Lender Licensing Requirements

"No person shall engage within this state in the business of: (1) Making or funding loans or acting as a lender or small loan lender; (2) Brokering loans or acting as a loan broker; (3) Providing currency transmission for a fee or other consideration; (4) Cashing checks for a fee or other consideration, which includes any premium charged for the sale of goods in excess of the cash price of the goods; (5) Providing debt-management services; (6) Performing the duties of a mortgage-loan originator; (7) Servicing a loan, directly or indirectly, as a third-party loan servicer without first obtaining a license or registration from the director or the director’s designee. The licensing requirement for any person providing debt-management plans shall apply to all persons, without regard for state of incorporation or a physical presence in this state, who initiate or service debt-management plans for residents of this state. Special exemptions from licensing for each activity are contained in other chapters in this title. (R.I. Gen. Laws § 19-14-2(a)).

No lender or loan-broker licensee shall permit an employee to act as a mortgage loan originator without first verifying that the originator is licensed under this chapter. No individual may act as a mortgage-loan originator without being licensed, or act as a mortgage-loan originator for more than one person. The license of a mortgage-loan originator is not effective during any period when the mortgage-loan originator is not associated with a lender or loan-broker licensee. (R.I. Gen. Laws § 19-14-2(b)).

If a person other than a licensee engages in activity for which licensure is required by this title with or on behalf of a resident in violation of this chapter, the department may assess a civil penalty against the person in an amount not to exceed five thousand dollars ($5,000) for each day of violation and/or may order that the person cease and desist from all activities requiring licensure. (R.I. Gen. Laws § 19-14-26)"