NEWSROOM
- Depository Trust Company of Delaware.
The State Bank Commissioner will hold a public hearing at 10:00 a.m. on August 11, 2009, in the 3rd Floor Conference Room of the Carvel State Office Building, 820 North French Street, Wilmington, Delaware, to consider the application to form a new limited purpose trust company to be known as Depository Trust Company of Delaware, LLC.
- New Title Loan Requirements
On July 16, 2009, a new statute became effective that provides additional protection for consumers of a short-term loan product commonly known as a title loan. This law requires conspicuous disclosure of significant terms in such loans, provides a right of rescission, and limits the duration of an extension of a loan that a consumer can receive. It also requires that a lender offer a workout agreement to a consumer, limits the duration and amount of interest that can be charged when a loan is in default, and mandates compliance with certain federal and state consumer protection acts. The lender's recourse on a title loan is limited to the proceeds from the sale of the motor vehicle, and the lender is required in all cases to provide the borrower with a written explanation of the proceeds from the sale. The complete text of the statute can be found at: 145th General Asembly, Senate Bill #108
- New License Fee Surcharge for Pay-Day and Title Lenders
Effective July 16, 2009, any lender issued a license under Chapter 22 of Title 5 after that date must pay an annual high-cost loan license fee surcharge of $1,500 for each licensed office for making title loans or short-term consumer loans, commonly known as pay-day loans. This fee will be used to fund the creation of the Financial Literacy Education Fund. This Fund will be administered by the State Bank Commissioner and Secretary of Education to provide financial literacy education programs for consumers and schools.
- New Mortgage Loan Originator License Requirements
On July 6, 2009, Delaware enacted the Delaware S.A.F.E. Mortgage Licensing Act of 2009. This Act replaces the existing Chapter 24 of Title 5 to provide for the licensing of mortgage loan originators in accordance with the United States Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The new licensing requirements will be effective for all licenses issued after July 31, 2010, although the State Bank Commissioner may begin issuing licenses under the new Chapter 24 at any time after July 30, 2009. The full text of the new statute can be found at: 145th General Assembly, Senate Bill #73
