District of Columbia Administrative Code

304 NOTICE OF INTENT TO ISSUE ORDERS TO DENY, SUSPEND, REVOKE, FINE, REQUIRE RESTITUTION, AND SUMMARY AND PERMANENT CEASE AND DESIST ORDERS 304.1 A formal disciplinary action shall commence on the date the Department issues a notice of intent to issue an order to deny, suspend, r…

305 RESERVED SOURCE: As amended by final rulemaking published at 49 DCR 9285 (October 11, 2002).

306 RESERVED SOURCE: As amended by final rulemaking published at 49 DCR 9285 (October 11, 2002).

307 RESERVED SOURCE: As amended by final rulemaking published at 49 DCR 9285 (October 11, 2002).

308 CONDUCT OF HEARINGS 308.1 The Commissioner shall preside at all hearings unless the Commissioner has delegated his or her authority to conduct the hearing to a hearing officer in accordance with these rules. 308.2 All hearings shall be open to the public. The Commissioner, fo…

309 APPEARANCE AT PUBLIC HEARING 309.1 All persons present at a hearing shall conduct themselves in a manner consistent with the standards of decorum commonly observed in the District of Columbia courts. The Commissioner may issue orders appropriate to maintain order, including t…

310 FAILURE TO APPEAR 310.1 If a party fails to appear at the hearing, either personally or through counsel, the Commissioner may proceed to hold the hearing in that party's absence. 310.2 The Commissioner may also hold the absent party in default and may issue a proposed or fina…

311 PREHEARING CONFERENCES 311.1 The Commissioner may require parties to appear at a specified date, time, and place for a pre-hearing conference for the purpose of addressing the following matters: (a) Simplification of issues; (b) Admissions or stipulations of fact; (c) Request…

312 RECORD OF PROCEEDINGS 312.1 The Department shall cause all oral proceedings, including testimony, to be recorded by a stenographer or by tape recorder or other device. The recording of the proceedings, which need not be transcribed, shall be maintained in the custody of the D…

313 MOTIONS AND OTHER PLEADINGS: COMMUNICATIONS WITH THE COMMISSIONER 313.1 Except by leave of the Commissioner during a hearing, a party seeking an order or other relief or action from the Commissioner regarding a pending matter that is the subject of public hearing, shall file …

314 SERVICE OF PLEADINGS 314.1 Written motions and all other pleadings shall be served on all parties. 314.2 When filed, these pleadings shall be accompanied by proof of service upon all parties. Proof of service of any pleading shall be by certificate of service, affidavit or af…

315 EX PARTE COMMUNICATIONS 315.1 From the start of the proceeding until the rendering of a final decision, no person may communicate ex parte with the Commissioner, or designated hearing officer, regarding the merits of the proceeding. 315.2 The Commissioner shall not be prohibi…

316 POST-HEARING PROCEDURES 316.1 If the matter is heard before a hearing officer, the hearing officer shall serve proposed findings of fact, proposed conclusions of law, and a proposed order to on all parties and the Commissioner within 20 days of the close of the hearing to the…

317 APPEAL RIGHTS 317.1 Judicial review of final order of the Commissioner shall be by petition to the District of Columbia Court of Appeals. SOURCE: As amended by final rulemaking published at 49 DCR 9285 (October 11, 2002).

318 SEVERABILITY 318.1 If any section or portion of a section of these rules, or the applicability thereof to any person or circumstance is held invalid by any court of competent jurisdiction, the remainder of these rules, or the applicability thereof to other persons or circumst…

399 DEFINITIONS 399.1 When used in this chapter, the following words and terms shall have the meanings ascribed: Commissioner - means the Commissioner of the Department of Insurance, Securities and Banking or designated hearing officer. District - means the District of Columbia. …

100 PURPOSE 100.1 The purpose of these rules shall be as follows: (a) To provide for the organizing, chartering, and regulating of financial institutions organized to do business in the District of Columbia and to facilitate the expansion of financial services for District reside…

101 SCOPE 101.1 These rules shall govern the chartering, licensing and granting of authorization to do business for: (a) Banks, trust companies, or other financial institutions including District branches and agencies of foreign banks seeking to establish in the District, pursuan…

1100 SCOPE AND APPLICABILITY 1100.1 This chapter shall apply to any person who engages in business as a mortgage lender, mortgage broker, or mortgage loan originator in the District or who issues, makes, services, brokers, or originates a mortgage loan as defined in the Act. SOUR…

1101 EXEMPTIONS 1101.1 The provisions of this chapter shall not apply to any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of the United States, any state or territory of the United States, or the Distric…

1102 GENERAL LICENSING REQUIREMENTS 1102.1 An applicant for a license to engage in business as a mortgage lender shall file a mortgage lender license application with the Department. 1102.2 An applicant for a license to engage in business as a mortgage broker shall file a mortgag…

1103 TERMINATION AND REASSIGNMENT OF MORTGAGE LOAN ORIGINATOR 1103.1 A mortgage loan originator shall disclose the mortgage loan originator’s license number to all clients and residential mortgage loan applicants in writing at the time a fee is paid or a mortgage loan application…

1104 BACKGROUND CHECKS 1104.1 To assist the Commissioner in his determination for licensure, an applicant for an original mortgage loan originator’s license shall furnish the Department or its designee information concerning the applicant’s identity, including, but not limited to…

1105 PRE-LICENSING EDUCATION REQUIREMENTS FOR MORTGAGE LOAN ORIGINATORS 1105.1 In order to meet the pre-licensing education requirements for a mortgage loan originator, an applicant shall complete at least twenty (20) hours of pre-licensing education approved in accordance with s…

1106 TESTING 1106.1 In order to meet the written test requirement an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test prov…

1107 EVIDENCE OF FINANCIAL RESPONSIBILITY 1107.1 For purposes of this section, references in the Nationwide Mortgage Licensing System and Registry to the terms “net worth” and “capital” are interchangeable 1107.2 A mortgage lender shall demonstrate and maintain capital of not les…

1108 CREDIT REPORT 1108.1 An applicant for a mortgage loan originator’s license and each officer, director, partner, and owner of a controlling interest in an applicant for a mortgage lender or mortgage broker license shall provide authorization for the Department to obtain a cre…

1109 SURETY BOND 1109. An applicant for a mortgage lender, mortgage broker or mortgage dual authority license shall file a surety bond with each original application and any renewal application. 1109.2 The surety bond shall: (a) Run to the Commissioner for the benefit of the Dist…

1110 FINANCIAL STATEMENTS 1110.1 An applicant for a mortgage lender, mortgage broker, or mortgage dual authority license shall submit financial statements prepared in accordance with generally accepted accounting principles. 1110.2 The financial statements shall include, but not …

1111 RENEWAL OF LICENSE 1111.1 In order to renew a license, a licensee shall: File all required forms and fees that are to be filed directly with the Department, as noted on the NMLS, by no later than October 15 of a given year. If October 15 falls on a Saturday, Sunday, or legal…

1112 CONTINUING EDUCATION REQUIREMENTS FOR MORTGAGE LOAN ORIGINATORS 1112.1 In order to meet the continuing education requirements, a licensed mortgage loan originator shall complete, annually at least eight (8) hours of education, at least sixty (60) days prior to expiration of …

1113 NOTIFICATION OF SIGNIFICANT EVENTS BY LICENSEE 1113.1 A mortgage lender, mortgage broker, mortgage dual authority licensee, or mortgage loan originator licensed under the Act shall notify the Commissioner in writing within five (5) business days of the occurrence of any fact…

1114 ANNUAL REPORTING REQUIREMENTS 1114.1 A mortgage lender, mortgage broker, and mortgage dual authority licensee shall submit an annual report to the Department on a form prescribed by the Commissioner. 1114.2 A mortgage loan originator shall file annually, a call report with t…

1115 ANNUAL ASSESSMENTS 1115.1 Each licensed mortgage lender, mortgage broker, or mortgage dual authority licensee who held a license during the prior licensing period shall be subject to an assessment as prescribed in Appendix A. The assessment shall be determined to be the sum …

1116 MORTGAGE LOAN APPLICATION AND APPROVAL PROCESS 1116.1 Each application for a proposed mortgage loan must be signed and dated by each borrower on each page of the mortgage loan application and shall contain, or have attached to the application, at a minimum, the following inf…

1117 WRITTEN COMMITMENTS, FINANCING AGREEMENTS, AND LOCK-IN AGREEMENTS 1117.1 A written commitment shall include the following: (a) If available, identification of the real property intended to secure the mortgage loan; (b) The principal amount and maturity term of the mortgage l…

1118 MORTGAGE LENDER AND MORTGAGE BROKER FEES 1118.1 For purposes of this section, a fee shall include the rate of interest, annual percentage rate, finance charge, points, yield spread premium, or any other monetary costs charged to a borrower, or paid on behalf of the borrower,…

1119 APPRAISAL 1119.1 A mortgage loan originator, mortgage lender, a mortgage broker, or a mortgage dual authority licensee shall not use an appraisal conducted for real property located in the District of Columbia, which will be used to secure a mortgage loan, unless the apprais…

1120 RECORDKEEPING 1120.1 For each mortgage loan brokered or originated, a licensee shall retain a file of all documents, invoices and/or other obligations for at least three (3) years after final payment is made on any mortgage loan or after the mortgage loan is sold, whichever …

1121 ESCROW ACCOUNTS 1121.1 A borrower may elect not to make escrow payments to the mortgage lender when the borrower has made a down payment equaling twenty percent (20%) or more of the total purchase price of the property or has an equity interest in the property equal to, or g…

1122 APPLICABILITY OF FEDERAL LAW 1122.1 Unless otherwise stated in the Act, a licensee or person required to be licensed under the Act shall comply with applicable federal law and any rule, regulation, order, or interpretation promulgated or issued pursuant to the applicable fed…

1123 EXAMINATIONS AND INVESTIGATIONS 1123.1 To defray the costs of examination, every mortgage lender, mortgage broker, and mortgage loan originator required to be licensed under this chapter shall be subject to an examination fee as prescribed in Appendix A. 1123.2 A licensee wh…

1124 COMPLAINTS 1124.1 Each licensee shall file with the Department a written notice designating a contact person to serve as the point of contact for complaints filed with the Department against the licensee. The notice shall include the designee’s name, title, e-mail address, t…

1125 REVOCATION AND SUSPENSION OF LICENSE 1125.1 A person to whom an order is issued pursuant to sections 18 and 19 of the Act shall be given reasonable notice and the opportunity for a hearing. The order shall issue and be served, either by hand or by United States certified mai…

1126 ADMINISTRATIVE PENALTIES 1126.1 Any licensee that fails to file an annual report at the time prescribed by section 11 of the Act, shall be assessed a late penalty in the amount of one hundred dollars ($100) per business day following the date the annual report is due until t…

1199 DEFINITIONS 1199.1 For the purpose of this chapter, the following terms have the meaning ascribed: Applicant - a person filing an application for a license, a renewal license, or a change in control under the Act, for an individual office location. Commissioner - the Commiss…

1800 SCOPE AND APPLICABILITY 1800.1 Except as provided in § 1800.2, this chapter shall apply to any person who operates an automated teller machine or point of sale terminal in the District of Columbia. 1800.2 This chapter shall not apply to any commercial bank, savings bank, sav…

1801 REGISTRATION OF AUTOMATED TELLER MACHINES 1801.1 No person shall operate an automated teller machine unless a registration application is filed and approved by the Commissioner. 1801.2 A registration application shall be filed on a registration form as prescribed by the Comm…

1802 RENEWAL OF REGISTRATION APPLICATION 1802.1 In order to renew a registration required pursuant to this chapter, an operator shall file a renewal registration application, on a form prescribed by the Commissioner, for the operation of an automated teller machine not later than…

1803 REVOCATION AND SUSPENSION OF REGISTRATION 1803.1 Except as provided in § 1803.2, the Commissioner may revoke or suspend the registration of an operator upon a finding that the operator: (a) Violated any applicable District or federal law, rule or regulation; (b) Made a mater…