12 U.S.C. § 1735f–10: Change of mortgagee status

Summary

Require an approved mortgage lender to tell the Secretary right away in writing when certain actions happen. These include punishments under state or federal law (like debarment, suspension, a Limited Denial of Participation, other sanctions, exclusions, or fines) against the company or key staff, and the loss of a state loan originator license under the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.).

Title 12, §1735f–10

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(a)Notification

Upon the occurrence of any action described in subsection (b), an approved mortgagee shall immediately submit to the Secretary, in writing, notification of such occurrence.

(b)Actions

The actions described in this subsection are as follows:

(1)The debarment, suspension or a Limited Denial of Participation (LDP), or application of other sanctions, other exclusions, fines, or penalties applied to the mortgagee or to any officer, partner, director, principal, manager, supervisor, loan processor, loan underwriter, or loan originator of the mortgagee pursuant to applicable provisions of State or Federal law.

(2)The revocation of a State-issued mortgage loan originator license issued pursuant to the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any other similar declaration of ineligibility pursuant to State law.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The S.A.F.E. Mortgage Licensing Act of 2008, referred to in subsec. (b)(2), is title V of div. A of Pub. L. 110–289, July 30, 2008, 122 Stat. 2810, also known as the Secure and Fair

Enforcement

for Mortgage Licensing Act of 2008, which is classified generally to chapter 51 (§ 5101 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 5101 of this title and Tables.

Prior Provisions

A prior section 1735f–10, act June 27, 1934, ch. 847, title V, § 532, as added Pub. L. 97–35, title III, § 339G, Aug. 13, 1981, 95 Stat. 418, which related to purchaser-broker arrangement payments for insurance purposes, was repealed by section 203(e) of Pub. L. 111–22.

§1735f–10 Change of Mortgagee Status