LOAN ARRANGER REQUIREMENTS DEFECTS CODE
LOAN ARRANGER REQUIREMENTS DEFECTS LICENSE
LOAN ARRANGER REQUIREMENTS DEFECTS SERIES

LOAN ARRANGER REQUIREMENTS DEFECTS SERIES

However, that statute is nestled in a series of laws relating to “Mortgage Loan Companies and Loan Brokers”.

LOAN ARRANGER REQUIREMENTS DEFECTS CODE

Here’s the link:Īdvance_Fee_Loan_Broker_License-New-App-Checklist.pdfĤ) ARKANSAS: Interestingly, Arkansas defines “advance fee” broadly as ‘‘ any consideration which is assessed or collected prior to the closing of a loan by a loan broker.’’ Arkansas Code Annotate § 23-39-401(2019) ( emphasis added). The process is fairly inexpensive and simple. But if your transaction is under $10,000, and deemed a “consumer loan”, and you take what is clearly an advance fee, you should consider registration. It does not mention commercial transactions.

It is also unlikely that this will be an issue if the transaction is commercial, for the “registration” instructions state that the “license” provided by registering authorizes “consumer loan brokering, consumer loan lending, private student loan lending, debt management/counseling and debt negotiation”. It appears likely that these rules only apply to real property secured transactions, given the language of the rules, regulations, opinions and documents I have reviewed. Advance fees do not include the actual cost of charges paid to a third party which are incurred in making real estate loans secured in whole or in part by a mortgage deed of trust or other security instrument on real estate, including charges for a preliminary title search, title examination and report, title insurance premiums, property survey and appraisal fees.

A person who is not exempt under subsection B of this section and who advertises for, solicits or purports to be willing to make or procure a loan or extension of credit for an advance fee is presumed to be engaged in the business of an advance fee loan broker.Īdvance fee' means a fee, interest or other consideration directly or indirectly received by a person prior to a loan of money or extension of credit or a commitment to loan money or extend credit being made by the person. those under $10,000).Īny person who acts as an advance fee loan broker shall register with the superintendent as provided in this chapter. There are Arizona laws requiring that you “register” with the superintendent if you are an “advance fee loan broker” making consumer loans (i.e.

LOAN ARRANGER REQUIREMENTS DEFECTS LICENSE

Seems unlikely that any commercial lender or loan broker will be “regularly engaged in the business of consumer loans”, so it would appear that a license is unnecessary. Consumer lenders and brokers need licenses, and, as always, banks, saving and loans, credit unions, and the like are exempt. There is an exemption in Arizona, however, for a “person who is not regularly engaged in the business of making consumer loans”.Īrizona Revised Statute 6-602(A)(3) (2021). I imagine this does not apply to most commercial transactions, which typically involve much more than $1500.Ģ) ALASKA: A person may not engage in the business of making loans of money, credit, goods, or things in action in the amount or of a value of $25,000 or less and charge, contract for, or receive on the loan a greater rate of interest, discount, or consideration than the lender would be permitted by law to charge if the person were not a licensee under this chapter, without first obtaining a license from the department.Īs is often the case, banks, savings and loans, trust companies, building and loan associations and credit unions are exempt for the licensing requirement.ģ) ARIZONA: Like many other states, Arizona considers small loans, in this case those under $10,000, to be consumer loans, regardless of whether the money is used for personal or business purposes. Anyone who makes such loans without a license is guilty of a misdemeanor. Code 5-18-4(a), a license is required for anyone in the business of lending amounts of less than $1500. Penalties for Failure to Comply With State Disclosure Laws ġ) ALABAMA: Under the Alabama Small Loan Act, Ala. Georgia commercial financing disclosure laws – Went into effect January 1, 2024 New York commercial financing disclosure law – Went into effect August 1, 2023Ĭonnecticut commercial financing disclosure laws – Went into effect January 1, 2024 Utah commercial financing disclosures – Went into effect January 1, 2023įlorida disclosure law and broker law - Went into effect July 1, 2023 Virginia sales-based financing disclosure law – Went into effect July 1, 2022Ĭalifornia commercial financing disclosures – Went into effect December 9, 2022 A State-by-State Analysis of License Requirements for Lenders and Brokers

Loan arranger requirements defects