Tennessee Amends Provisions Relating to the Licensing of Non-Depository Financial Institutions

The state of Tennessee has amended provisions of its Residential Lending, Brokerage and Servicing Act affecting the licensing of certain non-depository financial institutions. The amendments set deadlines for applicants for a certificate of registration, licensees and license holders (collectively referred to hereinafter as “applicants”) to renew their respective licenses to operate. In addition, the amendments delineate the powers furnished to the commissioner and the impact of the confidentiality and privacy agreements between applicants of multi-state automated licensing system and government officials. These provisions become effective at different times ranging from July 1, 2017 to April 1, 2019.

The amendments affect applicants by setting different expiration and renewal dates requirements in accordance with their controlling sections (please see the respective sections of the bill for the exact required dates of expiration and renewal). Nevertheless, it is evident that the goal of the amendments is to standardize renewal and expiration dates. Following this pursuit, all applications submitted through this bill will expire December 31 of the same year. Due to this change all applications should be standardized in the near future to follow a streamlined process: (1) the earliest date of submission for the required documents will be November 1st; (2) the latest date of submission for the required documents will be December 31st; and (3) applicants may continue operating until their application have been approved or denied.

In addition to the standardization of the expiration and renewal dates, the commissioner has been given powers to efficiently operate the multi-state automated licensing system. This includes promulgating rules regarding the system, establishing agreements to operate the system and take further actions as necessary. These amendments also clarify that the confidentiality and privacy agreements adhering to the information furnished by the applicants will remain intact if a consumer finance government official requests the information.

For your convenience, the following link has been provided for a full reading of the bill: https://legiscan.com/TN/text/SB1202/2017

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