Title 13, Debtor and Creditor Relationship

An applicant, licensee, or other person subject to the provisions of this chapter shall comply with requests for information, documents, or other requests from the department of financial institutions within the time specified in the request, which must be a minimum of ten days, …

To promote more effective regulation and reduce regulatory burden through supervisory information sharing, the commissioner or commissioner's designee may furnish information to or receive information from a nationwide multistate licensing system for the purpose of regulation of …

1. Before disbursing funds under a deferred presentment service transaction, a licensee shall provide to the customer a clear and conspicuous printed notice indicating: a. That a deferred presentment service transaction is not intended to meet long-term financial needs. b. That t…

If the commissioner determines an applicant is not qualified to receive a license, the commissioner shall notify the applicant in writing stating that the application is denied and stating the basis for denial. If the commissioner denies an application, or if the commissioner fai…

1. The commissioner may issue and serve upon any licensee an order suspending or revoking a license if the commissioner finds that the licensee or any principal of the licensee has been convicted of a felony or that the licensee knowingly or through lack of due care: a. Failed to…

1. The commissioner of financial institutions may issue and serve upon any current or former deferred presentment service provider officer or employee and upon the licensee involved an order stating: a. That the current or former officer or employee is willfully engaging or has w…

Except as otherwise provided in this chapter, any person who willfully provides deferred presentment services without a license is guilty of a class C felony and any person who violates any other provisions of this chapter or any rule adopted to implement this chapter is guilty o…

Except for provisions of chapter 6-08.1 which are inconsistent with this chapter, chapter 6-08.1 applies to all persons licensed under this chapter.

The purpose of this chapter is to protect consumers seeking mortgage loans and to ensure that the mortgage lending industry is operating without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators.

For purposes of this chapter: 1. "Depository institution" has the same meaning as is currently defined under section 3 of the Federal Deposit Insurance Act and includes any credit union. 2. "Federal banking agencies" means the board of governors of the federal reserve system, the…

1. An individual, unless specifically exempted from this chapter under subsection 2, shall not engage in the business of a mortgage loan originator with respect to any dwelling located in this state without first obtaining and maintaining annually a license under this chapter. Ea…

1. Applicants for a license shall apply in a form as prescribed by the commissioner. Each such form must contain content as set forth by rule, regulation, instruction, or procedure of the commissioner and may be changed or updated as necessary by the commissioner in order to carr…

The commissioner shall not issue a mortgage loan originator license unless the commissioner makes at a minimum the following findings: 1. The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that a subsequent formal vacat…

1. To meet the prelicensing education requirement referred to in subsection 4 of section 13-10-05, a person shall complete at least twenty hours of education approved in accordance with subsection 2, which must include at least: a. Three hours of federal law and regulations; b. T…

1. In order to meet the written test requirement referred to in subsection 5 of section 13-10-05, an individual must pass, in accordance with the standards established under this subsection, a qualified written test developed by the nationwide mortgage licensing system and regist…

1. The minimum standards for license renewal for mortgage loan originators include the following: a. The mortgage loan originator continues to meet the minimum standards for license issuance under section 13-10-05. b. The mortgage loan originator has satisfied the annual continui…

1. To meet the annual continuing education requirements referred to in section 13-10-08, a licensed mortgage loan originator shall complete at least eight hours of education approved in accordance with subsection 2, which must include at least: a. Three hours of federal law and r…

In addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage loan originators to be licensed and registered through the nationwide mortgage licensing system and registry. To carry out this requirement, the commissioner may particip…

The commissioner shall establish a process by which mortgage loan originators may challenge information entered into the nationwide mortgage licensing system and registry by the commissioner.

1. To ensure the effective supervision and enforcement of this chapter the commissioner may: a. Deny, suspend, revoke, condition, or decline to renew a license for a violation of this chapter, rules or regulations issued under this chapter or order or directive entered under this…

1. Each mortgage loan originator must be covered by a surety bond in accordance with this section. If the mortgage loan originator is an employee or exclusive agent of a person subject to this chapter, the surety bond of such person subject to this chapter may be used in lieu of …

A minimum net worth must be continuously maintained for mortgage loan originators in accordance with this section. If the mortgage loan originator is an employee or exclusive agent of a person subject to this chapter, the net worth of such person subject to this chapter may be us…

To promote more effective regulation and reduce regulatory burden through supervisory information sharing: 1. Except as otherwise provided in Public Law 110-289, section 1512, the requirements under any federal law or chapter 44-04 regarding the privacy or confidentiality of any …

In addition to any authority allowed under this chapter, the commissioner may conduct investigations and examinations as follows: 1. For purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or spec…

It is a violation of this chapter for a person or individual subject to this chapter to: 1. Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; 2. Engage in any unfair or deceptive practice toward any …

Each mortgage licensee shall submit to the nationwide mortgage licensing system and registry reports of condition, which shall be in such form and shall contain such information as the nationwide mortgage licensing system and registry may require.

Notwithstanding state privacy law, the commissioner is required to report regularly violations of this chapter, as well as enforcement actions and other relevant information, to the nationwide mortgage licensing system and registry subject to the provisions contained in section 1…

Nonfederally insured credit unions which employ loan originators, as defined in Public Law 110-289, title V, the S.A.F.E. Act, shall register such employees with the nationwide mortgage licensing system and registry by furnishing the information concerning the employees' identity…

The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulatio…

For the purposes of this chapter: 1. "Affiliate": a. With respect to an individual, means: (1) The spouse of the individual; (2) A sibling of the individual or the spouse of a sibling; (3) An individual or the spouse of an individual who is a lineal ancestor or lineal descendant …

It is unlawful for any person to act as a debt-settlement provider except as authorized by this chapter and without first having obtained a license under this chapter. A person that engages in debt settlement is deemed to engage in debt settlement in this state if the debtor resi…

1. Every application for a debt-settlement provider license, or for a renewal thereof, must be made in the form prescribed by the commissioner and must contain any information which the commissioner determines necessary and proper. The commissioner may require any applicant to pr…

The application for license must be in writing, under oath, and in the form prescribed by the commissioner. The application must give the location where the business is to be conducted and must contain any further information the commissioner requires, including the names and add…

1. Upon the filing of the application, the approval of the bond, and the payment of the specified fees, the commissioner may issue a license if the commissioner finds all of the following: a. The financial responsibility, experience, character, and general fitness of the applican…

All licenses required under this chapter expire on December thirty-first of each year and may be renewed. Renewals are effective the succeeding January first. Applications for renewal must be submitted at least thirty days before the expiration of the license and must be accompan…

An applicant or licensed provider shall notify the commissioner within ten days after a change in the information provided within the application.

1. Every licensee shall maintain records in conformity with generally accepted accounting principles and practices in a manner that will enable the commissioner to determine whether the licensee is complying with this chapter. The records of a licensee may be maintained electroni…

Any complete application for a license must be approved or denied within sixty days after the filing of the complete application with the commissioner.

1. If the commissioner has reason to believe that grounds for revocation of a license exist, the commissioner may notify the licensee with a notice of hearing stating the contemplated action and in general the grounds thereof and setting the time and place for a hearing thereon. …

1. The commissioner may issue and serve upon a debt-settlement provider officer or employee, and upon the licensee involved, a complaint stating the basis for the commissioner's belief that the officer or employee is willfully engaging or has willfully engaged in any of the follo…

1. A debt-settlement provider may not represent, expressly or by implication, any results or outcomes of its debt-settlement services in any advertising, marketing, or other communication to consumers unless the debt-settlement provider possesses substantiation for the representa…

1. Upon request, each debt-settlement provider shall furnish to the commissioner a copy of the contract entered between the debt-settlement provider and the debtor. The debt-settlement provider shall furnish the debtor with a copy of the written contract at the time of execution …

1. All funds received by a debt-settlement provider or the provider's agent from and for the purpose of paying bills, invoices, or accounts of a debtor constitute trust funds owned by and belonging to the debtor from whom the funds were received. All such funds received by the de…

A provider shall act in good faith in all matters under this chapter.

A provider that is required to be registered under this chapter shall maintain a toll-free communication system, staffed at a level that reasonably permits an individual to speak to a certified counselor or customer service representative, as appropriate, during ordinary business…

1. Before the consumer signs a contract, the debt-settlement provider shall provide an oral and written notice to the consumer that clearly and conspicuously discloses all of the following: a. Debt-settlement services may not be suitable for all consumers. b. Using a debt-settlem…