Frequently Asked Questions

Banking | Credit Union | Consumer Finance | Mortgage Loan Originator | Securities

Banking FAQ:

  1. How do I form a new bank in Idaho?

    Banks can be either state or national-chartered. If a state charter is desired, contact the Idaho Department of Finance at (208) 332-8000 or e-mail us at fmail@finance.idaho.gov. We will be happy to discuss the application process for starting a new bank in Idaho. If a national bank charter is desired, contact the Office of the Comptroller of the Currency at (415) 545-5900.

  2. What is the maximum amount in my bank account that is insured?

    Up to $100,000 per depositor is federally insured. Multiple accounts at a single bank are aggregated for deposit insurance purposes. For additional information about insurance of bank deposits, contact the Federal Deposit Insurance Corporation at (800) 934-3342.

  3. When I tried to cash a check, the teller asked for my thumbprint. Can they do this? Is this required by law?

    Several banks have started requiring thumbprints from non-customers who wish to cash checks. Banks may do this, but it is not mandated by law. The purpose of the thumbprint identification is to reduce check fraud, which can be very costly to both the bank and its customers. Test studies in other states have indicated that this practice can reduce check fraud by up to 50%. You can avoid thumb printing by depositing checks directly into your personal bank account.

  4. Are shares of mutual funds or annuities purchased from my bank or a bank affiliate insured by the FDIC or in any way guaranteed by the bank?

    No, mutual fund shares purchased at a bank carry the same risk as any other mutual fund shares, including the possible loss of principal. Annuities are only as safe as the insurance company underwriting them. Your bank should be able to provide you with information concerning the insurance company's financial condition.

  5. Does the Department of Finance regulate the amount of interest banks charge on loans?

    No, the rate of interest is not limited by law. Interest rates generally reflect market rates and may be whatever interest rate the bank and customer agree to.


Credit Union FAQ

  1. What is the difference between a state and a federally chartered credit union?

    State chartered credit unions are regulated by the State of Idaho, Department of Finance, and federally chartered credit unions are regulated by the National Credit Union Administration (NCUA). Each regulator has its own credit union law, rules and regulations although there are many similarities.

  2. How do I organize a credit union?

    There are two authorities which charter credit unions in Idaho. They are the Department of Finance, State of Idaho, and the NCUA, 1230 W.Washington Street, Suite 301, Tempe, AZ 85281. The Idaho Credit Union League, in Boise, ID can also assist with the organization.

  3. Is a credit union a "Corporation"?

    A credit union is a cooperative, nonprofit financial corporation owned by its members and chartered by the Department of Finance, State of Idaho, or the NCUA. Organized to serve, democratically-controlled credit unions provide their members with a safe place to save and borrow at reasonable rates. Members pool their funds to make loans to one another. The members elect the volunteer board that runs each credit union. The credit union motto is: "Not for profit, not for charity, but for service."

  4. How do I file a complaint against a credit union?

    A written complaint is sent to the Director, Department of Finance, State of Idaho, P.O. Box 83720, Boise, ID, 83720-0031, or via the Internet In the case of a federal credit union, complaints should be filed with the NCUA.

  5. Who is the agent for "Service of Process"?

    The Board Chairman or the Chief Executive Officer of the named credit union is the agent for "Service of Process".

  6. Can I join any credit union?

    Each credit union is made up of a common bond "Field of Membership" (FOM). If you are within that FOM, you are eligible to join. You would not be limited to membership in one credit union but could, in fact, join several credit unions if you fall within their FOM.

  7. What happened to "XYZ" credit union?

    If a credit union is no longer in business, it usually merged with another and, generally, a larger credit union to provide additional services and products to the members. To find a credit union that is no longer in business, you can contact the Idaho Department of Finance (if the credit union was chartered by the state) or the NCUA (if federally chartered).


Consumer Finance FAQ:

  1. How much interest can a company legally charge me?

    The Idaho usury laws were repealed by the legislature in 1983, so there is no cap on the interest you can be charged. The binding rate is whatever is agreed upon by both parties.

  2. Can I be charged a fee for a loan before I get the loan?

    Businesses that arrange for loans (*"loan brokers") cannot receive a fee until the loan, or written commitment to loan, is made. Legitimate lenders never "guarantee" or say that you are likely to get a loan or a credit card before you apply, especially if you have bad credit, no credit, or a bankruptcy. If you apply for a real estate loan, it is an acceptable and common practice for lenders to request payment for a credit report or appraisal. If you have been victimized by an advance-fee loan scam, file a complaint with the Federal Trade Commission (FTC). You may contact the Consumer Response Center by phone, toll-free at 1-877-FTC-HELP (382-4357), TDD: 202-326-2502, by mail at Consumer Response Center, Federal Trade Commission, 600 Pennsylvania Ave, NW, Washington, DC 20580, or through the Internet at www.ftc.gov.

  3. What are my rights regarding vehicle repossession?

    Your creditor or lessor has legal authority to seize your vehicle as soon as you default on your loan, as defined by your contract. They can do this without warning you in advance so long as they do not breach the peace. They usually may not keep or sell any personal property found inside. If the car is sold, the creditor must pay you any amount received in excess of the debt and reasonable repossession and storage fees. Even if you return the car voluntarily, you are responsible for paying any deficiency on your sale or lease contract.

  4. How do I find out if a collection agency, lender, or consumer credit seller is licensed in Idaho?

    Contact the Consumer Finance Bureau at (208) 332-8002, or toll free in Idaho at 1-888-346-3378, or check our website at http://finance.idaho.gov.

  5. How do I file a complaint against a collection agency or lender?

    Contact the Consumer Finance Bureau at (208) 332-8002, or toll free in Idaho at 1-888-346-3378, or check our website at http://finance.idaho.gov.

  6. How do I file a complaint against a bank?

    The Department regulates Idaho state chartered banks. Complaints against those banks can be directed to the Consumer Finance Bureau at (208) 332-8002, or toll free in Idaho at 1-888-346-3378, or check our website at http://finance.idaho.gov.

    If the complaint involves a national bank, federal thrift, or state charted bank from another state, while we may not have direct jurisdiction over the subject of the complaint, we are willing to assist you by either providing the name of a person you may contact at the financial institution, or contact information for the appropriate regulator. Following is information for filing complaints with referral regulators against national banks or federal thrifts.

    For national banks or those with "N.A." after their name, contact the Office of the Comptroller of the Currency (OCC):

    • By telephone: 1-800-613-6743
    • By e-mail: customer.assistance@occ.treas.gov
    • By facsimile: 1-713-336-4301
    • By mail: Customer Assistance Group,
      1301 McKinney St. #3710
      Houston TX 77013

    For federal savings banks and thrifts, contact the Office of Thrift Supervision (OTS):

  7. How do I file a complaint against a credit card company?

    Where to file a complaint depends on what institution issued the credit card. We are willing to assist you in determining the identity of the issuing institution. Please call us at (208) 332-8002, or toll free in Idaho 1-888-346-3378.

  8. How do I contact a credit bureau?

    Following is contact information for the three credit bureaus:

    • Equifax: (800) 685-1111, P O Box 105783, Atlanta GA 30348
    • Experian (formerly TRW): (800) 682-7654, P O Box 2104, Allen TX 73013-2104
    • TransUnion: (800) 916-8800, P O Box 390, Springfield PA 19064-0390

Mortgage Loan Originator FAQ

  1. If I am structured as a sole proprietor and I have an Idaho mortgage broker/lender license, do I also have to get a loan originator license in order to engage in loan origination activities in Idaho?

    No. As long as you maintain an active Idaho mortgage broker/lender license in your individual name and remain exclusive to yourself in residential mortgage loan origination activity, you are not required to obtain a separate individual loan originator license. However, if you are the QPIC, you remain subject to the continuing education requirements.

  2. If I am a loan originator for an Idaho licensed mortgage broker/lender that is a corporation or LLC – and I am an owner of that corporation or LLC, do I have to get an individual loan originator license before I can conduct loan origination activities in Idaho?

    Yes. Any individual conducting loan origination activity in Idaho must be licensed, unless (i) exempt under Idaho Code §26-3103, or (ii) already licensed under the Idaho Residential Mortgage Practices Act as a sole proprietor in his or her own name. There are no licensing exceptions for owners of corporations, LLCs, or any other type of business entity when such owners are engaged in loan origination activities in Idaho.

  3. Do I have to live in, or have a physical office in Idaho to get a loan originator license?

    No, Idaho is not a brick & mortar state. However, you must have a license for the physical location that you conduct loan origination activities from.

  4. Can I originate loans while my application is pending?

    No. Origination activity may not be conducted until a license is approved.

  5. Can I do one loan as an exception without a license?

    Not if there is any form of compensation involved -- that means to you, or your employing firm, or any of its employees or agents.

  6. If I agree to do the loan for free, is that an exception?

    If your firm provides a written request, signed by a party with binding authority, certifying that neither the company, the originator nor any employee or agent will receive any form of compensation, front end or back end, the Department will issue an exclusion confirmation. The company will agree to provide a copy of the HUD-1 at closing for verification.

  7. If I get a loan originator license, can others in my company originate loans and assign them to me if they don’t have one?

    No. Origination activity prior to receiving a license is a violation of the IRMPA. Licenses may not be “rented” or used by parties other than the individual the license is issued to. Any misuse of a license will be considered a misrepresentation, and thus a violation of the IRMPA.

  8. I formed an LLC for all my income to help with tax liabilities. Can my employer pay my commissions directly to my LLC? What if I am paid as a 1099?

    The answer in both situations is “No”. Compensation may only be paid to a licensee—the LLC is not a licensee. The LLC cannot become a loan originator licensee as loan originators must be natural persons.

  9. I have a felony conviction—will that stop me from getting a license?

    Not necessarily -- the answer will depend on the many factors such as what the offense involved, when it took place, whether there is still probation or parole involved, whether there is ongoing restitution involved, etc. If the offense involved the financial services industries of any kind, it will have more of an impact. Contact the Department prior to filing a license application for the additional items to be submitted.

  10. I filed bankruptcy a few years ago -- will that stop me from getting a license?

    Not likely, if that's the only issue and you are able to secure a surety bond. Follow the application instructions for submitting an explanation and evidence of current status.

  11. Is there a test in order to get a license?

    No, not at this time.

  12. Can I originate loans for more than one company?

    No, Idaho Code 26-3114A (1) and (2) prohibit conducting origination activities for more than one licensee simultaneously..

  13. Do I have to hang my license where I work or can I just file it?

    Idaho Code 26-3108A (5) requires the original license be maintained at the company's mainoffice, but a copy of the license must be displayed at the loan originator's principal physical work location.

  14. Can I apply for a license before I have a job?

    Yes, you may apply prior to association with a licensed mortgage company, however, a license will not be issued until employment is verified. Pre-employment submission of the application package allows you time to shop bond rates and clear dificiencies, if there is additional information that is needed. Your license would then be maintained in an "unassigned" category until employment is verified. No origination activitiy may be conducted while a license is in an unassigned category.

  15. How long can a license stay in an "unassigned category"?

    A license may remain in an “unassigned” category indefinitely at this time. However, once a license is issued, if it returns to an unassigned status due to an employment change, a license may remain in an “unassigned” category indefinitely only as long as renewals and continuing education requirements are maintained and current.

  16. If I get a license issued in September, will I have to renew in October and pay more fees?

    Licenses issued after September 1, will be issued with expiration dates of the following year and will not be required to be renewed in the calendar year issued. Licenses issued prior to September 1 will be required to be renewed in the year issued.

  17. What happens if I don't renew my license on time -- is there a late fee?

    If a renewal is not filed, or completed, by October 31, the loan originator license will expire by operation of law. Than means all origination activity must cease until a new license applicationis filed and granted. The departmend will review all renewal applications postmarked by October 31. However, if the renewal is incomplete, there is no extra time available to complete it or late fees to be paid that will continue the existing license.

  18. Do I have to take any classes before I get a license?

    No, not at this time. All education requirements are post-licensure.

  19. How many credits do I have to get for Continuing Education?

    Licensees and designated Qualified Persons in Charge must obtain sixteen (16) credit hours in each two-year reporting period. Two (2) hours must be related to the IRMPA and its Rules, and fourteen (14) hours in approved topics listed in Rule 010.03.

  20. When does my continuing education reporting period start?

    Your initial reporting period will begin on November 1st immediately succeeding the date of your initial licensure. For example, if your license was issued in August 2006, your initial two-year continuing education reporting period will begin November 1, 2006, and will end on October 31, 2008. If your license is issued on November 4, 2006, your initial reporting period won’t begin until November 1, 2007 and will end on October 31, 2009.

  21. If I get more than the required sixteen (16) hours of credits, can I use them in the next reporting period?

    No, excess CE credits do not carry over into new reporting periods.

  22. If I take classes in Utah, can I use them for my Idaho license?

    It’s possible. If the classes were presented by an agency or organization that was granted presumptive accreditation in the Rules, or an entity listed on the Department’s approved-licensee webpage, and the topics meet the requirements listed in the Rules, then the credits most likely would count towards the Idaho requirements. However, if the course is presented by an unapproved firm or a non-presumptively accredited provider then the course credits will not apply in Idaho. The status of an attendee’s license or application will also determine acceptability.

  23. What happens if I don't get all my credits by the deadline?

    You risk suspension or revocation of your license. Licenses will not be reinstated or a new license granted until all credits for the period are submitted and verified.

  24. Where can I get information on courses I can take?

    The Department will make this information available on its website as it becomes available. As providers are approved, their information will be listed in the approved providers section. Those entities granted presumptive accreditation are not required to file schedules of course offerings but we expect that as word gets out, course information will be provided to us to assist licensees. In the meantime, check with the national mortgage brokers and lenders associations, HUD, VA and others listed in the Rules for educational opportunities.

  25. When do I send in completion certificates?

    If the course was provided by a presumptively accredited provider, completion certificates must be sent in within 30 days of course completion. If the course was provided through a company approved by the Department, then certificates may be filed at any time, but must be filed within 30 days after the end of the reporting period during which the course was taken.

  26. What do I do if I don't get a completion certificate from a course I attend?

    Approved education providers are required to issue a completion certificate with certain specific information contained. Contact the provider if you did not receive one. If the course was offered by a presumptively approved provider, and no certificate was issued, then complete a Form EDU-950, attach course information and a $25 review fee, and submit the information to the Department within 30 days of course completion.

  27. If I take a course and really like it, can I take it again?

    You may not repeat a successfully completed course, by the same provider, within the same reporting period, for credit. You may take it for personal interest if you like, but no credit hours will be granted.


Securities FAQ

If I don’t find the answer to my question here, what number may I call? (208) 332-8004 or toll free within Idaho at 1-888-346-3378.

Broker Dealer Firms:

  1. Are broker-dealer firms required to send annual financials?

    Only if the firm is not a FINRA (formerly NASD) member.

  2. Is there a de minimus exemption from broker-dealer firm registration?

    Yes. If the firm has no place of business in Idaho, and has had 3 or less Idaho customers in the previous 12 months, it is exempt from registration.

  3. When applying for broker-dealer registration through the Central Registration Depository (CRD) system, is my firm required to send anything directly to Idaho?

    No

  4. What are Idaho’s fees to register as a broker-dealer?

    $200 for the firm and $50 per agent paid through the CRD system.

  5. Is a Designated Principal required for a broker-dealer firm?

    No

  6. Do you require notification of branch offices located in Idaho? If so, is there a fee required?

    Yes, we require notification of opening, closing and amending branch offices. This may be done through the CRD system by completing the Form BR. There is no state fee required.

Broker Dealer Agents:

  1. How do I get licensed to sell securities?

    You must be affiliated with a broker-dealer firm that is licensed in Idaho. A compliance officer within the firm should guide you through the application process.

  2. How much does it cost to get licensed?

    Idaho’s fee is $50. Please note there may be other costs involved that are not for our Department.

  3. What examinations are required for broker-dealer agents to become licensed?

    The Series 63 or 66, plus at least one other general securities exam. The other exam(s) depend on what type of securities you are selling. Your firm and the FINRA (formerly NASD) will help you determine what exam(s) you need.

  4. How do I get scheduled to take an exam?

    You must have a sponsor (i.e. a broker-dealer firm) in order to take almost all exams. Your broker-dealer firm will get you scheduled for any needed exams. Please note that if you wish to take the Series 63, 65 or 66, you do not need a sponsor. Information on how to get scheduled for those exams may be found at www.finra.org. Under Exams & Qualifications link into the Form U-10. The information and costs for the, Series 63, 65 and 66 are on Page 3, letter C. The U-10 is the application to get scheduled to take an exam if you are not affiliated with a sponsoring firm.

  5. What is the cost to take an FINRA (formerly NASD) examination?

    A registration and exam fee schedule may be found at www.finra.org

  6. Where are the testing centers located?

    The locations and other related information may be found at www.finra.org

  7. Where may I obtain study material for a test?

    A list of study material vendors may be found at www.nasaa.org.

  8. If I have further questions regarding the exam process, what number may I call?

    You may call the FINRA (formerly NASD) help desk in Rockville, MD at 301-590-6500.

Investment Adviser Firms:

  1. Are investment adviser firms required to send annual financials?

    Only if the firm is Idaho based and state regulated.

  2. Is there a de minimus exemption from investment adviser firm registration?

    Yes. If the firm has no place of business in Idaho and has had 5 or less Idaho clients during the previous 12 months it is exempt from licensing or from having to notice file.

  3. When doing a notice filing through the Investment Adviser Registration Depository (IARD) system, is my firm required to send anything directly to Idaho?

    No

  4. What are Idaho’s fees to register or notice file an investment adviser firm?

    State Regulated firm-$150; Federally Regulated firm-$30 paid through the IARD system.

  5. How does a State Regulated firm become registered?

    Please refer to the “Investment Adviser Application Checklist” at Securities Forms. Refer to #2A or #2B” depending on where your firm is based.

  6. How do I add or delete agents to my firm?

    Please refer to Chapter 9 of the IARD User’s Manual at www.iard.com/firm_users_man.asp

Investment Adviser Agents:

  1. What examinations are required for Investment adviser agents to become licensed?

    Either the Series 65 or the Series 66 and 7. For more detailed information including waivers and exemptions, please refer to the “Investment Adviser Representative Application Checklist” at Securities Forms

    Note: For additional exam questions you may have, please refer to the answers given above under “Broker-Dealer Agents.”
  2. How much does it cost to get licensed?

    Idaho’s fee is $30. Please note there may be other costs involved that are not for our Department.

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