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Compliance

Municipal Oversight in Debt Collection: City Level Licensing

Introduction: Local Rules with National Impact When most debt collectors think about licensing, they look to state-level requirements. But some of the country's most active consumer protection efforts are happening at the city level - and if you're collecting from residents in places like New York City, Chicago, Buffalo, or Yonkers, you're expected to follow local rules [...]

Cornerstone Editorial
Compliance

State Licensing Challenges Facing Debt Collection Agencies in 2025

Debt collection agencies face a dynamic regulatory landscape in 2025. Several states have recently overhauled licensing requirements or introduced new rules, forcing agencies to adapt quickly. Compliance teams must track changing laws, meet new application deadlines, and juggle multiple state licenses - all while keeping an eye on exemptions and opportunities to streamline the process. [...]

Cornerstone Editorial
Lending

Lending Business Models: Licensing & Startup Guide

Choosing the right lending business model is essential - whether you're launching a new lending business or expanding into alternative finance options. The lending industry offers a wide range of models, from traditional bank loans to newer channels like peer-to-peer (P2P) lending and micro-lending. Each model serves different borrower profiles, involves distinct licensing requirements, and follows its [...]

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Newsletter

March 2025

INDUSTRY NEWS OFAC EXTENDS RECORDKEEPING REQUIREMENTS TO 10 YEARS Effective March 12, 2025, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) will require organizations to retain records of OFAC-related transactions for 10 years, doubling the previous 5-year requirement. The extended recordkeeping period applies to all transactions subject to OFAC regulations, including [...]

Cornerstone Editorial
Lending

Key Regulatory Updates for Lenders in 2025

2025 brings significant regulatory changes affecting both consumer and commercial lenders. New laws and rules - from enhanced consumer protections to stricter capital standards - are in motion, requiring lenders to track new legislation, comply with key deadlines, and adjust to updated fair lending, capital, and reporting requirements. Recent shifts at the Consumer Financial Protection Bureau (CFPB) have introduced [...]

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Compliance

What Money Transmitters Need to Know About FinCEN's New AML Rules

The world of money transmission has always been heavily regulated, but new anti-money laundering (AML) requirements coming from the Financial Crimes Enforcement Network (FinCEN) are pushing money service businesses (MSBs) to raise their game. In 2025, FinCEN is introducing significant updates that will reshape how MSBs manage risk, monitor transactions, and prevent financial crimes. If [...]

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Compliance

How Regulators Are Addressing Digital Payments in the Crypto Era

As cryptocurrencies continue to redefine how we transfer value, regulators at the federal and state levels have been working hard to keep up. From traditional money transmitters to crypto exchanges, businesses in the space are facing a growing set of rules designed to ensure transparency, prevent money laundering, and protect consumers. The Federal Picture At [...]

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Newsletter

Newsletter: February 2025

INDUSTRY NEWS CFPB FEBRUARY SNAPSHOT If you haven't been keeping up with the constant stream of Consumer Financial Protection Bureau (CFPB) updates, here's a quick overview of the key developments this month. The CFPB saw major upheaval, with Director Rohit Chopra dismissed and Treasury Secretary Scott Bessent taking control, leading to an immediate freeze on [...]

Cornerstone Editorial
Lending

Fair Lending: Increased Scrutiny on Algorithmic Decision-Making

As lending institutions increasingly embrace artificial intelligence (AI) and alternative credit scoring models, regulators are focusing on ensuring these tools uphold fair lending principles. These advanced technologies promise more precise risk assessments and expanded access to credit but also bring challenges related to transparency, bias, and fairness. With heightened scrutiny in 2025, lenders must adapt [...]

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Licensing

Avoiding the Pitfalls of Losing Good Standing Status: A Guide for Businesses

Maintaining good standing status is essential for any LLC or corporation aiming to operate effectively and safeguard its legal and financial health. Good standing signifies that an entity has met its legal and regulatory obligations, including filing necessary documentation, paying applicable fees, and adhering to state-specific regulations. Losing this status can have far-reaching consequences, from [...]

Cornerstone Editorial
Licensing

State-by-State Licensing Challenges in Money Transmission

In money transmission, one of the most persistent challenges is meeting each state's licensing requirements. Money transmission is governed mostly at the state level, which creates a patchwork of rules, standards, and processes that vary widely from one jurisdiction to another. Working through these diverse frameworks is essential for transmitters that want to operate legally and efficiently across many states.

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Compliance

Navigating CFPB's Proposed Rulemaking: Key Insights for Data Brokers

The Consumer Financial Protection Bureau (CFPB) has issued a Notice of Proposed Rulemaking (NPRM) that could reshape the landscape for data brokers and consumer reporting. The changes rest on expanded definitions and higher compliance requirements, signaling a new era of accountability in handling consumer data. Here are the key insights businesses need to work through them.

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Compliance

Compliance Corner: No Place Like Home? Fine-Tuning Your Remote Work Strategies

Unbelievably it has been almost five years since the world undertook one of the largest work-from-home experiments ever. Ready or not, in the days and weeks following the World Health Organization's March 2020 declaration that COVID-19 was a pandemic, employers throughout the world grappled with how to securely and productively have their workforces work remotely. [...]

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C
Compliance

Preparing for the CFPB's 'Small-Dollar' Lending Rule

The regulatory landscape for payday lenders, auto title lenders, and high-cost installment lenders is facing a pivotal moment. The Consumer Financial Protection Bureau (CFPB)'s "Small-Dollar" Rule - designed to protect consumers from harmful lending practices - is now firmly on track to take effect. Recent court rulings in the litigation between the Community Financial Services Association (CFSA) and the [...]

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Compliance

Medical Debt: A 2024 Year-End Legislative Overview

This year, the landscape of medical debt collection is undergoing major transformation. Significant new federal and state legislation is redefining how collectors can pursue medical debts, driven by increasing concerns about consumer protections and the broader financial impacts of medical debt. For debt collection professionals, understanding these changes and adapting processes accordingly is crucial to [...]

Cornerstone Editorial
Lending

Enhancing Mortgage Compliance and Risk Management with AI and Automation

The mortgage lending industry faces complex compliance requirements and heightened scrutiny. Artificial intelligence (AI) and automation are becoming powerful tools. AI-driven solutions can reduce operational costs, improve accuracy, and streamline labor-intensive processes. This article explains how AI and automation are reshaping compliance and risk management in mortgage lending, with use cases in loan origination, underwriting, and fraud prevention.

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Compliance

Key Compliance Priorities for Mortgage Servicers in 2024

The mortgage servicing industry is constantly evolving, and the regulatory landscape is no exception. Staying compliant with the latest regulatory changes is both challenging and critical. In 2024, an increase in consumer protection focus, data privacy requirements, and environmental, social, and governance (ESG) initiatives mean that mortgage servicers must stay nimble and proactive. This article [...]

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Insurance

The Growing Threat of Cyber Attacks in the Financial Services Industry

As digital technology advances, the financial services industry faces growing cyber threats. Banks, insurance firms, and fintech companies handle huge amounts of sensitive data, which makes them prime targets. Understanding these risks and acting on them is essential to protect both customers and institutions.

Cornerstone Editorial
Licensing

Adapting to New Licensing Requirements for Digital-Only Financial Services

Digital-only financial services, such as fintechs, online lenders, and neobanks, have disrupted traditional finance. They use technology to offer banking, lending, and payment services online, with more convenience for customers. As these firms expand across jurisdictions, meeting licensing requirements gets more complex.

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Licensing

The Intersection of Licensing and Cybersecurity

As fintech companies grow, licensing and cybersecurity compliance collide. Regulators now expect firms to prove strong data protection before they will grant or renew a license.

Cornerstone Editorial
Licensing

New Money Transmitter Licensing Requirements Under the MTMA

Recent updates under the Uniform Money Transmission Modernization Act (MTMA) mean several states have significantly revised their licensing requirements. If you operate in financial services or virtual currency, note that money transmitter licensing may now be required where it was not before. Many businesses will need to reassess their compliance strategies to meet the new standards.

Cornerstone Editorial
Compliance

Significant Amendments to New York City Debt Collection Rule

On August 12, 2024, the New York City Department of Consumer and Worker Protection (DCWP) unveiled significant amendments to the city's Debt Collection Rule. These amendments take effect on December 1, 2024, and represent a substantial shift in the regulatory landscape for debt collectors. Here is what businesses need to understand and prepare for.

Cornerstone Editorial
Compliance

Compliance Corner: An Apple a Day Isn't Keeping Changes to Laws Affecting Medical Debt Away

While the August 12, 2024 deadline for comments on the proposed rules published by the Consumer Financial Protection Bureau ("CFPB") is quickly approaching, the landscape for vendors of all sorts working on the revenue cycle side of healthcare continues to change. A key priority in Washington, D.C. has been to address the issue of roughly [...]

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Compliance

Strategic Responses to Brokered Loan Modifications in California

California's commercial and consumer lending landscape faces a significant challenge after a 9th Circuit Court of Appeals decision. The ruling strips brokered loans of their exemption from usury limits once a loan is extended. But there is a possible fix: California Senate Bill 1146 would amend the current statute to restore these exemptions.

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