Supervised Lender FAQ

Is Maine a "brick & mortar" state?

No, supervised lenders from other states can operate in Maine without maintaining a physical office location in the state, as long as the company holds a license issued by the Bureau of Consumer Credit Protection.

Can I broker and lend (1st & 2nd mortgages) with my lender license?

Yes, you may both broker and lend, first lien loans, junior lien loans and even any type of unsecured consumer loans under a Maine supervised lender license. However, when acting as a broker, lenders must include the Broker's disclosure statement in the consumer's contract.

What is needed to change license types from a Broker to a lender?

To switch from a broker's license to a lender's license, your company must file a separate lender's application. However, because the applicant already filed for one license (the Broker's license), the application process generally moves more quickly and easily than a normal lender's application would.

What is needed to change license types from a Broker to a lender?

Yes, a supervised lending license only applies to the specific name on the license; any changes to the company's name must be reflected by a new license. Companies may not advertise loans under an altered name without first acquiring a license for the alternate name.

In the case of a change in ownership, if more than 50 percent of the company changes hands, the company's license will be reviewed by the Bureau of Consumer Credit Protection . However, the Bureau will look more closely at a change in ownership under certain circumstances. For example, when the new owners are not part of the previous corporate family or if the new owners replace the company's management team, the Bureau of Consumer Credit Protection will more closely inspect the validity of the company's original license.

How many loans can I make without being licensed?

Supervised Lenders may issue up to five (5) regular loans or two (2) section 32 loans ("high-rate, high-fee" loans subject to HOEPA) per calendar year. However, unlicensed companies cannot, under any circumstances, broker loans. An unlicensed company must close all loans under its own name (see 9-A M.R.S. § 1-301(17)).

Do commercial lenders need to be licensed by the Bureau of Consumer Credit Protection?

No, Maine does not license commercial lenders. Contract law regulates commercial lending companies.

If I make a loan to someone in Maine do I have to follow Maine state law or the laws in my own state?

Your company must follow the laws of the state of the consumer's principal residence in all cases. Therefore, if your supervised lending company is located in another state, and wishes to make a loan to a Maine resident, the company must abide by Maine state law. State law also takes precedence if a licensed lending company physically located in Maine wishes to make a loan to an out of state consumer.