Title 19, Title 19 Institutions

A document is filed when it is received by the director.

This act shall be applied and construed with a view to uniformity among states enacting it. This act shall be liberally construed to effectuate its purposes.

If a provision of this act or its application to a person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision of application. To this end the provisions of this act ar…

(a) This act applies to a franchise that is offered or sold in this state. (b) A franchise is offered for sale in this state if an offer to sell is made or accepted in this state or an offer to buy is accepted in this state. (c) An offer to sell is made in this state if the offer…

It is unlawful for any person to offer or sell a franchise unless the offer is registered under this act or is exempt from registration under § 19-28.1-6.

The following transactions are exempt from the provisions of § 19-28.1-5: (1) The offer or sale of a franchise if all of the following conditions are satisfied: (i) Either the franchisor’s most recent audited financial statements show a net worth of at least ten million dollars (…

An offer or sale of a franchise is exempted from §§ 19-28.1-5, 19-28.1-8, 19-28.1-9, and 19-28.1-13 — 19-28.1-16 if: (1) It is offered or sold to a nonresident of this state; (2) The franchise business will not be operated wholly or partly in this state; (3) The offer or sale doe…

(a) It is unlawful to sell any franchise in this state without first providing a copy of a disclosure document reflecting all material changes together with a copy of all proposed agreements relating to the sale of the franchise, unless otherwise provided in subsection (b), to th…

(a) A registration application must include the disclosure document, the filing fee, and the consent to service of process. The director may require the filing of audited financial statements examined and reported upon by an independent certified public accountant and prepared in…

This chapter shall be known and may be cited as the “Secure and Fair Enforcement Mortgage Licensing Act of 2009”.

(a) In order to meet the annual continuing education requirements referred to in § 19-14.10-9, a licensed mortgage loan originator shall complete at least (8) hours of education approved in accordance with subsection (b), which shall include at least: (1) Three (3) hours of feder…

In addition to any other duties imposed upon the director, or the director’s designee, by law, the director, or the director’s designee, shall require mortgage loan originators to be licensed and registered through the Nationwide Mortgage Licensing System and Registry. In order t…

The director, or the director’s designee, shall establish a process whereby mortgage loan originators may challenge information entered into the Nationwide Mortgage Licensing System and Registry by the director, or the director’s designee.

(a) In order to ensure the effective supervision and enforcement of this chapter, the director, or the director’s designee, may, pursuant to chapter 35 of title 42: (1) Deny, suspend, revoke, condition, or decline to renew a license for a violation of this chapter, rules or regul…

(a) Each mortgage loan originator shall be covered by a surety bond in accordance with this section. In the event that the mortgage loan originator is an employee of a lender or loan broker licensed under chapter 14 of title 19, the surety bond of such lender or loan broker as re…

In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing: (1) Except as otherwise provided in public law 110-289, § 1512 (12 U.S.C. § 5111), the requirements under any federal law, or chapter 2 of title 38 of the general l…

In addition to any authority allowed under this chapter the director, or the director’s designee, shall have the authority to conduct investigations and examinations as follows: (1) For purposes of initial licensing, license renewal, license suspension, license conditioning, lice…

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 an…

Each lender, loan broker, or mortgage loan originator 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 r…

Subject to state privacy law the director, or the director’s designee, 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 con…

The activities of mortgage loan originators and the origination or offering of financing for residential real property have a direct, valuable, and immediate impact upon Rhode Island’s consumers, Rhode Island’s economy, the neighborhoods and communities of Rhode Island, and the h…

The name and the unique identifier assigned by the Nationwide Multistate Licensing System 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 …

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.

For purposes of this chapter, the following definitions shall apply: (1) “Depository institution” has the same meaning as in 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 R…

(a) An individual, unless specifically exempted from this chapter under subsection (b), 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.…

(a) Applicants for a license shall apply in a form as prescribed by the director, or the director’s designee. Each such form shall contain content as set forth by rule, regulation, instruction, or procedure of the director, or the director’s designee, and may be changed or update…

The director, or the director’s designee, shall not approve a mortgage loan originator license unless the director. or the director’s designee. makes at a minimum the following findings: (1) The applicant has never had a mortgage loan originator license revoked in any governmenta…

(a) In order to meet the pre-licensing education requirement referred to in this chapter, a person shall complete at least twenty (20) hours of education approved in accordance with subsection (b), which shall include at least: (1) Three (3) hours of Federal law and regulations; …

(a) In order to meet the written test requirement referred to in this chapter, an individual shall pass, in accordance with the standards established under this subsection, a qualified written test developed by the Nationwide Multistate Licensing System and administered by a test…

(a) The minimum standards for license renewal for mortgage loan originators shall include the following: (1) The mortgage loan originator continues to meet the minimum standards for license issuance under § 19-14.10-6. (2) The mortgage loan originator has satisfied the annual con…

(a) No person shall act as a third-party loan servicer, directly or indirectly, for a loan to a Rhode Island borrower without first obtaining a license under this chapter from the director, or the director’s designee. (b) No license shall be required of: (1) A depository institut…

(a) All amounts paid by borrowers to a licensee subject to this chapter shall be deposited in one or more accounts maintained at a federally insured depository institution, and with respect to such funds, the licensee shall act as a fiduciary. Such account, or accounts, shall be …

The licensee shall keep, use in the licensee’s business, and make available to the director, or the director’s designee, upon request, such books, accounts, records, and data compilations as will enable the director, or director’s designee, to determine whether such licensee is c…

It is a violation of this chapter for a person 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 person. (3) Obtain property by fraud…