HB 5490 Summary: Consumer Credit Licenses

• Expands licensing scope: Adds student loan servicers and mortgage lead generators to entities subject to banking law oversight and licensing requirements under the system (NMLS).

• Strengthens investigative authority: Grants the commissioner expanded powers to conduct investigations and examinations, including accessing criminal history, credit reports, and other records; controlling access to records; and using third-party professionals and analytical systems.

• Modernizes licensing processes: Transitions multiple license types (mortgage lenders, brokers, loan originators, money transmitters, check cashers, small loan lenders, debt adjusters, and debt negotiators) to electronic filing through the system with uniform deadlines (December 31st renewal dates) and streamlined procedures.

• Enhances supervisory requirements: Mandates qualified individuals at main offices and branch managers at branch offices with supervisory authority and relevant experience for most licensed entities; allows waivers in limited circumstances.

• Establishes removal authority: Grants the commissioner power to order removal of individuals from office and employment when they violate applicable law or lack fitness to operate, with notice and hearing rights.