Cornerstone Support - State Licensing and Insurance for Debt Collection Industry

1. Licensing panelnacara 2019 Christy y.barger- cornerstone support, inc.

2. Cornerstone support, inc. Upon its inception 21+ years ago, Cornerstone Support became the first of its kind, assisting the state licensing and commercial insurance needs of the debt collection industry. Cornerstone quickly gained the reputation as the premier state licensing and insurance provider. We have served as a valued partner to thousands of collection agencies, debt buyers, and attorneys. Cornerstone’s level of experience, knowledge, and quality trained staff allows our clients to run their business while we focus on licensing.

4. LICENSING BONDS INSURANCE BONDS: In the states with bond requirements, surety bonds are required as part of a license or registration application. Our in-house surety company can supply all of your bonding needs. LICENSING: This includes developing a licensing strategy to fit the agency’s needs. Once a project is scoped Cornerstone generates and completes all necessary applications, supplements, and questionnaires; setting up registered agents, resident managers, and submitting any necessary documents to and following up with the appropriate state offices. INSURANCE: It is important to use an insurance agent like Cornerstone who understands the ARM industry and its insurance needs. Our in-house insurance agency stays up do date and offers the most competitive and comprehensive policies.

5. Each state has the right to enact its own set of collection laws and requirements.  For agencies seeking nationwide compliance, this creates a gauntlet of regulations that is not only confusing, but can prove costly if misunderstood or neglected.

6. What is the licensing process ?

7. Develop a Licensing Strategy Who - Identify what types of credit grantors you are currently representing and what types of credit grantors you want to attract.  Most national credit grantors understand licensing requirements and expect their agencies to be appropriately licensed in all jurisdictions. What - Identify the type of debt you are currently collecting and what type of debt, commercial and/or consumer, you would like to collect. Where - In what states are you currently communicating with or anticipate communicating with debtors? The statutes are consistently clear that communicating with a debtor, whether by phone or mail, without being licensed is a violation of the law.

8. Implement • The complexity of licensing requirements varies significantly from state to state.  At a macro level an agency must perform the following tasks in order to be licensed in a given state: • Assign a Registered Agent/Agent of Record • Obtain a Certificate of Authority • Obtain a Collection Agency Bond • Obtain a Debt Collection License • Obtain a Resident Manager (where necessary) • Perform background collector checks

9. Behind the Scenes-Initial • Initial executed licensing agreement received by Cornerstone’s Initial Project Manager from Sales • Kick Off Call / Project Introduction—Conference call with Cornerstone’s Initial Project Manager to discuss project specific details and to confirm high-level contacts • Forward Questionnaires to high-level contacts • 4. Upon receipt of completed questionnaires — • Dedicated Initial Licensing Representative assigned to client • Application Packages are prepared per information provided by questionnaires, & then forwarded to client. For ease of completion application Packages are Clearly Subdivided and Flagged where Original Signature, Notary, & Internal Time-Sensitive Information are required • Dedicated specialist is available during the completion process to assist with questions as the applicant complete the application package. • Upon application return a dedicated Initial Licensing Representative reviews each application for completeness • If any application is incomplete Initial Licensing Rep. contacts client for additional information • Fully completed applications forwarded to respective states and/or information provided by client is entered into the appropriate state web filing format. Note, if the filing is online Cornerstone enters the information but requires client to review and submit • Regular appropriate follow-up with the state-Address any filing questions and concerns if applicable • Confirm approval via regulators’ state website and/or receive renewed certificate • Forward to the client the approval information and upload approved certificate into our client Portal • Renewal Department is advised of all Expiration & Reporting Due Dates

10. Maintain Maintaining statutory compliance in an ever-changing regulatory environment can be complicated and time consuming. These 3 steps are crucial to maintain compliance: Submit all necessary renewal applications in a timely manner. Constantly monitor operational changes within your organization and understand there impact on state licensing. Constantly monitor proposed state and local legislation that impacts state licensing, as well as, other authoritative regulatory guidance (changes to existing rules and regulations, statutory clarification, etc.). 

11. Behind the Scenes-Renewal • Renewal licensing agreement received by Cornerstone’s Renewal Project Manager from Sales • Kick-Off Call / Project Intro— Conference call with Cornerstone’s Renewal Project Manager to discuss / confirm project specific details and high-level contacts • Verify Corporate Registration &/or Licensure via state regulator & confirm Renewal Due Dates • Dedicated Renewal Licensing Representative assigned to client • Application Packages are prepared as the come due per information provided by questionnaires, & then forwarded to client. For ease of completion application Packages are Clearly Subdivided and Flagged where Original Signature, Notary, & Internal Time-Sensitive Information are required • Dedicated specialist is available during the completion process to assist with questions as the applicant complete the application package. • Upon application return a dedicated Renewal Licensing Representative reviews each application for completeness • If any application is incomplete Renewal Licensing Rep. contacts client for additional information • Fully completed applications forwarded to respective states and/or information provided by client is entered into the appropriate state web filing format. Note, if the filing is online Cornerstone enters the information but requires client to review and submit • Regular appropriate follow-up with the state-Address any filing questions and concerns if applicable • Confirm approval via regulators’ state website and/or receive renewed certificate • Forward to the client the approval information and upload approved certificate into our client Portal • Update Renewal Dept. internal system with subsequent Expiration & Reporting Due Dates

12. Compasass Online™ is connected to Cornerstone’s first-in-class state licensing repository, giving their clients unprecedented access to a dashboard displaying the most relevant licensing information. Cornerstone Support’s Client Portal

13. Thank you!

14. Licensing Panel – NACARA 2019 Services & Value September 16, 2019 Tim Lange Founder & Chief Operating Officer

15. Why Are We Here? • Who is in the room? • “Services & Value”

16. APPROVED History • Buckley LLP • Vision • Mission • Core Values • People

17. APPROVED Vision and Mission • Vision • APPROVED will be recognized as the leader in financial services licensing by providing a personalized, cost-certain experience built on superior knowledge, innovative tools and methods, and efficiency. We’re here to make licensing better. • Mission • APPROVED is a licensing service for financial services and fintech companies. Our approach is informed and unique, and employs proprietary technology to make the approval and compliance process smarter, and more predictable, with less friction for clients and regulators alike. In addition to our legal and industry knowledge, we bring a fierce commitment to combining the best people, processes, and technology. • Our team has decades of legal and licensing experience and has successfully represented the full spectrum of financial services and fintech companies. We combine the economies of a licensing company, the knowledge and resources of a preeminent financial services law firm, and the energy and ingenuity of a technology company in offering something new and unique: APPROVED.

18. APPROVED Core Values • Character Counts. We respect others and display humble confidence. We are determined, fair, and honest. • Empower People. We depend on one another to produce high-quality work. We know through experience the importance of diversity. We communicate openly to foster personal and professional growth in a welcoming and inclusive environment. • Pride in Work.We demonstrate excellence in client service by producing accurate, organized, and thorough work. We embrace accountability and ask informed questions to better serve our clients. • Relationships Matter.We value and promote relationships among our team, our clients, regulators, and other stakeholders. We build on the experience, reputation, and trust our team has earned to guide our clients through the regulatory approval process and support them in developing productive relationships with regulators. We are professional and responsive, and are confident and approachable in our interactions with others. • Never Settle.We offer unmatched service and improve upon excellence. We champion a solution-oriented culture that encourages innovative thinking and implements the best ideas in service of our clients. We view technology as a tool to support our people, improve quality, drive efficiency, and expedite the approval process. We reflect upon past performance to improve future results.

19. APPROVED Process • What We Do • A Smarter Process • A Broader Perspective • A Better Experience • What We Don’t Do

20. APPROVED Process • New License Applications • Company • Branch • Individuals • Industries • License Amendments • Change of Control • Relocation • Name Changes • License Renewal and periodic reporting

21. APPROVED Process • Licensing Analysis & Strategy • State by state • Any Exemptions? • Performed by Buckley attorneys • Create questionnaire and plan • Application Execution • Compilation • Follow-up • Move to renewal/maintenance

22. APPROVED Process • Information Collection (e.g., generation of corporate and personal information questionnaires to identify all information, documentation, and action items for the identified license applications) • Application Drafting and Compilation (e.g., initiating any online accounts, drafting hard copy application forms, providing instructions for corporate and personal filings) • Application Submission (e.g., drafting cover letters, compiling applications, quality control review of materials returned, instructions for submission, and submission of materials to our specific regulator contacts) • Post-Submission (e.g., monitoring for deficiencies, responding to deficiencies, working with client to obtain approvals) • Renewal and Maintenance (e.g. monitoring for annual requirements and drafting, compiling and submitting relevant notices to financial services regulators) • Project Management (e.g., host weekly calls and circulate a weekly status chart)

23. APPROVED Technology • Mogy! • What is it? • Licensing Obligations • Comprehensive yet tailored • Built by industry professionals

24. Client Partner • Compliance Culture • Avoiding the pitfalls • The Great Unknown

25. Agency Interaction • How can we help you get a better application, renewal, report, etc.? • Responsive/active monitoring for clients on changes within an agency or a regulatory posture • Client direct communications with regulator • Debt collection in particular can be difficult for clients – how can we better serve them and you?

26. Contact Info Tim Lange Founder & Chief Operating Officer tim@approvedlicensing.com 312-924-9826