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WBK Industry News - State Regulatory Developments

Delaware Amends Criminal Background Check Requirements for Mortgage Loan Broker and Licensed Lender Licenses

Delaware recently passed a bill, House Bill 199 (HB 199), which, among other things, amends the criminal background check requirements for the Delaware mortgage loan broker and licensed lender licenses.  HB 199 became effective June 27, 2019.

Specifically, HB 199 authorizes the Delaware State Bank Commissioner (Commissioner) to require applicants, their spouses, a principal of, individual who is a person in control of, or proposed responsible individual of the applicant, or any other individual associated with the applicant and the proposed licensed activities, for financial services licenses for, among others, mortgage loan brokers and licensed lenders to provide fingerprints for criminal background checks.  The bill also establishes a sunset provision of July 1, 2019, for the section of the Delaware Federal Employees Civil Relief Act concerning the maximum rate of interest on debts incurred by federal workers that are furloughed or not getting paid as a result of a federal government shutdown.