AB 617

This bill makes changes related to the Department of Financial Institutions'

regulation of collection agencies, consumer lenders, and sellers of checks and

standardizes certain DFI administrative procedures related to these and other

licensed financial services providers.

Nationwide Multistate Licensing System and Registry

The bill authorizes DFI to utilize the Nationwide Multistate Licensing System

and Registry to administer its licensing functions, and standardizes certain

administrative procedures, with respect to the following: consumer lenders; payday

lenders; collection agencies; sales finance companies; money transmitters (currently

known as sellers of checks); mortgage bankers and mortgage brokers; adjustment

service companies; community currency exchanges; and insurance premium finance

companies (collectively, licensed financial services providers). The NMLSR is a

multistate system developed and operated for the licensing and registration of

persons in financial services industries.

Under current law, DFI participates in the NMLSR (formerly known as the

Nationwide Mortgage Licensing System and Registry) only with respect to the

licensing of mortgage loan originators and certain other functions related to

mortgage loan originators, mortgage bankers, and mortgage brokers. Current law

allows DFI to establish relationships or contracts with the NMLSR or other entities

designated by the NMLSR to collect and maintain records and process transaction

or other fees related to mortgage loan originators, mortgage bankers, and mortgage

brokers. With respect to licensing mortgage loan originators, DFI may require that

an applicant submit any form, fee, or other information directly to the NMLSR and

may authorize the NMLSR to perform functions related to the licensing of mortgage

loan originators. DFI may also provide to the NMLSR information relating to

mortgage loan originator licensing or responsibilities. DFI may also rely on the

NMLSR to establish application or reporting deadlines for mortgage loan originators

and other requirements related to mortgage loan originators. DFI may also use the

NMLSR as an agent for requesting and distributing information, including to other

governmental agencies. In general, information that is confidential or privileged

when it is provided to the NMLSR remains confidential or privileged.

The bill expands DFI's participation in the NMLSR and requires DFI to utilize

the NMLSR with respect to the licensing and regulation of licensed financial services

providers, including requiring applicants and licensees to provide information

directly to the NMLSR and to comply with application and reporting deadlines

established by the NMLSR. These applicants and licensees must register with, and

maintain a unique identifier issued by, the NMLSR. The bill provides DFI with

authority relating to the NMLSR that is additional to the NMLSR authority

described above. DFI may require an applicant or licensee to submit identity

information, a credit report, an investigative background report, fingerprints for