02-030-707 Me. Code R. § IV

Current through 2024-51, December 18, 2024

Section 030-707-IV - GENERAL PROVISIONS

A.Application Contents. Each applicant for a license or renewal shall supply the following information and documentation either to NMLS or to the Administrator on such forms as the Administrator requires:

1. The type of service as a loan broker in which the applicant is involved.

2. The applicant's full legal name and address of the home or principal office.

3. The full legal name of the applicant and the address(es) from which the business of the applicant will be conducted.

4. The following information regarding associated individuals and the applicant:

a. For sole proprietorships, full legal name, address, date of birth, and Social Security Number of the proprietor.

b. For partnerships, full legal names, addresses, dates of birth and Social Security Numbers of all partners.

c. For all entities, full legal names, addresses, date of birth and Social Security Numbers of all controlling persons.

d. For corporations and limited liability companies:

i. The names and addresses, dates of birth, and Social Security Numbers of all officers; and

ii. The federal Tax Identification Number of the entity, state of incorporation/organization and, if a foreign entity, a copy of the authorization from Maine Secretary of State to do business in Maine as a foreign entity.

5. Name and address of the designated agent upon whom service of process may be made in this State.

6. A list of all creditors for which the applicant arranges loans for Maine consumers, and the total amount of the loans arranged for those creditors during the most recent calendar year.

7. Identification of each financial institution in which the applicant maintains a consumer trust account and the account number assigned by the institution to the account.

8. Whether any owner, partner, executive officers, manager who will be in charge of the location to be licensed, or holder of a controlling interest has been involved in material litigation and/or convicted of a crime for the ten (10) year period prior to this application. If so, for each such instance, provide the title of the action, jurisdiction, date of disposition, and a detailed explanation of the individual's involvement.

9. A criminal history report for each owner, partner, executive officers, manager who will be in charge of the location to be licensed or holder of a controlling interest

10. A professional resume for each principal officer, owner, and controlling person of the applicant.

11. The following documents:

a) A completed bond, using the form posted on the Bureau's website;

b) A sample copy, completed so as to reflect a hypothetical transaction, of the signed written agreement (contract) containing a description of services offered, guarantees or promises of refund, effective term of agreement, terms of payment, and the "Notice to Consumer," as required by 9-A M.R.S. §10-302;

c) A sample copy, showing provision for proof of receipt by the consumer, of the written disclosure, setting forth material consumer protections as required by 9-A M.R.S. § 10-303;

12. Each application must be accompanied by evidence of a surety bond, in a form approved by the Administrator, and in the aggregate amount of $25,000.00, to run to the State of Maine for use by the State and any person or persons who may have a cause of action against a loan broker. Notwithstanding the foregoing requirement, the aggregate amount of a surety bond accompanying the application of a loan broker conducting business solely as a facilitator of a refund anticipation loan or refund anticipation check must be $10,000.00. The term of the bond must run concurrently with the period of time during which the license will be in effect.

13. A consumer report on each owner, officer, and controlling person of the applicant.

14. Any additional information required by NMLS when licensing transfers to NMLS.

B.Administrative authority granted to NMLS. To effectuate the transition of all loan broker licensing to NMLS, NMLS is authorized to collect fees and remit those fees to the Bureau, collect fees for its processing costs, process and maintain license records, and require use of NMLS uniform electronic and paper forms.

C.Licensing periods.

1.Loan Brokers. Previously, licenses for loan brokers which do not make residential mortgage loans were granted for a two-year period and expired on January 31. Effective with this rule, licenses are granted for a one-year period commencing January 1 and expiring on December 31 of the same year. Loan brokers who arrange residential mortgage loans are already licensed through NMLS for the same license term.

2.Supervised lenders and loan brokers that hold a valid Maine license as of November 1, 2023.

a.Transitional period. The period November 1, 2023 through December 31, 2023 is considered a transitional period, during which all existing loan brokers which do not arrange residential mortgage loans must transition from the State of Maine's licensing system and must obtain licenses through NMLS.

b.One-month late transitional period. All renewal applications from existing licensees received between January 1, 2024 and January 31, 2024 will be processed, but applicants will be assessed a late fee of $100.00.

c.Deadline. Renewal applications will not be accepted after January 31, 2024. All applications received after that date will be considered new applications.

d.NMLS processing fees. At the time existing licensees apply to NMLS for a renewal license, they must pay the NMLS processing fee directly to NMLS.

e.Licenses which expire on January 31, 2024. A licensee whose current license expires on January 31, 2024 must still transition to NMLS by December 31, 2023.

f.State of Maine renewal license application fees. Fees assessed to all renewal applicants after the effective date of this rule are as follows:

i. Loan Broker renewal fee: $200.00;

ii. Loan Broker branch office renewal fee: $100.00;

iii. Licensees with current licenses scheduled to expire on January 31, 2025 must still transition to NMLS by December 31, 2023 but will not be charged a fee from the Bureau for calendar year 2024. The fee to register on NMLS will be required.

3.Applicants that do not hold a valid Maine loan broker license as of the effective date of this rule. ("new applicants")

a.NMLS processing fees. Applicants that submit applications after the effective date of this rule and prior to November 1, 2023 shall do so on forms required by the Administrator. Any license granted after the date of this rule and prior to November 1, 2023 shall expire on December 31, 2023.

b.Terms of licenses. All licenses will be for the term of the calendar year. New licenses issued November 1 or later each year shall be valid through December 31 of the following year.

c.State of Maine new license application fees. Fees assessed to new applicants (as well as existing licensees that do not renew by January 31, 2023 and re-apply after January 31, 2023) are as follows:

i) Loan Broker application fee: $300.00;

ii) Loan Broker branch office application fee: $150.00.

4.New licenses and renewal licenses issued following completion of the transition to NMLS

a.NMLS to determine license and renewal procedures. New licenses and renewal licenses issued after November 1, 2023 shall be processed pursuant to the procedures established by NMLS.

b.NMLS to determine time periods for license validity. New licenses and renewal licenses issued after the effective date of this rule shall be valid for the time periods established by NMLS.

c.Payment of fees. Application, renewal and processing fees will be paid directly to NMLS.

d.Late renewal. Renewal applications received after December 31 of any year will be considered late. The status of such licenses will be changed to "terminated - failed to renew" or an equivalent status. Such licenses may be reinstated if a renewal application is received between January 1 and the end of February, together with all renewal fees and late fee of $100.00. Beginning March 1 of any year, renewal requests will not be processed, and companies must apply for a new license.

5.Changes to existing licensing information. If any information reported by a licensee changes during a period of licensure, the licensee must amend its information on file with NMLS within 30 days of the occurrence of the change or such shorter period as required by NMLS rules or procedures. Notice of a change of control of the licensee must be provided to the Bureau by advance change notice on NMLS and the Bureau must approve any change of control before the same becomes effective.

6.Unique identifier shown. A loan broker must list its NMLS unique identifier in any advertising that references the availability of loans or loan-related services.

7.Routine technical rule. This is a routine technical rule as authorized by 9-A M.R.S. §6-105 -A(1) and 9-A M.R.S. §10-201(4).

02-030 C.M.R. ch. 707, § IV