Compliance Alerts

September 2022

 

Effective State Changes

 

CALIFORNIA

Governor Gavin Newsom signed AB 2001 on August 26, 2022. This law allows licensees under the California Financing Law to designate employees who work remotely, so long as a consumer’s personal information is stored on an encrypted device or media in that location. Effective January 1, 2023.

On September 13, 2022, Governor Newsom approved AB 2956. The provisions in this bill allow for the suspension of a motor vehicle dealer license for a number of reasons, like abandoning a principal place of business, the cancelation or suspension of corporate status, or if the licensee’s seller’s permit is suspended, revoked, or canceled by the Department of Tax and Fee Administration. Effective January 1, 2023.

California AB 2311was enacted by the Governor on September 13, 2022. This act creates a number of new contractual obligations under which the seller agrees to cancel or waive all or part of amounts due on the buyer’s sale contract. Among other provisions, the law:

  • Prohibits the sale of a GAP waiver where the loan-to-value ratio exceeds the maximum loan-to-value ratio of 4% of the underlying loan's principal;
  • Contains specific rules for the refund of GAP waiver amounts at termination;
  • Allows the buyer to recover three times the amount of GAP charges if a holder of a contract includes GAP waiver;
  • Defines a GAP waiver as optional and conditional to the sale contract;
  • Creates a restriction that the purchase of a GAP waiver cannot be required to get a loan, particular loan terms, or a certain price;
  • Requires that the cost of the GAP waiver must be a separately stated add-on item;
  • Requires that the name and mailing address of any third-party GAP waiver administrator known at the date of the sale.

Effective January 1, 2023.

California AB 1904 was signed on September 15th. It states that it is a violation of California law to not present certain disclosures to a consumer of financial products like debt settlement agreements or within advertising from student loan debt relief providers and credit repair companies. Effective January 1, 2023.

 

NORTH CAROLINA

Governor Roy Cooper signed HB 776 on July 8, 2022. Following trends seen throughout the pandemic, this law allows notaries to perform online notarial acts. Effective July 1, 2023.

 

RHODE ISLAND

HB 7781 was enacted on June 29, 2022, by Governor Daniel McKee. This bill allows employees of licensed financial institutions to work remotely, and also requires loan originators and mortgage brokers to pay a fee and license with the Nationwide Multistate Licensing System. Effective immediately.