Senate Bill 2124 Summary

• Prohibits net branch and net branching arrangements for money brokers, where a branch manager has the appearance of ownership through profit sharing, facility control, or other contractual relationships.

• Establishes minimum net worth requirement of $25,000 for all money broker licensees and allows commissioner to revoke licenses if net worth falls below this threshold and licensee fails to submit an approved remediation plan within 20 business days.

• Requires licensees to maintain a $25,000 surety bond, report changes of name or address within 20 business days, submit call reports to the nationwide mortgage licensing system and registry, and maintain records for six years with notice to the department upon ceasing operations.

• Expands prohibited acts for money brokers to include 16 specific violations such as false statements, fraud, deceptive practices, unlicensed operation, failure to make required disclosures, and false reporting to governmental agencies or the nationwide mortgage licensing system.

• Grants the commissioner broad authority to investigate violations, examine licensees, access financial records and credit reports, share supervisory information with other state and federal regulatory agencies while maintaining confidentiality protections under federal law.