

Even after Harvey, Houston keeps adding new homes in floodplains

National Mortgage News--Houston Chronicle--Mike Morris and Matt Dempsey

One in five new homes permitted in Houston in the year after Hurricane Harvey is in a flood plain — some on prairie developed for the first time after the storm — even as new rainfall data showed existing flood maps understate the risk posed by strengthening storms.

The city Planning Commission also...

Read more

October 12, 2018

Connecticut Department of Banking Takes No-Action Position Regarding Collection of Ethnicity, Race, and Sex Data by Sales Finance Companies

CounselorLibrary Alert

On September 28, the Connecticut Department of Banking issued a memorandum announcing its no-action position regarding one section of HB 5490/Public Act 18-173. That section requires sales finance companies to acquire and maintain adequate records of the ethnicity, race, and sex of any applicant or co-applicant for a retail installment contract, beginning October 1, 2018. The memo states that...

Read more

Webinar: Agency and Regulatory Reporting Essentials

October 09, 2018

Vermont exempts bank partners from loan solicitation license for commercial loans

Ballard Spahr LLP--John D. Socknat 

We have been following closely efforts by state regulators, state legislatures and the courts to restrict, or in some cases prohibit, bank model lending programs, so the recent guidance from the Vermont Department of Financial Regulation (“Department”)  is welcome news.  On September 13, 2018, the Department issued an Order exempting loan solicitation companies from licensure when they...

Read more

October 08, 2018

California law establishes small dollar lending pilot program

Buckley Sandler, LLP--InfoBytes Blog

On September 30, the California governor signed AB 237, which establishes a pilot program under the California Financing Law with the stated purpose of encouraging lenders to provide affordable small dollar loans to consumers. Significant features of the program include: (i) an increase to the upper limit of a permissible loan, from $2,500 to $7,500; and (ii)...

Read more

October 08, 2018

New York prohibits auto lenders from remotely disabling a vehicle without providing notice

Buckley Sandler, LLP--InfoBytes Blog

On October 2, the New York governor signed SB 2484, which prohibits auto lenders from remotely disabling a vehicle without first providing notice of the disabling to the debtor. The act amends the state’s uniform commercial code and the general business law, in significant part, by: (i) defining a “payment assurance device” (“any device installed in a...

Read more

October 08, 2018

California Amends Provisions Regarding Foreclosure

Bankers Advisory--Rhona Kyeyune

The State of California amended its provisions relating to foreclosure as well as made changes to its Homeowner Bill of Rights. These provisions are effective on January 1, 2019.

The amendment prohibits an entity that foreclose on more than 175 real properties during the prior reporting year from recording a notice of default or notice of...

Read more

ACES Intelligent Questionnaires

October 05, 2018

Student loan servicers’ obligations under Maryland’s “Ombudsman Act” now in effect

Ballard Spahr LLP--Sarah T. Reise

On September 28, 2018, the Maryland Commissioner of Financial Regulation issued a notice advising companies servicing student loans of Maryland borrowers to provide their contact information to the state’s new Student Loan Ombudsman by November 15, 2015.

Maryland’s “Financial Consumer Protection Act of 2018” went into effect on October 1, 2015. The Act imposes a number...

Read more

October 05, 2018

California Further Expands Protections to Servicemembers, Restricts Credit Reporting About Active Duty Status, Requires Written Responses to Requests for Relief under the Statute; and Enacts New Criminal Penalties

Ballard Spahr LLP--Rachel R. Mentz

On September 19, 2018, California enacted AB-3212.  The Bill amends the California Military and Veterans Code to expand the protections offered to qualifying servicemembers under state law and to impose new criminal penalties for certain violations of its provisions.  Some of the key changes, which go into effect January 1, 2019, are as follows:

Expanded...

Read more

October 02, 2018

California Strikes Again, Imposing Cost Disclosure Requirements for Small Business Loans

troutman sanders--Alan D. Wingfield; Paige S. Fitzgerald; Troy K. Jenkins

Non-bank lenders to small businesses need to be on alert after Governor Brown signed California Senate Bill 1235 into law on September 30, 2018. The new law, Commercial Financing: Disclosures,” requires specific disclosures be made when commercial financing offers of $500,000 or less are presented to commercial borrowers. The new requirements will become effective when the...

Read more