Revision: Jan. 27, 2017, 9:14 a.m.
HB 457-FN - AS INTRODUCED
2017 SESSION
17-0522
08/03
HOUSE BILL 457-FN
AN ACT relative to consumer credit division entities.
SPONSORS: Rep. Hunt, Ches. 11
COMMITTEE: Commerce and Consumer Affairs
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I. Adds certain requirements for mortgage services.
II. Expands the definition of small loans.
III. Requires money transmitters to register through the Nationwide Multistate Licensing System and Registry.
This bill is a request of the banking department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0522
08/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to consumer credit division entities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 License Required; Mortgage Servicers Added. Amend RSA 397-A:3, X to read as follows:
X. A branch office of a mortgage banker, [or] mortgage broker, or mortgage servicer shall be licensed prior to conducting business at such location.
2 License Application; Mortgage Servicers. Amend RSA 397-A:5, III(a) to read as follows:
(a) The mortgage banker, mortgage broker, or mortgage servicer license issued for the licensee's principal place of business shall be referred to as a "principal office license.'' Each additional license issued for New Hampshire mortgage lending, [or] brokering, or servicing activity occurring in a location that is separate from the licensee's principal place of business shall be referred to as a "branch office license.''
3 Examination Costs; Consumer Credit Division Entities; Reports. Amend RSA 383:11, II(c) to read as follows:
(c) From consumer credit division entities. Each entity subject to the supervision of the commissioner under the provisions of RSA 361-A, RSA 397-A, RSA 399-A, RSA 399-D, and RSA 399-G, shall be charged and shall pay such proportion of the balance applicable to the consumer credit administration division under the department's accounting unit designation as the gross revenue received from the total dollar volume of loans made, originated, funded, or brokered, or debt adjustment contracts entered into, or mortgage servicing fees received or money transmitted from each entity's New Hampshire business bears to the total gross revenue received from the total dollar volume of the loans made, originated, funded, or brokered, or debt adjustment contracts entered into, or mortgage servicing fees received, or money transmitted, from New Hampshire business by all entities during the preceding calendar year ending December 31, as shown by their [annual] reports to the commissioner.
4 Examinations; Intent to Deceive. Amend RSA 397-A:12, XVI to read as follows:
XVI. No licensee or person subject to investigation or examination under this section may knowingly and with intent to deceive withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information. Such actions shall be fraud under the chapter.
5 Small Loan; Definition. Amend RSA 399-A:1, XX to read as follows:
XX. "Small loan'' means a title loan, payday loan, open-end loan, or closed-end loan that:
(a) Is $10,000 or less; [and]
(b) Has an annual percentage rate of 10 percent or more except for the lawful fees, if any, actually and necessarily paid out by the lender to any public officer, for filing or recording in any public office any instrument securing such loan and except for the reasonable costs, charges, and expenses, including court costs actually incurred in connection with a repossession of the security or an actual sale of the security; and
(c) Is for personal, family, or household use.
6 Exemptions. Amend RSA 399-A:3, I to read as follows:
I. Any person lawfully engaged in business as permitted by the laws of this state, the laws of any other state, or federal law [or of the United States] relative to banks, trust companies, insurance companies, savings or building and loan associations, or credit unions, or to loans made by them.
7 Money Transmitters Added to the Nationwide Multistate Licensing System and Registry. Amend the introductory paragraph of RSA 399-G:4, I(a) to read as follows:
(a) To be considered for licensing, each person shall complete and file with the department, through the Nationwide Multistate Licensing System and Registry, one verified application prescribed by the commissioner by rule. At a minimum, the application shall include:
8 Money Transmitters Added to the Nationwide Multistate Licensing System and Registry. Amend RSA 399-G:4, III(f) to read as follows:
(f) The department may rely on criminal records checks reported through [a national licensing facility] the Nationwide Multistate Licensing System and Registry in lieu of subparagraphs (b) and (c).
9 Money Transmitters Added to the Nationwide Multistate Licensing System and Registry. Amend RSA 399-G:4, VII to read as follows:
VII. [The commissioner may license or register individuals or firms by means of or through the facilities of a national organization which facilitates registration and licensing on a nationwide basis.] (a) In order to carry out the requirement that money transmitters be licensed through the Nationwide Multistate Licensing System and Registry, the commissioner shall participate in the Nationwide Multistate Licensing System and Registry. For this purpose the commissioner shall establish by rule the procedures, requirements and standards as necessary, including:
(1) Background checks for:
(A) Criminal history through fingerprint or other databases;
(B) Civil or administrative records;
(C) Credit history; and
(D) Any other information as deemed necessary by the Nationwide Multistate Licensing System and Registry.
(2) The payment of fees to apply for or renew a license through the Nationwide Multistate Licensing System and Registry.
(3) The setting or resetting as necessary of renewal or reporting dates.
(4) Requirements for amending or surrendering a license or any other such activities as the commissioner deems necessary for participation in the Nationwide Multistate Licensing System and Registry.
(b) The commissioner shall establish a process whereby money transmitters may challenge information entered into the Nationwide Multistate Licensing System and Registry by the commissioner.
10 Reporting and Filing Requirements. Amend RSA 399-G:10, IV-VII to read as follows:
IV. Each licensee shall submit to the Nationwide Multistate Licensing System and Registry reports of condition, which shall be in such form and shall contain such information as the Nationwide Multistate Licensing System and Registry may require.
V. Any money transmitter failing to file either the annual report, [or] the financial statement, or report of condition required by this section within the time prescribed may be required to pay to the banking department a penalty of $25 for each calendar day the annual report or financial statement is overdue up to a maximum penalty of $2,500 per report or statement.
[V.] VI. In addition to the annual report, [and] financial statement, or report of condition, the banking department may require such additional regular or special reports as it may deem necessary for the proper supervision of licensees under this chapter.
[VI.] VII. A document is filed when it is received by the commissioner. Electronic filings, when received by the commissioner, are:
(a) Deemed filed;
(b) Prima facie evidence that a filing has been duly authorized and made by the signatory on the application or document;
(c) Admissible in any civil or administrative proceeding under this chapter; and
(d) Admissible in evidence in accordance with the rules of a superior court in any action brought by the attorney general under this chapter.
[VII.] VIII. Examination fees and expenses, fines, penalties, and other moneys owed the department shall be paid within 14 days of receipt of notice by the licensee or at such later time as the commissioner prescribes by rule.
11 Mistatements on Annual Reports. Amend RSA 397-A:17, V(e) to read as follows:
(e) Has made a false or misleading statement to the commissioner or has materially misstated information in any reports to the commissioner;
12 Effective Date. This act shall take effect 60 days after its passage.
17-0522
1/6/17
HB 457-FN- FISCAL NOTE
as introduced
AN ACT relative to consumer credit division entities.
FISCAL IMPACT:
The Legislative Budget Assistant has determined that this legislation has a total fiscal impact of less than $10,000 in each of the fiscal years 2018 through 2021.
AGENCIES CONTACTED:
Banking Department