AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LENDERS AND LOAN BROKERS

HB 5581 removes an existing licensing exemption for lenders who originate fewer than six loans in any 12-month period. This directly affects small lenders and loan brokers currently exempt from licensing requirements if they make under six loans annually. The bill requires these entities to obtain a license under Rhode Island's financial institution regulations, eliminating the previous exception. It does not change licensing rules for other exemptions listed in the law, such as for nonprofits, large loans, or specific financial institutions. The bill would take effect upon passage.