January 25, 2024



As many parts of the country dig themselves out of the snow, January has also seen a flurry of activity in state legislatures as their 2024 sessions reconvene and new legislation is introduced. In this edition of Licensing Link, we address some of the significant legislation that has been introduced to this point in 2024 that could impact financial licensing laws across the spectrum of asset classes.


California Moving to License All Commercial Loan Brokers?

California has been at the forefront of implementing laws and regulations governing small businesses and commercial financing. Notably, the state has introduced measures such as cost-of-credit disclosures for various commercial financing, expanding its prohibition on unfair, deceptive, or abusive acts or practices, and imposing fee limitations.  The recently proposed Senate Bill 869 aims to establish a new licensing requirement for individuals engaged in "commercial brokerage" services related to commercial loans, with defined activities and a mandated fiduciary duty, potentially impacting the dynamics of commercial financing in the state.
Read more>>


Licensing and Regulation on the Way for BNPL Providers in New York?

New York Governor Kathy Hochul has unveiled plans for a comprehensive consumer protection and affordability agenda, focusing on the "Buy Now, Pay Later" (BNPL) financing industry. The proposed legislation aims to mandate licensing for BNPL providers and empower the New York Department of Financial Services to establish regulations ensuring compliance. Governor Hochul emphasized the need for industry safeguards, including disclosure requirements, dispute resolution standards, credit reporting standards, limits on late fees, consumer data privacy, and measures against dark patterns, debt accumulation, and overextension. The evolving regulations could significantly impact BNPL providers in the state. Read More>>

New York
United States

More “True Lender” Laws Coming?

Recent developments in the District of Columbia, Maryland, and Washington reveal a continued trend of U.S. jurisdictions introducing legislation to establish "true lender" laws. Similar to laws enacted in other states, these proposals define certain persons as the "lender" of a loan if they hold the predominant economic interest in a loan originated through a bank partnership or meet specific criteria under a "totality of the circumstances" analysis. These proposals could introduce new licensing and compliance obligations on bank partnership platforms. In addition, the District of Columbia proposal would, if enacted, cause the District of Columbia to “opt out” of the interest rate exportation authority provided to state-chartered banks by the federal Depository Institutions Deregulation and Monetary Control Act. Read more>>


Licensing Link and Mayer Brown’s Licensing Team

Licensing Link is a periodic publication that will keep you informed on hot topics and new developments in state licensing laws, and provide practice tips and primers on important issues related to state licensing across the spectrum of asset classes and financial services activities. We hope you’ll join us for future editions and don’t forget to subscribe at the button link below.

For more information about the licensing topics discussed, please contact the editors, Krista Cooley, Partner, Washington DC at and +1 202 263 3315 and Frank Doorley, Partner, Washington DC at and +1 202 263 3409.

For more than 20 years, our Financial Services Regulatory and Enforcement practice’s licensing team has helped clients engaged in lending and other consumer credit activities navigate every aspect of state licensing. We routinely undertake nationwide licensing and renewal efforts involving all manner of professional licenses for consumer credit-related activities, including mortgage lending, brokering or servicing, consumer lending and brokering, commercial mortgage and non-real estate-secured commercial or business activities, collections, money services or money transmitter businesses, sales finance activities, and real estate broker activities. We not only help companies evaluate the need for and obtain state licenses but also help steer them through license renewals, examinations and required reporting, changes of control, and license surrenders and provide other services that help companies remain in good standing with state licensing regulators.

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