Skip Maine state header navigation

Agencies | Online Services | Help

Skip First Level Navigation | Skip All Navigation

 

Supervised Lender FAQ

 

When are license renewals mailed from this office?

The Bureau of Consumer Credit Protection sends out license renewal forms prior to August 1. These forms are due back on or before September 30.

When do I need to submit financials?

At Renewal.

Why do I need a License?

The Bureau of Consumer Credit Protection uses licenses to keep track of which companies make loans to Maine consumers, so that the agency can more easily regulate lender activity. Licenses also provide an extra level of accountability on the part of our licensees, because our office can quickly and easily track lending companies' past and present activity.

How long is the licensing period?

The Bureau of Consumer Credit Protection grants licenses for a two-year period. Issued licenses expire on September 30 of the second year. Upon expiration, licensees can apply for a license renewal, which lasts another two years.

What liquid asset qualifications are there to become a licensee?

The company must have liquid net assets of at least $25,000 for each licensed location, and must maintain at least this amount available for business use throughout the two year licensing period.

What must accompany an application?

Several items must accompany the application for a supervised lender:

  • $50,000 surety bond (A blank bond form is provided in the application package)
  • List of company officers, including all positions held in other lending or loan brokerage companies.
  • Resumes of the company's top three officers
  • Sample loan forms, including but not limited to:
    • Credit application
    • "Choice of title attorney" form
    • Promissory note
    • Credit denial form
    • Financial statement

What is the surety bond used for?

The bond pays for any un-reimbursed expenses or restitution incurred as the result of investigations into consumer complaints against the company or other claims against the company.

Can my license be suspended or revoked? If so, under what circumstances?

Yes, the Bureau of Consumer Credit Protection has the authority to both suspend and revoke your license. Three sets of circumstances could warrant suspension or revocation of your license:

  • If your company violates any section of Title 9-A; Part 3, entitled "Consumer Loans: Supervised Lenders."
  • If new information emerges that, at the time your company obtained its license, was unavailable and would have resulted in the administrator's denial of your license application.
  • Temporary license suspensions can be imposed at the administrator's discretion, in those instances in which temporary suspension would protect the interests of Maine consumers.

What type of annual reporting is required of my supervised lending company?

Supervised lenders report annually to the state of Maine by submitting the MCCC-1 (pronounced "Mick-1") form. This form lists the number and dollar amount of consumer credit transactions with Maine consumers for the previous calendar year. It must also include updated contact information if the company has changed locations, and information on the officers of the company. The Bureau of Consumer Credit Protection keeps all credit volume information confidential and only reports the information in composite form. The MCCC-1 form is separate from the biennial license renewal form. The Bureau of Consumer Credit Protection sends out MCCC-1 forms in mid-December and the forms are due back by January 31 of the following year.

Do I still have to file a MCCC-1 at the end of the year if I have terminated my business during the year?

Yes, you have to report any business transactions completed during the course of the entire year.

Can I appeal a denied application? If so, how?

Yes, you can appeal a denied application through a hearing process. The company must request a hearing within fifteen days of written notification that the application was denied

Your company may also request a hearing if the administrator has not taken action on the application after sixty days.

Is Maine a "brick & mortar" state?

No, supervised lenders from other states can operate in Maine without maintaining a physical office location in the state, as long as the company holds a license issued by the Bureau of Consumer Credit Protection.

Can I broker and lend (1st & 2nd mortgages) with my lender license?

Yes, you may both broker and lend, first lien loans, junior lien loans and even any type of unsecured consumer loans under a Maine supervised lender license. However, when acting as a broker, lenders must include the Broker's disclosure statement in the consumer's contract.

What is needed to change license types from a Broker to a lender?

To switch from a broker's license to a lender's license, your company must file a separate lender's application. However, because the applicant already filed for one license (the Broker's license), the application process generally moves more quickly and easily than a normal lender's application would.

What is the Gramm-Leach-Bliley ("GLB") Act? Does it affect me as a supervised lender?

The GLB act sets privacy standards for the collection and distribution of consumer information by any company that collects personal information from consumers. The GLB Act requires companies to give consumers a privacy notice, and to inform them how their personal information is collected, and also whether the company plans to share this information with other companies. Companies must also give consumers the ability to "opt-out", which means that other companies will not receive the consumers information.

As a supervised lender, the G.L.B. affects you, because your company collects personal information from consumers during the lending process.

 

Do I have to re-license in the case of a change in the company's name or ownership?

Yes, a supervised lending license only applies to the specific name on the license; any changes to the company's name must be reflected by a new license. Companies may not advertise loans under an altered name without first acquiring a license for the alternate name.

In the case of a change in ownership, if more than 50 percent of the company changes hands, the company's license will be reviewed by the Bureau of Consumer Credit Protection . However, the Bureau of Consumer Credit Protection will look more closely at a change in ownership under certain circumstances. For example, when the new owners are not part of the previous corporate family or if the new owners replace the company's management team, the Bureau of Consumer Credit Protection will more closely inspect the validity of the company's original license. The form for a 50% or more change in ownership can be found HERE.

How many loans can I make without being licensed?

Supervised Lenders may issue up to five (5) regular loans or two (2) section 32 loans ("high-rate, high-fee" loans subject to HOEPA) per calendar year. However, unlicensed companies cannot, under any circumstances, broker loans. An unlicensed company must close all loans under its own name.Title 9-A sec 1-301(17).

Do commercial lenders need to be licensed by the Bureau of Consumer Credit Protection?

No, a commercial lender's license does not exist; contract law regulates commercial lending companies.

I am a supervised lender. I have both an SLM and SLD license. I don't have two separate licenses do I? Which one is my real license?

No you do not have two separate licenses. The SLM is your actual license, whereas Bureau of Consumer Credit Protection uses the SLD certificate when supervised lenders submit their MCCC-1 forms annually.

If I make a loan to someone in Maine do I have to follow Maine state law or the laws in my own state?

Your company must follow the laws of the state of the consumer's principal residence in all cases. Therefore, if your supervised lending company is located in another state, and wishes to make a loan to a Maine resident, the company must abide by Maine state law. State law also takes precedence if a licensed lending company physically located in Maine wishes to make a loan to an out of state consumer.

[Back to Top]