Title 25, Professions And Occupations

[PART I. GENERAL PROVISIONS] §454F-1 Definitions. In this chapter, unless the context or subject matter otherwise requires: "Advertisement" or "advertising" means: "Applicant" means a person applying for the issuance of a license or a renewal of a license under this chapter. "Bor…

§454F-1.5 Registration with NMLS required. (a) All mortgage loan originators, mortgage loan originator companies, exempt registered mortgage loan originators, exempt sponsoring mortgage loan originator companies, nonprofit organizations, and every other person in this State that …

§454F-1.6 Presumption of control. An individual is presumed to control a mortgage loan originator company if that individual is:

§454F-1.7 Duties of a qualified individual and branch manager. (a) Every mortgage loan originator company licensed under this chapter and every exempt sponsoring mortgage loan originator company registered with NMLS under this chapter shall designate a qualified individual to ful…

§454F-1.8 Sponsorship by mortgage loan originator company, exempt sponsoring mortgage loan originator company, or nonprofit organization. All mortgage loan originators shall be sponsored by a mortgage loan originator company, an exempt sponsoring mortgage loan originator company,…

§454F-10 Authority to require license. In addition to any other duties imposed upon the commissioner, the commissioner shall require mortgage loan originators and mortgage loan originator companies to be licensed and registered through NMLS. The commissioner is authorized to part…

§454F-10.5 Authorized places of business; designation of qualified individuals and branch managers; branch offices; principal office; relocation. (a) Every mortgage loan originator company licensed under this chapter and every exempt sponsoring mortgage loan originator company sh…

[§454F-10.6] Voluntary cessation of operation; surrender of license. (a) Subject to the approval of the commissioner, a licensee may voluntarily cease activity for which a license to operate has been issued under this chapter by delivering to the commissioner a written notice of …

§454F-10.7 Change in control of a licensee; fees. (a) A licensee shall submit to the commissioner an application requesting approval of a proposed change of control of the licensee, accompanied by a nonrefundable application fee of $500, payable to the division. (b) The commissio…

§454F-11 NMLS registry information; challenge process. The commissioner shall establish a process by rule pursuant to chapter 91 whereby a licensee may challenge information entered into NMLS by the commissioner. [L Sp 2009, c 32, pt of §2; am L 2010, c 84, §18; am L 2013, c 168,…

§454F-12 Enforcement authorities; violations; penalties. (a) To ensure the effective supervision and enforcement of this chapter, the commissioner may, pursuant to chapter 91: (b) The commissioner may impose an administrative fine on a licensee or person subject to this chapter i…

§454F-14 Confidentiality. (a) Except as otherwise provided in Public Law 110-289, section 1512, the requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to NMLS, and any privilege arising under federal or sta…

§454F-15 Investigation and examination authority. (a) In addition to any other authority under this chapter, the commissioner shall have the authority to conduct investigations and examinations. The commissioner may access, receive, and use any books, accounts, records, files, do…

§454F-16 Mortgage call reports. Each licensee and exempt sponsoring mortgage loan originator company, as may be required by title 12 United States Code sections 5101 to 5116, shall submit quarterly to NMLS reports of condition, using the form entitled "FINANCIAL CONDITION" or "RE…

§454F-17 Prohibited practices. It shall be a violation of this chapter for a licensee or person subject to this chapter to:

§454F-18 Powers of commissioner. (a) The commissioner may adopt rules pursuant to chapter 91 as the commissioner deems necessary for the administration of this chapter. (b) In addition to any other powers provided by law, the commissioner shall have the authority to:

§454F-19 Unique identifier shown. The unique identifier of any person originating a residential mortgage loan, except a person who is exempt from this chapter, shall be clearly shown on all residential mortgage loan application forms, solicitations, and advertisements, including …

§454F-2 Exemptions. This chapter shall not apply to the following:

§454F-2.5 Exempt sponsoring mortgage loan originator company; registration. Any person exempt from the licensing provisions of this chapter may register with NMLS for the purpose of sponsoring a mortgage loan originator required to be licensed by this chapter. [L 2011, c 194, pt …

§454F-20 Report to NMLS. Notwithstanding any other law to the contrary, the commissioner is required to regularly report violations of this chapter, as well as enforcement actions and other relevant information, to NMLS subject to the confidentiality provisions contained in secti…

§454F-22 Mortgage loan originator, mortgage loan originator company, exempt sponsoring mortgage loan originator company, and nonprofit organization fees. (a) Except as provided in subsection (b), a mortgage loan originator shall pay the following fees to obtain and maintain a val…

§454F-23 Payment of fees. All fees collected pursuant to section 454F-22, administrative fines, and other charges collected pursuant to this chapter, except fees designated for deposit into the mortgage loan recovery fund shall be deposited into the compliance resolution fund est…

§454F-24 Limited exemption for mortgage loan originators employed by mortgage servicers. An employee who performs mortgage loan originator activities for a mortgage servicer is exempt from registration and licensure as a mortgage loan originator; provided that:

§454F-25 Nonprofit organizations; mortgage loan originators. (a) An employee who performs mortgage loan originator activities for a nonprofit organization is exempt from registration and licensure as a mortgage loan originator; provided that: (b) The commissioner shall periodical…

§454F-3 Requirement of licensure. (a) Effective January 1, 2011, or such later date approved by the United States Department of Housing and Urban Development pursuant to the authority granted under Public Law 110-289, section 1508(e), title 12 United States Code section 5107(e), …

§454F-4 License and registration; application; issuance. (a) Applicants for a license shall apply in a form as prescribed by NMLS or by the commissioner. (b) To fulfill the purposes of this chapter, the commissioner may enter into agreements or contracts with NMLS or other entiti…

§454F-4.5 Automatic secondary review of license application. (a) For each application that was determined on initial review to fail to meet the criteria for licensure, the commissioner shall provide a secondary level of review of the application which shall include the: (b) The c…

[PART II. MORTGAGE LOAN RECOVERY FUND] §454F-41 Mortgage loan recovery fund; use of fund; fees. (a) The commissioner shall establish and maintain a fund that shall be known as the mortgage loan recovery fund, from which any person aggrieved by an act, representation, transaction,…

§454F-42 Statute of limitation; recovery from fund. (a) No action for a judgment that subsequently results in an order for collection from the mortgage loan recovery fund shall be commenced later than six years from the accrual of the cause of action. When any aggrieved person co…

[§454F-43] Management of fund. (a) The sums received by the division pursuant to section 454F-41 for deposit into the mortgage loan recovery fund shall be held by the commissioner or the commissioner's designee to carry out the purpose of the mortgage loan recovery fund. These fu…

[§454F-44] Standing. The commissioner shall have standing to intervene in and defend any action to recover from the mortgage loan recovery fund, including by entering an appearance, filing an answer, appearing at court hearings, and taking any recourse through appropriate methods…

[§454F-45] Subrogation of rights. When, pursuant to court order, the commissioner has paid any sum to a judgment creditor from the mortgage loan recovery fund, the commissioner shall be subrogated to all of the rights of the judgment creditor. The judgment creditor shall assign a…

[§454F-46] Waiver of rights. The failure of an aggrieved person to comply with sections 454F-41 and 454F-42 shall constitute a waiver of the rights contained in those sections. [L 2010, c 84, pt of §3]

[§454F-47] Disciplinary action against licensee. No provision of this chapter relating to the mortgage loan recovery fund shall limit the authority of the commissioner to take disciplinary action against any licensee for a violation of this chapter or of the rules and orders of t…

§454F-5 Issuance of license. (a) The commissioner shall not issue a license pursuant to this chapter unless the commissioner makes at a minimum the following findings: (b) The applicant, or in the case of an applicant that is not an individual, each of the applicant's control per…

[PART III.] Transitional Authority [§454F-51] Purpose. The purpose of this part is to implement section 106 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, P.L. 115-174. [L 2019, c 74, pt of §1]

[§454F-52] Employment transition of loan originators. In anticipation of satisfying all licensure requirements set out in part I, an individual shall be deemed to have temporary authority to act as a mortgage loan originator in this State as provided by and subject to the require…

[§454F-53] Definitions. In this part, unless the context or subject matter otherwise requires: "Depository institution" has the same meaning as in title 12 United States Code section 5102. "Federal banking agency" has the same meaning as in title 12 United States Code section 510…

[§454F-54] Employment transition of loan originators. (a) Temporary authority to originate loans for loan originators moving from a depository institution to a non-depository institution shall be available as follows: (b) Temporary authority to originate loans shall be available …

§454F-6 Pre-licensing and re-licensing; education of mortgage loan originators. (a) An applicant for licensure as a mortgage loan originator shall complete at least twenty hours of pre-licensing education approved in accordance with subsection (b) that includes: Upon completion o…

§454F-7 Testing of mortgage loan originators. (a) To meet the written test requirement in section 454F-5, an applicant for licensure as a mortgage loan originator shall pass, in accordance with the standards established under this section, a qualified written test developed by NM…

§454F-8 Standards for license renewal. (a) The minimum standards for license renewal for mortgage loan originators shall include the following: (b) The minimum standards for license renewal for mortgage loan originator companies shall include the following: (c) The license of a m…

[§454F-8.5] Reinstatement of expired licenses. (a) A license issued pursuant to this chapter that expires due to failure to satisfy the minimum standards for renewal may be reinstated if the licensee meets the following requirements:

§454F-9 Continuing education; mortgage loan originators. (a) Each year, a licensed mortgage loan originator shall complete at least eight hours of education approved in accordance with subsection (b) that shall include: (b) For purposes of subsection (a), continuing education cou…