Delaware Modifies Provisions Regarding Licensing and Fees
The state of Delaware has recently modified its provisions relating to licensing and fees for mortgage brokers and licensed lenders. These provisions are effective immediately.
The state of Delaware has enacted House Bill 199, which amends various chapters under Title 5 of the Delaware Code to facilitate the modernization of certain practices and procedures at the Office of the State Bank Commissioner.
Under current law, mortgage loan originators licensed by the State Bank Commissioner are required to provide fingerprints in connection with license applications. The new provisions authorize the State Bank Commissioner to require applicants for a variety of additional financial services licenses to provide fingerprints for purposes of criminal background checks. In addition to mortgage loan brokers and licensed lenders, these include money transmitters, check cashers, and motor vehicle sales finance companies.
For any of the above licenses, the Commissioner may require the applicant, the spouse of the applicant, a principal of, individual who is a person in control of, or proposed responsible individual of the applicant, or any other individual associated with the applicant and the proposed licensed activities, to provide the Commissioner or the Commissioner’s designee with a complete set of fingerprints for purposes of a criminal background investigation.
The bill also authorizes the State Bank Commissioner to expand the Office’s participation in a multi-state automated licensing system, by using that system to process license applications for money transmitters, check cashers, and motor vehicle sales finance companies. That same system is currently used for processing license applications for mortgage loan brokers, licensed lenders, and mortgage loan originators.
Lastly, this Act establishes a sunset provision of July 1, 2019 for §2509E of Title 6 concerning the maximum rate of interest on debts for federal workers in response to a federal government shutdown.
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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