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Licensing

Licensing Challenges for Non-Traditional Mortgage Products

The New Frontier in Mortgage Innovation Shared equity agreements, reverse mortgages, rent-to-own models, and novel securitization structures are reshaping the mortgage landscape. These products promise flexibility for consumers and new growth opportunities for fintechs and non-bank lenders - but they also test the limits of existing state licensing frameworks. In the past five years, regulators [...]

Cornerstone Editorial
Newsletter

August 2025

NEBRASKA COMBINES INSTALLMENT LOAN & SALES ACTS INTO SINGLE STATUTE Effective October 1, 2025, Nebraska will combine the Installment Loan Act and the Installment Sales Act into a single statute: the Nebraska Installment Loan and Sales Act. Importantly, the state is not merging license types - installment loan and installment sales licenses will remain separate, with no [...]

Cornerstone Editorial
D
Debt Collection & Buying

Compliance Corner: What Regulators May Expect You To Know About the AI Tools You're Using in Your Collection Agency

AI keeps reshaping financial services, and collection agencies are adding AI tools to streamline operations, strengthen compliance, and improve consumer engagement. With that innovation comes responsibility and a growing need for clarity on legal, ethical, and regulatory questions. Emerging technology like AI is top of mind for state financial services regulators, who increasingly ask how licensees use these tools.

Cornerstone Editorial
Debt Collection & Buying

Beyond the Collection License: When Debt Buyers Need Lender or Servicer Licenses

Why a Collection License Isn't Always Enough For decades, debt collection firms have assumed that once you have a collection agency license, you're cleared to operate. But the reality is more complicated. Regulators are increasingly looking at what kinds of debt you collect and how you collect it. Depending on your portfolio and practices, you [...]

Cornerstone Editorial
Debt Collection & Buying

License-Ready from Day One: A Practical Guide for Debt Collection Startups

Launching a debt collection venture - whether a tech-driven fintech or a traditional call-center outfit - means entering one of the most highly regulated pockets of U.S. financial services. States watch collectors closely because the work touches consumers at a vulnerable moment. Before the first call or email goes out, a new entrant must lock down licenses, bonds, corporate [...]

Cornerstone Editorial
Newsletter

July 2025

NYC DEBT COLLECTION RULE DELAYED AGAIN The New York City Department of Consumer and Worker Protection (DCWP) has postponed the implementation of its amended debt collection rule, originally slated to take effect October 1, 2025. This marks the third delay, following strong advocacy from ACA International and other industry stakeholders, who raised concerns about misalignment [...]

Cornerstone Editorial
Lending

7 Tips for Launching a Successful Lending Business

Thinking of starting a lending business? The lending industry offers vast opportunities for entrepreneurs willing to navigate its complexities. Whether you're interested in consumer loans, business financing, or real estate funding, understanding the landscape is crucial. Here are 7 essential tips to help you successfully start a lending business: 1. Spot the Demand Early Today's [...]

Cornerstone Editorial
Licensing

Beyond Licensing: What States Expect from Non-Bank Lenders Post-Approval

Obtaining a consumer lending license is a major milestone for non-bank lenders - but it's only the beginning. Once licensed, lenders must meet a host of ongoing state-level obligations that require operational discipline and proactive planning. These obligations are not just bureaucratic checkboxes; they are essential to staying compliant, avoiding penalties, and building long-term credibility with regulators. [...]

Cornerstone Editorial
Licensing

Licensing Readiness for Lending Startups: Building Infrastructure Before Market Entry

For venture-backed and tech-enabled lending startups, licensing for lending startups isn't a box to check later - it's the foundation for everything that follows. Whether you're launching a BNPL product, installment loans, or a new personal lending platform, the ability to operate legally across the U.S. hinges on a deliberate, phased approach to licensing for lending startups [...]

Cornerstone Editorial
Licensing

When Is a State Consumer Lending License Required?

Understanding Licensing Triggers Across Products and Jurisdictions Navigating the U.S. regulatory landscape as a non-bank lender isn't simple. State licensing requirements vary widely and are often triggered by factors that go beyond just issuing a loan. Whether you're offering installment credit, point-of-sale financing, or operating a lending marketplace, knowing when and why you need to [...]

Cornerstone Editorial
Licensing

The New Rules of Earned Wage Access: Licensing in 2025

Cornerstone unveils a new look and website as the company celebrates its 25-year anniversary

Cornerstone Editorial
Debt Collection & Buying

Debt Collection Agency License: Key Steps to Licensing Success

What Is a Collection Agency License? A collection agency license, often referred to as a Debt Collection License, is a state-issued permit that authorizes businesses to collect debts - whether on behalf of others or through purchased debt portfolios - from consumers within that state. Unlike federal regulations like the Fair Debt Collection Practices Act (FDCPA), which sets nationwide [...]

Cornerstone Editorial
Newsletter

June 2025

COLORADO UPDATES MONEY TRANSMITTER LICENSING Colorado has adopted the Model Money Transmission Modernization Act (MTMA), set to take effect August 6, 2025, replacing the state's existing money transmitter licensing framework. The updated law introduces a higher net worth requirement - now $100,000 based on transaction volume - and reduces the minimum surety bond from $1 million to $250,000. It [...]

Cornerstone Editorial
Licensing

Money Transmitter Licensing Guide for Fintech Startups

For early-stage fintech startups, navigating the world of financial regulation can overwhelm. One critical hurdle many face early is obtaining a Money Transmitter License (MTL). Whether you're building a payment app, a crypto platform, or a remittance service, understanding MTL requirements is essential for compliance, credibility, and long-term growth. This guide walks you through what [...]

Cornerstone Editorial
Press Releases

Cornerstone Licensing Services Unveils New Interactive Mortgage State Licensing Map Empowering Lenders and Brokers Nationwide

Free, real-time state-by-state map tool delivers state-specific licensing and bond requirements in a single click - fully integrated with our Licensing Portal.

Cornerstone Editorial
Newsletter

May 2025

INDUSTRY NEWS STUDENT LOAN SERVICING RESTARTED - VERIFY YOUR LICENSES With federal student loan collections back in effect since May 5, wage garnishments and other enforcement measures are once again in force. A standard debt-collection license may no longer suffice - many states now mandate a dedicated student-loan servicer or collector permit. Exemptions are limited, and debt buyers must [...]

Cornerstone Editorial
Licensing

Licensing Rules for Non-Traditional Mortgage Products

The non-traditional mortgage market is growing fast, driven by borrower demand, market gaps, and investor interest. Products range from home equity lines of credit (HELOCs) to hard money loans, and they offer flexibility and opportunity. But for lenders, servicers, and purchasers, especially non-banks, the regulatory obligations can be nuanced and easy to misunderstand.

Cornerstone Editorial
Licensing

Defaulted Mortgage Loans and Licensing Risk

As residential mortgage loans move from performing to non-performing status, the rules change in ways mortgage professionals cannot ignore. Servicing a current loan and managing a delinquent one are treated very differently under federal and state law, especially on licensing. This article breaks down the licensing triggers that arise when loans default.

Cornerstone Editorial
Insurance

Protect Your Business with the Right Insurance Solutions

In the debt collection and debt buying industry, insurance isn't optional - it's critical. From frivolous lawsuits to sophisticated cyber-attacks, agencies face constant risks in today's litigious and digital environment. The right coverage, especially Errors & Omissions (E&O) - also known as Professional Liability - and Cyber Liability insurance, can mean the difference between a minor setback and a [...]

Cornerstone Editorial
Licensing

Mortgage Servicer Licenses and Beyond: What Secondary Market Participants Must Know

Mortgage industry executives and risk officers must work through a patchwork of state licensing rules in the secondary market for mortgage loans. Unlike loan originators, secondary market participants such as mortgage note buyers, loan servicers, and investors often face less obvious licensing triggers. Recent regulatory developments point to expanded oversight of post-origination activity.

Cornerstone Editorial
Debt Collection & Buying

What is Debt Collection Licensing?

The Basic average American consumer is about $90,460 in debt. This is bad news on an individual level, but it's just as bad for the lenders, especially if the debtor becomes delinquent on paying the loan back. After all, if you lent that money out or provided a service or sold a commodity - it's [...]

Cornerstone Editorial
Newsletter

April 2025

UTAH UT AI DISCLOSURE LAW ENACTED Effective May 7, 2025, Utah's new law requires businesses and licensed professionals using generative AI in consumer interactions to provide clear disclosures. In regulated industries - including financial services, lending, and debt collection - licensed individuals must proactively disclose AI use at the start of any high-risk interaction, such as those involving financial [...]

Cornerstone Editorial
Licensing

Are You Licensed to Collect Federal Student Loans? What to Know Before May 5

The U.S. Department of Education has announced that federal student loan collections will resume on May 5, ending a long pandemic-era pause. This includes the reinstatement of wage garnishments and other collection measures for defaulted borrowers. For professionals in the debt collection industry, this development carries important implications. Any organization involved in the recovery of [...]

Cornerstone Editorial
Compliance

Passive Income or Active Risk? Rethinking the Role of Passive Debt Buyers in a High-Scrutiny Market

The Myth of the Hands-Off Buyer In the debt buying industry, a common assumption has been that "passive" debt buyers - those who purchase portfolios but outsource all collections - can take a hands-off approach with minimal regulatory risk. This myth is increasingly dangerous in today's high-scrutiny market. Even so-called passive debt buyers face significant [...]

Cornerstone Editorial