Title 26, Banks and Other Financial Institutions.

(a) Any person who violates any provision of this chapter, any rule or regulation or order issued or promulgated pursuant to this chapter, or any order of the Superintendent [Commissioner] directed to that person, shall be liable for a penalty of not more than $1,000 for each vio…

(a) The Superintendent [Commissioner] may institute an administrative cease and desist proceeding if the Superintendent [Commissioner] determines that a licensee or person required to have a license under this chapter or an authorized delegate has violated, is violating, or is ab…

(a) Any person who knowingly and willfully violates any provision of this chapter for which a penalty is not specifically provided shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not more than $5,000, or imprisoned for more than 1 year, or both. (b) An…

The Superintendent [Commissioner] is authorized to promulgate rules and regulations to implement this chapter.

Any licensee, authorized delegate, or other person who knowingly engages in business activities that are regulated under this chapter, with or without filing an application, is deemed to have consented to the jurisdiction of the courts of the District of Columbia for all actions …

Any person licensed under this chapter shall not be required to obtain a separate license to engage in cashing of checks in the District of Columbia under Chapter 3 of this title.

(a) A licensee who receives money or equivalent value for a money transmission shall provide an itemized receipt to the customer that clearly states the amount of money or the equivalent value presented by the customer for the money transmission and the fees charged by the money …

For the purposes of this chapter, the term: (1) “Borrower” means a person who submits an application for a loan secured by a first or subordinate mortgage or deed of trust on a single to 4-family home. (1A) “Clerical tasks” means the receipt, collection, and distribution of infor…

The provisions of this chapter shall not apply to: (1) 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 District, and any other f…

(a)(1) No person shall engage in business as a mortgage loan originator, loan officer, mortgage lender, mortgage broker, or any permissible combination thereof, or hold himself out to the public to be a mortgage loan originator, loan officer, mortgage lender, mortgage broker, or …

(a) When an applicant for a license files the application and bond and pays the fees required by this chapter, the Superintendent [Commissioner] shall investigate to determine if the applicant meets the requirements of this chapter. The Superintendent [Commissioner] shall make su…

(a) Except as provided in this section, no person shall acquire directly or indirectly 25% or more of the voting shares of a corporation or 25% of the ownership of any other entity licensed to conduct business under this chapter unless such person first: (1) Files an application …

(a)(1) If an applicant does not meet the requirements of § 26-1103, the Superintendent [Commissioner] shall: (A) Immediately notify the applicant in writing of this fact; (B) Return the bond filed under § 26-1103; and (C) Refund the license fee. (2) The Superintendent [Commission…

(a)(1) A license issued under this chapter shall expire on a date to be determined by the Superintendent [Commissioner]; provided, that the initial term of the license shall be not less than 180 days, or greater than 18 months, after the effective date of the license. A license m…

(a) A licensee may not change the place of business for which a license is issued unless the licensee: (1) Notifies the Superintendent [Commissioner] in writing of the proposed change; and (2) Receives the written consent of the Superintendent [Commissioner]. (b) The application …

(a) Each licensee shall keep and make available to the Superintendent [Commissioner] at the licensee’s place of business any books and records that the Superintendent [Commissioner], by rule or regulation, requires to enable the Superintendent [Commissioner] to enforce this chapt…

(a) Each mortgage lender or mortgage broker required to be licensed under this chapter shall annually, on or before March 31, file a written report with the Superintendent [Commissioner] containing such information as the Superintendent [Commissioner] may require concerning the l…

(a) A licensee may surrender a license by sending to the Superintendent [Commissioner] the license and a written statement that the license is surrendered. (b) The surrender of a license does not affect any civil or criminal liability of a licensee for acts committed before the l…

(a) The Superintendent [Commissioner], or his or her designated agent, shall examine the affairs, business, premises, and records of each licensee at least once in every 3 year period and at any other time the Superintendent [Commissioner] reasonably considers necessary. (b)(1) A…

(a)(1) A licensee who offers to make or procure a loan secured by a first or subordinate mortgage or deed of trust on a single to 4-family home shall provide the borrower with a financing agreement executed by the lender. (2) The financing agreement shall provide: (A) The term an…

(a) No mortgage broker, mortgage lender, mortgage loan originator, or loan officer required to be licensed under this chapter, or person required to be licensed under this chapter, shall: (1) Obtain any agreement or instrument in which blanks are left to be filled in after execut…

(a) All moneys required by a mortgage lender to be paid by borrowers in escrow to defray future taxes or insurance premiums, or for other lawful purposes, shall be kept in accounts segregated from accounts of the mortgage lender, and shall not be commingled with other funds of th…

No mortgage lender, mortgage broker, mortgage loan originator, or loan officer required to be licensed under this chapter shall use, or cause to be published, any advertisement which: (1) Contains any false, misleading, or deceptive statement or representation; or (2) Identifies …

(a) If the Commissioner finds that the conduct of any other business conceals a violation or evasion of this chapter, any rule or regulation adopted under this chapter, or any law regulating mortgage loan lending in the District, the Commissioner may issue a written order to a li…

(a) The Superintendent [Commissioner] may suspend or revoke the license of any licensee if the licensee or any owner, director, officer, member, partner, stockholder, employee, or agent of the licensee, while acting on behalf of the licensee: (1) Makes any material misstatement i…

(a) A person to whom an order is issued pursuant to § 26-1117 or § 26-1118 shall be given reasonable notice and the opportunity for a hearing as provided in this section. Upon the issuance of any order, the Commissioner shall notify the respondent, applicant, licensee, or person …

A mortgage lender, mortgage broker, mortgage loan originator, or loan officer may not do business under any trade name that misrepresents or tends to misrepresent that the mortgage lender is: (1) A bank, trust company, or savings bank; (2) A savings and loan association; (3) A cr…

(a) To assist in the performance of the Commissioner’s duties under this chapter, the Commissioner may: (1) Share documents, materials, or other information, including confidential and privileged documents, materials, or information subject to this chapter, with other local, stat…

(a) The Commissioner shall regularly report violations of this chapter, as well as enforcement actions and other relevant information, to the NMLSR. The reports shall be subject to the provisions of § 26-1120.01. (b) Each licensee shall submit to the NMLSR reports of condition, w…

The Commissioner shall establish a process whereby licensees may challenge information entered into the NMLSR by the Commissioner.

The Superintendent [Commissioner of the Department of Insurance, Securities, and Banking] is hereby authorized to promulgate such rules and regulations as deemed necessary and appropriate to implement the provisions of this chapter in accordance with subchapter I of Chapter 5 of …

For the purposes of this chapter, the term: (1) “Annual percentage rate” means the annual percentage rate for the mortgage loan calculated according to the provisions of the Truth in Lending Act, the regulations promulgated thereunder by the Board of Governors of the Federal Rese…

(a) Nothing in subchapter II of this chapter shall be construed to apply to loans made or purchased by the Federal National Mortgage Association, Federal Home Loan Corporation, or a bank, trust company, savings and loan association, or savings bank, that is regulated and supervis…

This subchapter shall only apply to a covered loan as defined in § 26-1151.01(7)(A).

(a) A lender shall not make a covered loan if the borrower, at the time that the covered loan is closed, cannot reasonably be expected to make the scheduled payments. For purposes of making this determination: (1) The lender’s consideration shall include the ability to make any p…

A lender shall not sell any individual or group credit life, accident, health, or unemployment insurance product on a prepaid single premium basis in conjunction with a covered loan. Credit insurance sold by a lender on a basis other than a prepaid single premium shall be accompa…

If a lender refinances a loan secured by the same residential real property to the same borrower which was made 18 months or less before the covered loan is made, the same lender shall not finance, directly or indirectly, any portion of the covered loan’s origination/discount poi…

A lender shall not recommend or encourage the borrower to default on an existing loan or other debt prior to and in connection with the closing or planned closing of a covered loan that refinances all or any portion of the existing loan or other debt.

(a) A lender shall not steer, counsel, or direct any prospective borrower to accept a loan product with a risk grade less favorable than the risk grade that the borrower would qualify for based on that lender’s then current underwriting guidelines, prudently applied, considering …

A lender or its servicer shall report a borrower’s favorable payment history and information to a nationally recognized credit-reporting agency at least once every 12 months. This section shall not prevent a lender or its servicer from agreeing with the borrower not to report pay…

(a) A lender shall not pay a contractor under a home improvement contract from the proceeds of a covered loan other than by an instrument payable to the borrower or jointly payable to the borrower and the contractor or, at the election of the borrower, through a third-party escro…

A lender shall not make a covered loan that includes a provision that increases the covered loan’s interest rate upon a default. This section shall not apply to an interest rate increase in adjustable rate covered loans based on a recognized adjustable rate mortgage index and con…

A lender shall not charge and retain fees paid by the borrower in making a covered loan which are: (1) For services that are not actually performed; (2) For loan discount points which are not bona fide discount points; or (3) In violation of the Real Estate Procedures Settlement …

(a) In making a covered loan, a lender shall send to the borrower a Red Flag Warning Disclosure Notice. (b) This notice shall be received by the borrower at least 3 business days prior to closing of the loan. (c) If the loan is originated with the assistance of a mortgage broker,…

A lender shall not include in a covered loan or collect or attempt to collect any prepayment premium, fee, or charge in violation of Chapter 33 of Title 28.

A lender shall not make a covered loan that provides for a scheduled payment that is more than twice as large as the average of earlier scheduled monthly payments unless the balloon payment becomes due and payable not less than 7 years after the date of the loan closing. This sec…