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SB 3075

AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES

2026 Regular Session Introduced by Jake Bissaillon and 3 co-sponsors

Rhode Island requires large nonbank mortgage servicers to hold capital/liquidity, maintain governance and internal controls, and undergo annual external audits and risk management.

06/23/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 3075

Summary of Bill SB 3075 (Rhode Island, 2026)

Title

AN ACT RELATING TO FINANCIAL INSTITUTIONS -- LICENSED ACTIVITIES

Purpose and intent

SB 3075 introduces new regulatory requirements governing nonbank mortgage servicers, referred to as “covered mortgage servicers.” The bill creates capital, liquidity, governance, audit, and risk-management standards to enhance safety and soundness in the servicing of residential mortgage loans in Rhode Island. The act is effective upon passage.

Key takeaway: Establishes a comprehensive supervisory framework for certain mortgage servicers to ensure financial resilience, proper governance, and robust risk management.

Scope and definitions (section 1)

  • The bill modifies the definitions in Chapter 19-14, clarifying and adding terms related to mortgage servicing and related financial activities. It encompasses concepts such as corporate governance, servicing liquidity, risk management, external audits, and the roles of boards, internal and external auditors, and senior management.
  • A “covered mortgage servicer” is generally a nonbank servicer with two thousand (2,000) or more one- to four-unit residential loans serviced or sub-serviced for others, operating in two or more states, and meeting certain NMLS reporting criteria.
  • It distinguishes related activities (e.g., table-funding, sub-servicing, servicing, MSR investors) and sets the framework for who is subject to the new requirements.

Key new requirements for covered mortgage servicers (Section 2: 19-14.11-5 to 19-14.11-7)

  1. Capital and liquidity

    • Servicers must maintain capital and liquidity in accordance with GAAP.
    • Eligibility benchmark: If a servicer meets the FHFA’s Eligibility Requirements for Enterprise Single Family Seller/Servicer (whether or not they are approved by Fannie Mae, Freddie Mac, or Ginnie Mae), they meet the baseline capital and liquidity expectations.
    • Institutions must maintain written policies/procedures for capital and liquidity, including sustainable methodologies, and keep these available to the Rhode Island Director or designee.

  2. Operating liquidity and planning

    • Require sufficient liquidity beyond servicing needs to cover normal operations.
    • Licensees must have cash management and business operation plans aligned to their size and complexity.
    • Plans must include sustainable methodologies for maintaining operating liquidity and be available to the director upon request.

  3. Corporate governance and board oversight

    • Establish and maintain a board of directors responsible for oversight (or an alternative governance body if allowed by federal programs).
    • The board must implement a governance framework, internal controls, regulatory reporting (including NMLS Mortgage Call Reports), and ongoing oversight of compliance.
    • Internal audits: obligation to establish internal audit requirements with independence appropriate to risk profile, with results available to the director.

  4. External audit and risk management

    • Annual external audit by an independent public accountant is required, including:
      • GAAP financial statements (with notes)
      • Internal control assessment
      • Tangible net worth calculation
      • Validation of MSR valuation and reserve methodology (if applicable)
      • Fidelity and E&O insurance verification
      • Controls testing for risk management activities
    • Implement a comprehensive risk management program overseen by the board, addressing:
      • Credit, liquidity, operational, market, legal, and reputation risks
      • Processes/models to measure, monitor, and mitigate risks
    • Annual risk management assessment presented to the board and available to the director.

Applicability and exclusions (Section 3)

  • Sections 19-14.11-5 and 19-14.11-6 apply to covered mortgage servicers at the servicer level within a holding company structure.
  • Exclusions: not apply to not-for-profit servicers or housing finance agencies; exclude servicers primarily owning or conducting reverse mortgage servicing.

Authority and enforcement

  • The Director or the Director’s designee may adopt rules necessary for implementation and may impose additional conditions on high-risk servicers or exempt low-risk ones under certain circumstances. Temporary suspensions may be used in extreme events.

Effective date

  • Takes effect upon passage.

Potential impact

  • Strengthens the regulatory regime for large nonbank mortgage servicers in Rhode Island.
  • Increases compliance costs (audits, governance, risk management, capital requirements).
  • Aims to improve resilience, consumer protections, and regulatory transparency in mortgage servicing activities.

Compiled from official sources — confirm details with the bill’s official record.

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