Maine Modifies Provisions to Facilitate the Multistate Licensing Process
by: Lee Greenberg
The state of Maine recently modified several provisions of the Maine Consumer Credit Code (S.P. 643 and 678) to facilitate the multistate licensing process. The modified provisions are effective on July 15, 2014 (or 90 days after legislative adjournment).
Under the new legislation, the administrator must receive and act on all applicants for licenses to make supervised loans. A supervised loan is a consumer loan, including a loan made pursuant to open end credit, in which the rate of the finance charge, calculated according to the actuarial method, exceeds 12 ΒΌ% per year, or which is secured by an interest in real estate.
The law mandates the following lender requirements regarding applications for licenses:
- Lenders whose activities include making residential mortgage loans must complete an application for a license to make supervised loans electronically, through the nationwide mortgage licensing system and registry (NMLS). Licenses expire annually on December 31st and must be renewed through NMLS. An application for an initial license must be accompanied by a fee of $250 and the annual renewal application must be accompanied by a fee of $100. An application for an initial license or renewal for a place of business other than that of the applicant’s first licensed location must be accompanied by a fee of $100. Further, an applicant must pay an NMLS processing fee. Nonprofit organizations exempt from taxation and engaged in the financing of housing for low-income people under a program designed specifically for that purpose are required to pay an initial licensing fee of $20 and a renewal fee of $10, plus the applicable NMLS processing fee.
- An application for an initial license by a lender whose activities do not include making or arranging residential mortgage loans must be accompanied by a $500 fee and a renewal application must include a $200 fee. The license is granted for a 2-year period and expires on September 30th of the second year. An application for an initial license or renewal for a place of business other than that of the applicant’s first licensed location must be accompanied by a fee of $200.
In addition, the new law requires a person desiring to engage or continue business in Maine as a loan broker to apply for a license with the administrator. The law mandates the following broker requirements regarding applications for licenses:
- A loan broker whose activities include arranging for or obtaining an extension of credit for a residential mortgage loan must apply for the license electronically through the NMLS. The initial application must include a fee of $300 and a renewal application must include a fee of $150. An application for a branch location license for a location other than that of the first licensed location from which the applicant conducts business must be accompanied by a license fee of $150 and an annual renewal fee of $75. The applicant must also pay NMLS fees as established by NMLS. Licenses expire on December 31st of each year and must be renewed through NMLS. Applications received after the due date are subject to an additional fee of $100.
- A loan broker whose activities do not include arranging for or obtaining an extension of credit for a residential mortgage loan must apply for the license directly with the administrator. Initial licenses are granted for a period not to exceed 2 years and expire on January 31st. The initial application must include a fee of $600, and a biennial relicensing application must include a fee of $300. An application for a branch location license for a location other than that of the first licensed location from which the applicant conducts business must be accompanied by a license fee of $300 and a biennial renewal fee of $150. Applications received after the due date are subject to an additional fee of $100.
- A licensed loan broker may conduct business only through a mortgage loan originator who possesses a current, valid license.
- The administrator may direct each licensee to file composite annual and quarterly reports relating to all brokered loans arranged or obtained by that licensee.
About the Author
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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