Most states regulate lenders to some degree and many have very strict rules and rates that must be followed. Some states prohibit small lenders altogether and some states have no regulations at all. States with no or very few regulations are called “Open States”. Contact your state authority for what applies in your area.
Small Loan Software
As with state rules and rate regulation, some states require lenders to use state approved software and some states have no requirement. States requiring approved software do so as much for your protection as for the borrower. Making illegal or usurious loans can have severe consequences and if your state requires you to use approved software, never attempt to use something else.
LoanTec is currently being used in Texas, Oklahoma, New Mexico, Colorado, Tennessee, Utah, and California.
There are versions available for Alabama and Georgia.
LoanTec has a version available for “Open States”. Open states have very few, if any, rules or statues regulating small lenders. Generally, you can charge whatever you and the borrower agree to. Be sure you understand what rules may apply before using LoanTec’s “Open” state program.
If your state is not listed, contact LoanTec Support. Many states rules and rates are very similar and only require small changes to be compliant.
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