All Roll Calls
Yes: 102 • No: 0
Rhode IslandH78672026 Regular SessionHouse
AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES .
Sponsored By: Joseph J. Solomon, Jr. (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 1 benefits, 0 costs, 8 mixed.
Stronger rules for large mortgage servicers
The law sets capital and cash requirements for covered nonbank mortgage servicers that handle 2,000+ loans in 2+ states. Servicers can meet some tests by qualifying under FHFA seller/servicer standards and must use GAAP accounting. They must keep written policies, cash management plans, and enough operating liquidity for normal expenses. A board (or similar body) must oversee governance, risk, and timely filing of the NMLS Mortgage Call Report. Internal audits and a yearly external audit are required, and reports must be shown to the director on request. The rules apply at the servicer level, even inside a larger holding company.
Who counts as a mortgage servicer
The law explains what loan “servicing” means. It covers taking your payments, handling escrow, and sending money to the loan owner. For reverse mortgages, it also includes paying money to the borrower. It also defines a third‑party loan servicer as a company that services Rhode Island home loans or owns the servicing rights, even if someone else does the work. These definitions help set who must follow state servicing rules and apply through January 1, 2027.
Clear rules for mortgage roles and steps
The law clarifies who is a loan broker and what counts as loan solicitation, processing, underwriting, and negotiation. It defines mortgage loans, the primary market, table-funding deals, and retail installment contracts. It explains who is a sub-servicer or a mortgage servicing rights investor, and defines mortgage-backed securities and negative equity. These meanings guide who must be licensed and supervised in Rhode Island. These definitions are in effect until January 1, 2027.
Multistate licensing system and call reports
The law recognizes the multistate system states use to license and supervise lenders and brokers. Licensed entities must file Mortgage Call Reports with data on originations, servicing, and finances, quarterly or annually. These definitions guide filings and payments and are in effect until January 1, 2027.
Who counts as an employee or owner
The law treats workers paid on a W-2 as employees for licensed firms and excludes 1099 workers. It defines what employer oversight looks like for licensing. It sets conditions for provisional employees tied to certain bank-affiliated brokers and when staff may work from a remote location. It also defines a principal owner as holding 10% or more and clarifies nonprofit status. These rules apply until January 1, 2027.
Clearer definitions for consumer loans
The law standardizes what counts as a loan. It includes mortgages, payday or deferred‑deposit loans, retail installment contracts, student loans, and insurance premium financing. A small loan is under $5,000 and not secured by real estate; small‑loan lenders are those who make them. The law explains who is a lender in Rhode Island, how simple interest is calculated, and what an insurance premium finance agreement and company are. It also defines who is a licensee. These definitions set who must be licensed and what deals are covered, and apply through January 1, 2027.
Rules for check cashing and digital money
The law clarifies which items count as checks for check‑cashing rules and excludes traveler’s checks and foreign‑currency instruments. It defines a check casher and when a check is considered delivered. It defines currency transmission to include selling payment instruments, sending money for others, and holding virtual currency for others for personal or household use. It also defines stored value and excludes merchant‑only value, loyalty points, in‑game currencies, some native tokens, and certain gift cards. These definitions apply through January 1, 2027.
Rules for money orders and virtual currency
The law defines virtual currency and excludes certain items like store rewards, in-game currency, proprietary tokens, and Reg E gift or prepaid cards. It defines monetary value, personal money orders, and what it means to sell a check. These rules set who must be licensed for money transmission and check-related services. These definitions are in effect until January 1, 2027.
Stronger oversight of large mortgage servicers
The law sets firm rules for large nonbank mortgage servicers. A servicer is covered if it services 2,000 or more one‑to‑four unit home loans, operates in two or more states, and this count excludes whole loans it owns and loans only interim‑serviced before sale. Covered servicers must keep enough capital and servicing liquidity under GAAP, have a board in charge of governance and compliance, run an internal audit, and get a yearly external audit of financials, controls, tangible net worth, servicing‑rights valuation, and required insurance. They must ensure accurate, timely regulatory reports, including the NMLS Mortgage Call Report. Some servicers are exempt from the financial‑condition section, including not‑for‑profits, housing finance agencies, and servicers that only handle reverse mortgages. The director can add extra conditions for very high‑risk firms, relax some rules for very low‑risk firms, or pause parts of the rules during severe events with public notice. These definitions apply through January 1, 2027.
Sponsors & Cosponsors
Sponsor
Joseph J. Solomon, Jr.
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 6/9/2026
FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES In Concurrence Passage
Yes: 36 • No: 0
House vote • 5/26/2026
INSTITUTIONS-LICENSED ACTIVITIES PASSAGE
Yes: 66 • No: 0
Actions Timeline
Signed by Governor — Chapter 416
6/23/2026GovernorTransmitted to Governor
6/18/2026GovernorSenate passed in concurrence
6/9/2026SenatePlaced on Senate Calendar (06/09/2026)
6/5/2026SenateHouse read and passed
5/26/2026HousePlaced on House Calendar (05/26/2026)
5/22/2026HouseCommittee recommends passage
5/21/2026Scheduled for consideration (05/21/2026)
5/15/2026Committee recommended measure be held for further study
4/28/2026Scheduled for hearing and/or consideration (04/28/2026)
4/24/2026Introduced, referred to House Corporations
2/27/2026House
Bill Text
H7867 - As Introduced
2/27/2026
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