Skip to Page Content
Delaware.gov  |  Text OnlyGovernor | General Assembly | Courts | Elected Officials | State Agencies
 Photo: Featured Delaware Photo
 
 
 Phone Numbers Mobile Help Size Print Email

Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsOctober 2014

Table of Contents Previous Next

Authenticated PDF Version

(5 Del.C. §§121(b), 2112, 2210(e), and 2906(e))
5 DE Admin.Code 2101, 2102, 2104, 2201, 2202, 2701, 2901 and 2902
A copy of the proposed amended regulations is being published in the October 1, 2014 edition of the Delaware Register of Regulations. A copy is also on file in the Office of the State Bank Commissioner, 555 E. Loockerman Street, Suite 210, Dover, DE 19901 and is available for inspection during regular office hours. Copies are available upon request.
5 Del.C. §§2102(b) and 2112
1.1 5 Del.C. Ch. 21 applies only to extensions of credit secured by one to four family residential owner-occupied property located in this State intended for personal, family, or household purposes.
1.2 5 Del.C. Ch. 21 does not apply to:
2.1 All licensees shall comply with 5 Del.C. Ch. 21, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
3.1 Each licensed office open to the public shall prominently display its license issued under 5 Del.C. Ch. 21 in clear view of all customers.
5.1 Each licensee shall insure that every person who it employs, or is affiliated with it, as a mortgage loan originator, as defined by 5 Del.C. Ch. 24, to provide mortgage loan originator services has complied with all the requirements of that chapter and the regulations issued thereunder.
5.4 The licensee’s solicitations, advertisements, business cards, and websites that list the name of any mortgage loan originator who provides residential mortgage loan origination services for the licensee shall also contain that originator’s unique identifier issued by the Nationwide Mortgage Licensing System and Registry.
5.5 A licensee may use its surety bond under 5 Del.C. Ch. 21 to cover mortgage loan originators who are its employees or exclusive agents if the bond conforms to all requirements of 5 Del.C. §2415 and §12.0 of Regulation 2401.
5.54.1 A licensee’s irrevocable letter of credit may not be used to cover mortgage loan originators.
5.54.2 A licensee shall notify the Commissioner in writing of the names of the mortgage loan originators who are covered by its surety bond and of any change in such coverage for those originators.
6.4 When a licensee advertises with respect to its services under 5 Del.C. Ch. 21, the advertisement shall clearly and conspicuously may state that the licensee is licensed by the Delaware State Bank Commissioner to engage in business in this State and may specify the license number and expiration date of the license.
7.2 If the website allows the licensee to conduct any business governed by its license, the website shall properly secure the transmission of all confidential information entered on the website or otherwise exchanged between the licensee and any consumer or borrower.
10.1 The Nationwide Mortgage Licensing System and Registry, as the multi-state automated licensing system in which the Commissioner is participating pursuant to 5 Del.C. §2117, is authorized to act on behalf of the Commissioner to facilitate the application and licensing processes of 5 Del.C. Ch. 21, and in that capacity, the System may, with respect to that chapter:
10.2 Any person seeking an initial or renewal license to engage in a business that requires a license under 5 Del.C. Ch. 21 shall submit the appropriate application and fees to the Commissioner through the Nationwide Mortgage Licensing System and Registry.
11.1 The Commissioner may examine licensees pursuant to 5 Del.C. §§122 and 2110. The costs of such examinations are assessed in accordance with 5 Del.C. §127(a). A licensee shall remit payment not later than 30 days after the date of the examination invoice.
5 Del.C. §§2111(a) and 2112
1.6.4 for internet advertising, this record shall contain a copy of each screen on which the advertising appeared, an identification of the website and web address of each screen, and the dates on which the screen appeared at that web location; and the advertisement.
1.8 Additional Records. The office shall maintain any other records necessary to verify the licensee’s compliance with 5 Del.C. Ch. 21, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
5 Del.C. §2113
2.1 the licensee’s name, address, and telephone number;
2.3 the applicant’s name, address, and telephone number;
1.1 5 Del.C. Ch. 22 applies only to consumer credit transactions, including but not limited to, extensions of credit secured by one to four family residential, owner-occupied property located in this State intended for personal, family, or household purposes.
1.2 5 Del.C. Ch. 22 does not apply to:
1.2.3 lending that requires a license under 5 Del.C. Ch. 29, Financing the Sale of a Motor Vehicle.
2.1 All licensees shall comply with 5 Del.C. Ch. 22, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
3.2 Each licensed office open to the public that provides short-term consumer loans as defined in 5 Del.C. §2227 shall also prominently post the following statement in plain view in an area easily accessible to its customers at the entrance to the office: “A payday loan is not intended to meet long-term financial needs.”
4.2 A licensee shall take all necessary action to discharge, satisfy or release any other security interest for a loan under 5 Del.C. Ch. 22 within 30 days from the date that the loan is satisfied or fully performed.
5.1 Commissions or incentives of any kind for the placement of any type of insurance may not be paid to any licensee, any employee of a licensee, or any office of a licensee. Contracts prepared in advance of a borrower’s signature shall not automatically include credit life, health, disability or other insurance.
5.2 Credit Life and Health Insurance
5.21.1 A licensee may offer credit life and health insurance to qualified borrowers. Such insurance transactions shall conform to Title 18 of the Delaware Code and all applicable Insurance Commissioner Regulations.
5.21.2 Every licensee offering credit life and health insurance whose charges do not conform to those authorized by Title 18 of the Delaware Code shall maintain in each office a copy of a submission to the Insurance Commissioner requesting the non-conforming charges and the Insurance Commissioner's approval of those charges.
5.21.3 Credit life insurance refunds shall be calculated as of the date of death except as permitted by 18 Del.C. §3705(b)(4).
5.21.4 Credit health insurance payments received by a licensee shall be applied to the account for the period the payment actually covers regardless of the date of receipt. Additional interest charges shall not accrue if payment is received after the payment due date.
5.2.5 A licensee may offer, but not require, only such other insurance products as the Commissioner may, upon written approval, permit.
5.3 Other Insurance
5.3.1 Any licensee may require proof of insurance coverage for any loan secured by a motor vehicle, real estate, or other collateral. The borrower has the right to submit any existing policy(s) naming the licensee as beneficiary, provided such policy is acceptable to the licensee as to coverage, term and carrier. Upon notification to the licensee of cancellation of any policy, the licensee may place coverage to protect the licensee's interest. The borrower shall be informed of such placement and any amount expended shall be due and payable by the borrower before a loan may be satisfied. A licensee may, if requested by the borrower, place such insurance coverage as is necessary to protect the licensee's interest at the inception of the loan.
6.1 A licensee shall not sell, assign, or in any way transfer loan contracts to any person who is not licensed under 5 Del.C. Ch. 22 or licensed under a similar statute of another state, without the express written permission of the Commissioner.
Solely for the purposes of the loan limitation provisions contained in the last sentence of 5 Del.C. §2228(a), the term “loans” shall not be deemed to include loans secured by mortgages on real property located in this State (or secured by certificates of stock or other evidence of ownership interest in, or proprietary leases from corporations or partnerships formed for the purpose of cooperative ownership of real estate in this State) if such loans are originated by a licensee for resale and the licensee in fact sells, assigns or otherwise transfers the entire interest in the loan (except servicing, if servicing is retained) within 120 days following the date the loan is made. Upon written request, additional time may be granted at the discretion of the Commissioner.
8.1 Each licensee shall insure that every person who it employs, or is affiliated with it, as a mortgage loan originator, as defined by 5 Del.C. Ch. 24, to provide mortgage loan origination services has complied with all requirements of that Chapter and the regulations issued thereunder.
9.4 When a licensee advertises with respect to its services under 5 Del.C. Ch. 22, the advertisement shall clearly and conspicuously may state that the licensee is licensed by the Delaware State Bank Commissioner to engage in business in this State under and may specify the license number and expiration date of the license.
10.1 Every internet website that a licensee maintains shall meet the following requirements:
10.1.3 If the licensee provides short-term consumer loans as defined in 5 Del.C. §2227, the home page shall prominently display the following statement: “A payday loan is not intended to meet long-term financial needs.”
Each licensee shall maintain and follow a written comprehensive policy that describes the manner and timing of repossessing collateral after default. The licensee shall review and update the policy as needed to insure it is consistent with current law and that it reflects the licensee’s current practices. Such Repossession Policy shall comply in all respects with 6 Del.C. Article 9, Secured Transactions, Part 6, Default.
14.1 The Nationwide Mortgage Licensing System and Registry, as the multistate automated licensing system in which the Commissioner is participating pursuant to 5 Del.C. §2213A, is authorized to act on behalf of the Commissioner to facilitate the application and licensing processes of 5 Del.C. Ch. 22 as to persons that employ, or have affiliated, a mortgage loan originator as defined by 5 Del.C. Ch. 24, and in that capacity, the System may, with respect to those persons:
14.2 Any person seeking an initial or renewal license to engage in a business that requires a license under 5 Del.C. Ch 22 shall submit the appropriate application and fees to the Commissioner through the Nationwide Mortgage Licensing System and Registry when that person employs, or has affiliated, a mortgage loan originator as defined by 5 Del.C. Ch 24. All other persons shall submit applications for licenses under 5 Del.C. Ch 22 directly to the Commissioner.
15.1 The Commissioner may examine licensees pursuant to 5 Del.C. §§122 and 2210. The cost of such examinations are assessed in accordance with 5 Del.C. §127(a). A licensee shall remit payment not later than 30 days after the date of the examination invoice.
5 Del.C. §§2210(e) and 2211(a)
1.2.10 for short-term consumer loans as defined in 5 Del.C. §2227, evidence that the licensee has complied with all requirements of 5 Del.C. §§2235A and 2235B for each short-term consumer loan or rollover application received from the applicant, including:
1.3.2 for short-term consumer loans as defined in 5 Del.C. §2227, evidence that the licensee has complied with the requirements of 5 Del.C. §2235A and 2235B for each short-term consumer loan or rollover made to the borrower, including;
1.3.3 for title loans as defined in 5 Del.C. §2250, evidence that the licensee has complied with the requirements of 5 Del.C. Ch. 22 Subch. V including the requirements related to disclosures, rollovers, work-out agreements and rescissions;
1.3.19 evidence that the licensee has complied with the requirements of 10 U.S.C. §987, as amended, and the regulations thereunder, if applicable, relating to the requirements for payday loans, vehicle title loans and tax refund anticipation loans as each of those loans are defined in 32 CFR Part 232 when the loan is extended to a covered borrower as defined in Part 232;
1.3.20 if the licensee provides mortgage loan modification services as defined in 5 Del.C. §2245, evidence that the licensee has complied with the requirements of that section, including the limitations on compensation; and
1.4 Daily Transaction Record. The office shall maintain on a daily basis a record of all transactions involving either the receipt or disbursement of any amount whatsoever. Details of disbursements to or for the account of borrower’s shall be itemized.
1.5.3.6 any other documents sent or received by the licensee pursuant to the 6 Del.C. Article 9. Secured Transactions, Part 6. Default;
1.6 Credit Insurance Claims Record. The office shall maintain a credit insurance claims record containing the following information on all claims submitted by borrowers to the insurer:
1.7.4 for internet advertising, this record shall contain a copy of each screen on which the advertising appeared, an identification of the website and web address of each screen, and the dates on which the screen appeared at that web location; and the advertisement.
1.9 Additional Records. The office shall maintain any other records necessary to verify the licensee’s compliance with 5 Del.C. Ch. 22, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
5 Del.C. §2741
5 Del.C. §2741
1.1 All licensees shall comply with 5 Del.C. Ch. 27, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
2.1 its license issued under 5 Del.C. Ch. 27, and
4.2 When a licensee advertises with respect to its services under 5 Del.C. Ch. 27, the advertisement shall clearly and conspicuously may state that the licensee is licensed to engage in business in this State under that chapter and may specify the license number and expiration date of its license.
5.1 The Commissioner may examine licensees pursuant to 5 Del.C. §122. The costs of such examinations are assessed in accordance with 5 Del.C. §127(a). A licensee shall remit payment not later than 30 days after the date of the examination invoice.
5 Del.C. §2906(e)
1.1 Lease Contracts. 5 Del.C. Ch. 29 applies to a lease contract only when:
1.2 5 Del.C. Ch. 29 applies to all motor vehicles meeting the definition of that term in 5 Del.C. §2901(1) regardless of whether the intended use is personal or commercial.
2.1 All licensees shall comply with 5 Del.C. Ch. 29, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
3.1 Each licensed office open to the public shall prominently display its license issued under 5 Del.C. Ch. 29 in clear view of all customers.
5.21 Credit Life and Health Insurance
5.21.1 A licensee may offer credit life and health insurance to qualified borrowers. Such insurance transactions shall conform to Title 18 of the Delaware Code and all applicable Insurance Commissioner Regulations.
5.21.2 Every licensee offering credit life and health insurance whose charges do not conform to those authorized by Title 18 of the Delaware Code shall maintain in each office a copy of a submission to the Insurance Commissioner requesting the non-conforming charge and the Insurance Commissioner's approval of those charges.
5.21.3 Credit life insurance refunds shall be calculated as of the date of death except as permitted by 18 Del.C. §3705(b)(4).
5.21.4 Credit health insurance payments received by a licensee shall be applied to the account for the period the payment actually covers regardless of the date of receipt. Additional interest charges shall not accrue if payment is received after the payment due date.
5.2.5 A licensee may offer, but not require, only such other insurance products as the State Bank Commissioner may, upon written approval, permit.
5.3 Other Insurance.
5.3.1 Any licensee may require proof of insurance coverage for any loan secured by a motor vehicle or other collateral. The borrower has the right to submit any existing policy(s) naming the licensee as beneficiary, provided such policy is acceptable to the licensee as to coverage, term and carrier. Upon notification to the licensee of cancellation of any policy, the licensee may place coverage to protect the licensee's interest. The borrower shall be informed of such placement and any amount expended shall be due and payable by the borrower before a loan may be satisfied. A licensee may, if requested by the borrower, place such insurance coverage as is necessary to protect the licensee's interest at the inception of the loan.
7.4 When a licensee advertises with respect to its services under 5 Del.C. Ch. 29, the advertisement shall clearly and conspicuously state that the licensee is licensed by the Delaware State Bank Commissioner to engage in business in this State and specify the license number and expiration date of the license.
8.1 Every website that a licensee maintains shall meet the following requirements:
8.1.2 If the website allows the licensee to conduct any business governed by its license, the website shall properly secure the transmission of all confidential information entered on the website or otherwise exchanged between the licensee and any consumer or borrower.
Each licensee shall maintain and follow a written comprehensive policy that describes the manner and timing of repossessing collateral after default. The licensee shall review and update the policy as needed to insure it is consistent with current law and that it reflects the licensee’s current practices. Such Repossession Policy shall comply in all respects with 6 Del.C. Article 9, Secured Transactions, Part 6, Default.
11.1 The Commissioner may examine licensees pursuant to 5 Del.C. §§122 and 2906. The cost of such examinations are assessed in accordance with 5 Del.C. §127(a). A licensee shall remit payment not later than 30 days after the date of the examination invoice.
5 Del.C. §2906(e)
1.5.3.11 any other documents sent or received by the licensee pursuant to 6 Del.C. Article 9. Secured Transactions, Part 6. Default.
1.7.4 for internet advertising, this record shall contain a copy of each screen on which the advertising appeared, an identification of the website and web address of each screen, and the dates on which the screen appeared at that web location; and the advertisement.
1.8 Additional Records. The office shall maintain any other records necessary to verify the licensee’s compliance with 5 Del.C. Ch. 29, all regulations issued thereunder, and all other applicable State and federal statutes and regulations.
Last Updated: December 31 1969 19:00:00.
site map   |   about this site   |    contact us   |    translate   |    delaware.gov