Arkansas Administrative Code

23 CAR § 301-1301. Scope of subpart. (a)(1) This subpart applies in all investigations, proceedings, and rulemaking conducted by the State Securities Department. (2) The purpose of this subpart is to provide guidance and direction in the procedures used by the department to formu…

23 CAR § 301-1302. Location — Contact information — Business hours. (a) All communication and inquiries shall be delivered to: State Securities Department #1 Commerce Way, Suite 402 Little Rock, Arkansas 72202. (b) The general information number for the department is (501) 324-92…

23 CAR § 301-1303. Powers of the commissioner. (a) The Securities Commissioner shall have all the powers necessary to conduct investigations and proceedings in a fair and impartial manner and to avoid unnecessary delay. (b) The powers of the commissioner include, but are not limi…

23 CAR § 301-1304. Investigations. (a) Investigations conducted pursuant to Arkansas Code § 23-39-514 are not hearings, either formal or informal, as that term is used in this section. (b) Upon sufficient evidence, the Securities Commissioner shall enter an order directing an inv…

23 CAR § 301-1305. Proceedings and hearings. (a) Governing law and procedure. All formal hearings before the Securities Commissioner shall be in accordance with the provisions of: (1) The Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq.; (2) The Arkansas Administrativ…

23 CAR § 301-1306. Pleadings and practice — Pleadings allowed. Pleadings shall include all forms of petitions, requests, complaints, answers, responses, replies, proposals, notices, applications, briefs, and filings of any nature that are placed before the Securities Commissioner…

23 CAR § 301-1307. Form. (a) The form to be followed in the filing of pleadings pursuant to this part will vary to the extent necessary to provide for the nature of the legal rights, duties, or privileges involved therein. (b) Except as otherwise provided by law or the Securities…

23 CAR § 301-1308. Motions. (a)(1) All requests for relief will be by motion. (2) Motions must be made in writing or orally if made on the record during a hearing, unless the Securities Commissioner directs that such motion be reduced to writing. (b)(1)(A) A motion must fully sta…

23 CAR § 301-1309. Briefs. (a) Briefs may be filed by a party or interested nonparty either before or during the course of a hearing or within such time as the Securities Commissioner designates. (b) Failure to file a brief shall in no way prejudice the rights of any party. (c) T…

23 CAR § 300-1310. Computations of time. (a) In computing any period of time prescribed or allowed by the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., or this part, the day of the act, event, or default after which the designated period of time begins to run is n…

23 CAR § 301-1311. Extensions of time. (a) Except as otherwise provided by law, the Securities Commissioner may, for good cause shown, extend any time limit prescribed or allowed by: (1) The Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq.; (2) This part; or (3) Any n…

23 CAR § 301-1312. Effect of filing. (a)(1) The filing with the Securities Commissioner of any pleadings, requests for no action, or interpretive opinions, or any other document shall not relieve any person of the obligation to comply with any statute, rule, or order of the commi…

23 CAR § 301-1313. Filing and service. (a) Any pleading filed by the State Securities Department staff or notice of hearing summary order issued by the Securities Commissioner for the purpose of commencing a proceeding shall be served on each respondent by personal service, regis…

23 CAR § 301-1314. Submission of information. Any information filed or submitted to the State Securities Department in connection with an application or otherwise given voluntarily to the department may, where competent and relevant, be used in any criminal prosecutions under: (1…

23 CAR § 301-1315. Hearing procedures — Notice of hearings. (a)(1) A notice of hearing shall be served upon each party. (2) This may be by hand delivery or United States Postal Service within a reasonable amount of time prior to the hearing. (3) For purposes of this section, serv…

23 CAR § 301-1317. Notice to interested parties. If it appears that the determination of the rights of parties in a proceeding will necessarily involve a determination of the substantial interests of persons who are not parties, the Securities Commissioner may enter an order requ…

23 CAR § 301-1318. Subpoenas. (a)(1) At the request of any party, the Securities Commissioner shall issue subpoenas for the attendance of witnesses at a hearing. (2) The requesting party shall specify whether the witness is also requested to bring documents and reasonably identif…

23 CAR § 301-1319. Hearing location. Unless the Securities Commissioner designates a different location, all hearings shall be held at the offices of the State Securities Department.

23 CAR § 301-1320. Consolidation and severance. (a) The Securities Commissioner may, for good cause, upon the commissioner’s own motion or upon motion by a party, consolidate separate matters that involve related questions of law or fact, or identical parties if it appears that c…

23 CAR § 301-1321. Conduct of hearing. (a) The Securities Commissioner presides at the hearing and may rule on motions, require briefs, and issue such orders as will ensure the orderly conduct of the proceedings, provided, however, any hearing officer other than the commissioner …

23 CAR § 301-1322. Order of proceedings. (a) The Securities Commissioner will conduct the hearing in the following manner: (1) The commissioner will give an opening statement, briefly describing the nature of the proceedings; (2) The parties are to be given the opportunity to pre…

23 CAR § 301-1323. Failure to request or appear at a hearing. (a) When a party fails to request a hearing within the time specified in the cease and desist order or other administrative order, the allegations against the party may be deemed admitted. (b)(1) If a party fails to ap…

23 CAR § 301-1324. Appearance, practice, and withdrawal before the commissioner. (a)(1) Any party appearing in any proceeding has the right, at the party’s own expense, to be represented by an attorney. (2) The attorney must be duly admitted to practice law in the State of Arkans…

23 CAR § 301-1325. Recording the proceeding — Transcript corrections. (a)(1) The responsibility to record the testimony heard at a hearing is borne by the State Securities Department. (2) Any party may request a copy of the transcript from the court reporter and such copy shall b…

23 CAR § 301-1326. Evidence. (a) The Securities Commissioner shall rule on the admissibility of evidence and may, when appropriate, take official notice of facts and generally recognized technical or scientific facts. (b)(1) Stipulation of facts is encouraged. (2) Parties may sti…

23 CAR § 301-1327. Orders. (a)(1) All decisions and orders of the Securities Commissioner concluding a proceeding shall be: (A) In writing; and (B) Served on all parties. (2)(A) The order will include a recitation of facts found based on testimony, other evidence presented, and r…

23 CAR § 301-1328. Right to appeal. A person who is aggrieved by the final decision of the Securities Commissioner may seek judicial review of the decision in accordance with the provisions of Arkansas Code § 23-39-515.

23 CAR § 301-1329. Challenge of information in the Nationwide Mortgage Licensing System and Registry. (a) Subject to any state or federal privacy laws, the Securities Commissioner shall report regularly on the NMLS&R any enforcement actions against a licensee or any person found …

23 CAR § 301-1330. Examinations. (a) Control access to records. (1) In making any examination authorized by the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., the Securities Commissioner may control access to any documents and records of the licensee or person unde…

23 CAR § 301-1331. Licensure of individuals — Loan officer, mortgage broker, mortgage banker, or mortgage servicer. (a) A licensee may agree in writing to allow the Securities Commissioner or the State Securities Department staff additional time after withdrawal becomes effective…

23 CAR § 301-201. Soliciting, accepting, or offering to solicit or accept application for a mortgage loan. (a)(1) Under the definition of a loan officer, Arkansas Code § 23-39-502(11)(A)(i) and (ii), and under the definition of mortgage broker, Arkansas Code § 23-39-502(15)(A) an…

23 CAR § 301-202. Negotiating or offering to negotiate the terms and conditions of mortgage loan. (a)(1) Under the definition of a loan officer, Arkansas Code § 23-39-502(11)(A)(iii), and the definition of a mortgage broker, Arkansas Code § 23-39-502(15)(C), a person may be consi…

23 CAR § 301-203. Miscellaneous. (a) Clerical or administrative tasks. (1) “Clerical and administrative tasks” or “administrative or clerical tasks” as used in Arkansas Code §§ 23-39-502(9)(B)(i), 23-39-502(9)(B)(xvi), and 23-39-502(11)(B)(i), means activities generally associate…

23 CAR § 301-301. Advisory opinions and other legal interpretations. (a) The Securities Commissioner or the commissioner’s designee may issue advisory opinions or other legal interpretations regarding the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., this part, or…

23 CAR § 301-401. Application. (a)(1) Each type of application shall be in a form provided by the NMLS&R and approved by the Securities Commissioner. (2) The application shall be: (A) Accompanied by all information required by this part or the Fair Mortgage Lending Act, Arkansas …

23 CAR § 301-402. Qualifications for doing business. (a) History. A loan officer applicant, partner, officer, director, any person occupying a similar status or performing similar functions, any managing principal, or any person directly or indirectly controlling a mortgage broke…

23 CAR § 301-403. Affiliated businesses or beneficial interests. (a)(1) If an applicant or licensee has a beneficial interest in a company that provides a service related to or in connection with the real estate procurement, settlement, or the closing of a mortgage loan, that ben…

23 CAR § 301-404. Background checks. (a) In connection with each application for the issuance of a loan officer license under the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., the Securities Commissioner shall initiate a background check. (b) The background check …

23 CAR § 301-405. Prelicensing and relicensing education of loan officers. (a) Minimum education requirements. In order to meet the prelicensing education requirement of Arkansas Code § 23-39-505(b)(3), a person applying to be licensed as a loan officer under the Fair Mortgage Le…

23 CAR § 301-406. Testing of loan officers. (a) Generally. (1) In order to meet the written test requirement of Arkansas Code § 23-39-505(b)(3), an individual applying to be a loan officer licensed under the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., shall pass…

23 CAR § 301-407. Other experience or competence requirements. (a) As used in Arkansas Code § 23-39-505(c), a person shall be considered to have acquired experience in mortgage lending if: (1) During any documented period, that person's employment income was principally derived f…

23 CAR § 301-408. Surety bonds. (a) A surety bond, as required by Arkansas Code § 23-39-505(f), for a mortgage broker or mortgage banker shall be based on the aggregate amount of residential mortgage loans secured by Arkansas residential real property that the licensee accepted o…

23 CAR § 301-409. Nontransferability of a license. (a) Any attempt to transfer or assign a license through a change of control without the prior consent of the Securities Commissioner shall: (1) Be ineffective and grounds for immediate revocation of such license; (2) Be cause for…

23 CAR § 301-501. License renewal. (a) A licensee may renew a license through the NMLS&R automatic licensing system between November 1 and December 31 of the calendar year by: (1)(A) Submitting a completed application for renewal in a form provided by the NMLS&R and approved by t…

23 CAR § 301-601. Continuing education for loan officers. (a) Generally. In order to meet the annual continuing education requirements of Arkansas Code § 23-39-507, each calendar year a licensed loan officer shall complete at least eight (8) hours of education that is approved in…

23 CAR § 301-701. Supervision. (a) Each licensee shall be supervised by the managing principal and branch manager to insure compliance with the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., and this part. (b) The managing principal or branch manager of the license…

23 CAR § 301-901. Servicing. (a) New loans. Payment instructions shall be issued in time to reasonably assure receipt by the customer at least fifteen (15) days before the first payment is due and shall include, but not be limited to, the following: (1)(A) The name, address, and …

23 CAR § 301-902. Financial privacy. (a)(1) A licensee shall institute and utilize all reasonably necessary and prudent procedures and measures to protect a loan applicant’s or borrower’s financial information and Social Security number. (2) Any unauthorized disclosure or breach …

23 CAR § 301-903. Reporting requirements. (a)(1) A mortgage broker or mortgage banker licensed at any time in Arkansas during the reporting period shall file a quarterly report containing information regarding the mortgage activity in Arkansas. (2) The quarterly report shall be f…

23 CAR § 302-1001. Uniformity of Application and Construction [Reserved].