Source: http://usloanmodificationlaw.com/mississippi
Timestamp: 2018-02-22 22:09:08
Document Index: 196277510

Matched Legal Cases: ['§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81', '§ 81']

STATE OF MISSISSIPPI - USLoanModificationLaw.com
Is a license required? Yes. Mississippi statute 81-18(Attached as Schedule A)-7-1 states that “On and after July 1, 2000, no person shall transact business in this state, directly or indirectly, as a mortgage broker or mortgage lender unless he or she is licensed by the department or is a person exempted from the licensing requirements under Section 81-18-5.”
81.18-3.r states that a mortgage broker means “any person who directly or indirectly or by electronic activity solicits, places or negotiates mortgage loans for others, or offers to solicit, place or negotiate mortgage loans for others that does not close mortgage loans in the company name, does not use its own funds, or who closes mortgage loans in the name of the company, and sells, assigns or transfers the loan to others within forty-eight (48) hours of the closing.”
Advantages of becoming a licensed Mortgage Broker? None. There is no alternative.
Penalties for operating in the state without a license: 81-18-39-3 states that “Any person required to be licensed or registered under this chapter who has been deemed by the commissioner, after notice and hearing, to have violated the terms of any order properly issued by the department under this section shall be liable for a civil penalty not to exceed Three Thousand Dollars ($3,000.00). The department, in determining the amount of the penalty, shall take into account the appropriateness of the penalty relative to the size of the financial resources of the person, the good faith efforts of the person to comply with the order, the gravity of the violation, the history of previous violations by the person, and other factors or circumstances that contributed to the violation. The department may compromise, modify or refund any penalty that has been imposed under this section”
Is an advanced fee permitted? There does not appear to be any explicit prohibition on advanced fees.
Is a written agreement required? There is no explicit requirement for a written agreement, but it is implied to be required based on references to the contract between a broker and a consumer.
Other noteworthy information? This information may not be accurate. Every effort to contact a human being at the Mississippi Department of Banking and Consumer Finance has not received a response. This is based strictly off of the written statute. State regulators often interpret the written law in ways which are not obvious, or even related to the written law.
Ctrl + Click HereMississippi statute 81-18:
§ 81-18-1. Short title [Repealed effective July 1, 2012].
This chapter shall be known and cited as the Mississippi Mortgage Consumer Protection Law.
§ 81-18-3. Definitions [Repealed effective July 1, 2012].
(a) “Application” means the submission of a borrower’s financial information in anticipation of a credit decision, whether written or computer-generated. If the submission does not state or identify a specific property, the submission is an application for a prequalification and not an application for a federally related mortgage loan. The subsequent addition of an identified property to the submission converts the submission to an application for a federally related mortgage loan.
(b) “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 four-family home to be occupied by a natural person.
(c) “Branch” means a location of a company in or outside of the state that conducts business as a mortgage broker or mortgage lender. A location shall be considered a branch in any of the following:
(iii) If a consumer is received at the location or is directed to deliver any information by any means to the location in regards to Mississippi residential property.
(d) “Commissioner” means the Commissioner of the Mississippi Department of Banking and Consumer Finance.
(e) “Commitment” means a statement by a lender required to be licensed under this chapter that sets forth the terms and conditions upon which the lender is willing to make a particular mortgage loan to a particular borrower.
(f) “Company” means a licensed mortgage broker or mortgage lender under this chapter.
(g) “Control” means the direct or indirect possession of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise, and shall include “controlling,” “controlled by,” and “under common control with.”
(h) “Department” means the Department of Banking and Consumer Finance of the State of Mississippi.
(i) “Executive officer” means the chief executive officer, the president, the principal financial officer, the principal operating officer, each vice president with responsibility involving policy-making functions for a significant aspect of a person’s business, the secretary, the treasurer, or any other person performing similar managerial or supervisory functions with respect to any organization whether incorporated or unincorporated.
(j) “License” means a license to act as a mortgage broker or mortgage lender issued by the department under this chapter.
(k) “Licensee” means a person who is required to be licensed as a mortgage broker or mortgage lender under this chapter.
(l) “Loan originator” means an individual who is an employee of a mortgage broker or mortgage lender working from one licensed location, whose conduct of the mortgage business is the responsibility of the company, and whose job responsibilities include direct contact with borrowers during the loan origination process, which may include soliciting, negotiating, acquiring, arranging or making mortgage loans for others, assisting with the preparation of loan applications or other documents, quoting loan rates or terms, or providing required disclosures. This individual must work for a licensed company and work from the licensed location with the department. If the loan originator resides and works in Mississippi, then he may work from any licensed Mississippi location. However, an owner of a minimum of ten percent (10%) of a licensed company or the named principal officer on file with the department, which are registered loan originators with the department, may work from any licensed location of the licensed company within the State of Mississippi in the capacity of a loan originator as described in this chapter. The term does not include individuals whose job responsibilities on behalf of a company are solely clerical in nature, which is defined as normal office procedures, not including any duties listed in the definition of “loan originator,” or sales representatives of a licensed Mississippi manufactured housing operation who transmits information concerning a sale via mail, courier service, or electronically to a licensee or registered originator.
(m) “Loan processor” means an employee of a licensed mortgage broker, mortgage lender or a person exempt from licensure under this chapter and who performs, under the direction and supervision of the mortgage broker, lender, originator or other exempt person, certain clerical duties in connection with residential mortgage loan transactions, which may include collecting financial information and other related documentation that is a part of the mortgage loan application process, ordering verification of employment, verification of deposits, requests for mortgage or other information necessary to process the mortgage loan application. A loan processor may not perform any of the duties of an originator enumerated in paragraph (1), but a loan originator may perform the duties of a loan processor.
(n) “Lock-in agreement” means a written agreement stating the terms of the lock-in fee.
(o) “Lock-in fee” means a fee collected by a licensee to be paid to a lender to guarantee an interest rate or a certain number of points on a mortgage loan from the lender.
(p) “Make a mortgage loan” means to advance funds, offer to advance funds or make a commitment to advance funds to a borrower.
(q) “Misrepresent” means to make a false statement of a substantive fact or to engage in, with intent to deceive or mislead, any conduct that leads to a false belief that is material to the transaction.
(r) “Mortgage broker” means any person who directly or indirectly or by electronic activity solicits, places or negotiates mortgage loans for others, or offers to solicit, place or negotiate mortgage loans for others that does not close mortgage loans in the company name, does not use its own funds, or who closes mortgage loans in the name of the company, and sells, assigns or transfers the loan to others within forty-eight (48) hours of the closing.
(s) “Mortgage lender” means any person who directly or indirectly or by electronic activity originates, makes, funds or purchases or offers to originate, make, or fund or purchase a residential mortgage loan or who services mortgage loans.
(t) “Mortgage lending process” means the process through which a person seeks or obtains a mortgage loan, including, but not limited to, solicitation, application, origination, negotiation of terms, third-party provider services, underwriting, signing and closing, and funding of the loan. Documents involved in the mortgage lending process include, but are not limited to, uniform residential loan applications or other loan applications, appraisal reports, HUD-1 settlement statements, supporting personal documentation for loan applications such as W-2 forms, verifications of income and employment, bank statements, tax returns, payroll stubs and any required disclosures.
(u) “Mortgage loan” means a loan or agreement to extend credit made to a natural person, which loan is secured by a deed to secure debt, security deed, mortgage, security instrument, deed of trust or other document representing a security interest or loan upon any interest in a lot intended for residential purposes, or single- to four-family residential property located in Mississippi, regardless of where made, including the renewal or refinancing of any loan.
(v) “Multistate licensing system” means a system involving one or more states, the District of Columbia or the Commonwealth of Puerto Rico established to facilitate the sharing of regulatory information and the licensing and application processes, by electronic or other means, for mortgage brokers, mortgage lenders and mortgage loan originators.
(w) “Natural person” means a human being, as distinguished from an artificial person created by law.
(x) “Person” means any individual, sole proprietorship, corporation, limited liability company, partnership, trust or any other group of individuals, however organized.
(y) “Principal” means a person who, directly or indirectly, owns or controls an ownership interest of ten percent (10%) or more in a corporation or any other form of business organization, regardless of whether the person owns or controls the ownership interest through one or more persons or one or more proxies, powers of attorney, nominees, corporations, associations, limited liability companies, partnerships, trusts, joint-stock companies, other entities or devises, or any combination thereof.
(z) “Principal officer” means an owner or employee of a mortgage broker or mortgage lender who submits documentation of two (2) years’ experience directly related to mortgage lending, who registers as a loan originator as defined in this chapter, and who resides within one hundred twenty-five (125) miles of the licensed main office of the company.
(aa) “Records” or “documents” means any item in hard copy or produced in a format of storage commonly described as electronic, imaged, magnetic, microphotographic or otherwise, and any reproduction so made shall have the same force and effect as the original thereof and be admitted in evidence equally with the original.
(bb) “Registrant” means any person required to register under Section 81-18-5(l).
(cc) “Residential immovable property” means property such as, but not limited to, vinyl siding, roofs, pools, spas, appliances, windows, home additions, landscaping, fencing, etc.
(dd) “Residential property” means improved real property or lot used or occupied, or intended to be used or occupied, as a residence by a person.
(ee) “Service a mortgage loan” means the collection or remittance for another, the right to collect or remit for another, or the collection of the company’s own loan portfolio, whether or not the company originated, funded or purchased the loan in the secondary market, of payments of principal and interest, trust items such as insurance and taxes, and any other payments pursuant to a mortgage loan.
§ 81-18-5. Exemptions [Repealed effective July 1, 2012].
The following persons are not subject to the provisions of this chapter, unless otherwise provided in this chapter:
(a) Any person authorized to engage in business as a bank holding company or as a financial holding company, or any wholly owned subsidiary thereof; however, the wholly owned subsidiary must file a notification statement that includes the following information:
(i) The name or names under which business will be conducted in Mississippi;
(ii) The name and address of the parent financial institution;
(iii) The name, mailing address, telephone number, and fax number of the person or persons responsible for handling consumer inquiries and complaints;
(iv) The name and address of the registered agent for service of process in Mississippi;
(v) A statement signed by the president or chief executive officer of the entity stating that the entity will receive and process consumer inquiries and complaints promptly, fairly, and in compliance with all applicable laws; and
(vi) A fee of One Hundred Dollars ($100.00).
The notification statement must be filed before beginning to conduct a mortgage business in this state and must be updated by the entity as the information changes. Any entity that fails to file the notification statement or keep the information current will be immediately subject to the licensing requirements of Section 81-18-9. This notification statement must be renewed annually as of December 31 of each year with a renewal fee of One Hundred Dollars ($100.00).
(b) Any person authorized to engage in business as a bank, credit card bank, savings bank, savings institution, savings and loan association, building and loan association, trust company or credit union under the laws of the United States, any state or territory of the United States, or the District of Columbia, the deposits of which are federally insured, or any wholly owned subsidiary thereof.
(c) Any lender holding a license under the Small Loan Regulatory Law (Section 75-67-101 et seq.) and the Small Loan Privilege Tax Law (Section 75-67-201 et seq.).
(d) Any attorney licensed to practice law in Mississippi who provides mortgage loan services incidental to the practice of law and who is not a principal of a company as defined under this chapter.
(e) A real estate company or licensed real estate salesperson or broker who is actively engaged in the real estate business and who does not receive any fee, commission, kickback, rebate or other payment for directly or indirectly negotiating, placing or finding a mortgage for others.
(f) Any person performing any act relating to mortgage loans under order of any court.
(g) During the licensing period provided in this chapter, including those acting as loan originators: Any person who is employed by and represents a Mississippi manufactured housing operation and who makes not more than twelve (12) Mississippi residential mortgage loans on manufactured housing and land transactions, modular homes or any combination thereof; any person who engages in owner-financing of not more than twelve (12) Mississippi residential mortgage loans; or any person who contracts for or is engaged in the financing of a consumer loan secured by a mortgage on residential immovable property in not more than twelve (12) Mississippi residential mortgage loans. The aforementioned twelve (12) transactions are cumulative to any combination of operations owned or controlled by any one individual, sole proprietorship, corporation, limited liability company, partnership, trust or any other group of individuals, however organized, during the licensing period provided in this chapter. However, within thirty (30) days of loan closure, the person shall submit to the commissioner a fee of Ten Dollars ($10.00), which is not chargeable to the consumer, and written notification containing such loan information as required by the commissioner, seeking approval to engage in a residential mortgage transaction without first complying with the licensing provisions of this chapter. Any person who enters into more than twelve (12) of those transactions in the licensing period provided in this chapter must be licensed according to the procedures prescribed in this chapter. The fees paid for registration during a licensing period will be deducted from the cost of an initial license. This paragraph (g) shall not include persons solely involved in the making of a mortgage loan on modular homes.
(h) Any natural person who purchases mortgage loans from a licensed mortgage broker or mortgage lender solely as an investment and who is not in the business of making or servicing mortgage loans.
(i) Any person who makes a mortgage loan to his or her employee as an employment benefit.
(j) The United States of America, the State of Mississippi or any other state, and any agency, division or corporate instrumentality thereof including, but not limited to, the Mississippi Home Corporation, Rural Economic Community Development (RECD), Habitat for Humanity, the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Company (FHLMC), the Government National Mortgage Association (GNMA), the United States Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), the Farmers Home Administration (FmHA), and the Federal Land Banks and Production Credit Associations.
(k) Nonprofit corporations exempt from federal taxation under Section 501(c) of the Internal Revenue Code making mortgage loans to promote home ownership or home improvements for the disadvantaged.
(l) Loan originators as defined under Section 81-18-3 are exempt from the licensing requirements of this chapter except for Sections 81-18-9(3)(d), 81-18-13, 81-18-15(3), 81-18-17, 81-18-37 and 81-18-43, but shall register with the department as a loan originator through the multistate licensing system. Any person required to register under this paragraph shall register initially with the department and thereafter file an application for renewal of registration with the department on or before December 31 of each year providing the department with such information as the department may prescribe by regulation, including, but not limited to, the business address where the person engages in any business activities covered by this chapter, proof of at least one (1) year of experience directly in mortgage lending within the two (2) years prior to the date of application, the residential address of the applicant and a telephone number that customers may use to contact the person. If the person does not meet the experience requirement, then he or she shall complete a pre-licensing course consisting of a minimum of twenty-four (24) hours of education as approved by the Mississippi Association of Mortgage Brokers, the National Association of Mortgage Brokers, the Mortgage Bankers Association or the Mortgage Bankers Association of Mississippi for the experience waiver. If the experience did not occur within the State of Mississippi, then the department shall require the person to complete an education course of a minimum of four (4) hours covering the Mississippi Mortgage Consumer Protection Law and to pass an examination covering the course material. This initial registration of a loan originator shall be accompanied by a fee of One Hundred Dollars ($100.00). Annual renewals of this registration shall require a fee of Fifty Dollars ($50.00). No person required to register under this paragraph shall transact business in this state directly or indirectly as a loan originator unless that person is registered with the department. The loan originator shall display the current, original registration issued by the department in the licensed office in which he or she is assigned.
§ 81-18-7. Mortgage broker or mortgage lender licensing requirement; violations [Repealed effective July 1, 2012].
(1) On and after July 1, 2000, no person shall transact business in this state, directly or indirectly, as a mortgage broker or mortgage lender unless he or she is licensed by the department or is a person exempted from the licensing requirements under Section 81-18-5.
(3) On and after July 1, 2000, every person who directly or indirectly controls a person who violates this section, including a general partner, executive officer, joint venturer, contractor, or director of the person, violates this section to the same extent as the person, unless the person whose violation arises under this subsection shows by a preponderance of evidence the burden of proof that he or she did not know and, in the exercise of reasonable care, could not have known of the existence of the facts by reason of which the original violation is alleged to exist.
§ 81-18-8. Enactment of local ordinances and regulations in compliance with this chapter authorized [Repealed effective July 1, 2012].
Municipalities and counties in this state may enact ordinances that are in compliance with, but not more restrictive than, the provisions of this chapter. Any order, ordinance or regulation existing on July 1, 2002, or enacted on or after July 1, 2002, that conflicts with this provision shall be null and void.
§ 81-18-9. Application for license [Repealed effective July 1, 2012].
(1) An application for a license under this chapter shall be made through the multistate licensing system and in the form as the department may prescribe.
(2) The application shall include at least the following:
(a) The legal name, residence, and business address of the applicant and, if applicable the legal name, residence and business address of every principal, together with the resume of the applicant and of every principal of the applicant.
(c) The complete address of the applicant’s main office, branch office(s) and any other locations at which the applicant will engage in any business activity covered by this chapter.
(e) Documentation satisfactory to the department as to a certificate of existence of authority to transact business lawfully in Mississippi, if an individual, sole proprietorship, limited liability company, partnership, trust or any other group of individuals, however organized.
(f) If a foreign corporation, a copy of a certificate of authority to conduct business in Mississippi and the address of the main corporate office of the foreign corporation.
(g) Documentation of a minimum of two (2) years’ experience directly in mortgage lending by a person named as the principal officer of the company. This experience shall have been within the previous four (4) years from the date of application. If the proof of experience is with a company that is located outside of Mississippi, then the principal officer shall be required to complete four (4) hours of approved courses on the Mississippi Mortgage Consumer Protection Law. The principal officer shall also register as a loan originator with the department. Evidence shall include, where applicable:
(iv) Any other data and pertinent information as the department may require with respect to the applicant, its directors, principals, trustees, officers, members, contractors or agents. A resume alone shall not be sufficient proof of employment history.
(3) The application shall be filed together with the following:
(b) A completed form signed by an owner, chief executive officer or named principal officer authorizing the department to obtain information from outside sources for each person, executive officer and employee;
(c) An original or certified copy of a surety bond in favor of the State of Mississippi for the use, benefit, and indemnity of any person who suffers any damage or loss as a result of the company’s breach of contract or of any obligation arising therefrom or any violation of law; and
(d) Except as provided in this paragraph (d), a set of fingerprints from any local law enforcement agency from the following applicants:
(iii) Any shareholders owning ten percent (10%) or more of the outstanding shares of the corporation; and
(iv) All loan originators.
§ 81-18-11. Classes of companies; minimum amounts of surety bonds [Repealed effective July 1, 2012].
(1) For purposes of Section 81-18-9, the definitions of the classes of companies and their respective minimum amounts of surety bonds will be:
(a) “Mortgage broker” shall be defined as any person that directly solicits, processes, places or negotiates mortgage loans for others and that does not close mortgage loans in the company name, does not use its own funds, or who closes mortgage loans in the name of the company, and sells, assigns or transfers the loan to others within forty-eight (48) hours of the closing. The amount of the surety bond for mortgage brokers shall be Twenty-five Thousand Dollars ($25,000.00).
(b) “Mortgage lender” shall be defined as any company that makes a mortgage loan, using its own funds, for others or for compensation or gain, with the expectation of retaining servicing rights to those loans, or in the expectation of gain, either directly or indirectly, sells or offers to sell a mortgage loan to an investor in the secondary market. This definition includes companies that utilize the services of a person exempted or licensed under this chapter to make a mortgage loan, or purchase or service a mortgage loan, or who services mortgage loans only, including loans in the company’s own portfolio. The amount of the surety bond for a mortgage lender shall be One Hundred Fifty Thousand Dollars ($150,000.00). However, any licensed company that was required by this chapter before July 1, 2007, to hold a surety bond in the amount of Fifty Thousand Dollars ($50,000.00) shall not be required to increase its bond until its 2007 license year renewal.
(2) All surety bonds shall be in favor, first, of the State of Mississippi for the use, benefit and indemnity of any person who suffers any damage or loss as a result of the company’s breach of contract or of any obligation arising from contract or any violation of law, and, second, for the payment of any civil penalties, criminal fines, or costs of investigation and/or prosecution incurred by the State of Mississippi, including local law enforcement agencies.
§ 81-18-13. Licensing procedures and criteria [Repealed effective July 1, 2012].
(1) Upon receipt of an application for licensure or registration, which shall include the required set of fingerprints from any local law enforcement agency, the department or designated third party shall conduct such an investigation as it deems necessary to determine that the applicant and its officers, directors and principals are of good character and ethical reputation; that the applicant demonstrates reasonable financial responsibility; and that the applicant has reasonable policies and procedures to receive and process customer grievances and inquiries promptly and fairly.
(2) The department shall not license an applicant unless it is satisfied that the applicant will operate its mortgage activities in compliance with the laws, rules and regulations of this state and the United States.
(3) The department shall not license any mortgage broker or mortgage lender unless the applicant meets the requirements of Section 81-18-11.
(4) The department shall not issue a license or registration if it finds that the applicant, or any person who is a director, officer, partner or principal officer of the applicant, has been convicted of: (a) a felony in any jurisdiction; or (b) a crime that, if committed within this state, would constitute a felony under the laws of this state; or (c) a misdemeanor of fraud, theft, forgery, bribery, embezzlement or making a fraudulent or false statement in any jurisdiction. The department may renew the existing license or registration of any such applicant or person who holds a license or registration on July 1, 2007. However, any person submitting an initial application for license or registration with a different company after July 1, 2007, in which the background check discloses a felony or misdemeanor as described in this subsection shall be denied licensure or registration by the department. For the purposes of this chapter, a person shall be deemed to have been convicted of a crime if the person has pleaded guilty to a crime before a court or federal magistrate, or plea of nolo contendere, or has been found guilty of a crime by the decision or judgment of a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension of a sentence, unless the plea of guilty, or the decision, judgment or verdict, has been set aside, reversed or otherwise abrogated by lawful judicial process, or unless the person convicted of the crime has received a pardon from the President of the United States or the Governor or other pardoning authority in the jurisdiction where the conviction was obtained.
(5) In order to determine the applicant’s suitability for a license, the commissioner or a designated third party shall forward the fingerprints submitted with the application to the Department of Public Safety; and if no disqualifying record is identified at the state level, the fingerprints shall be forwarded by the Department of Public Safety or a designated third party to the FBI for a national criminal history record check. All conviction data received by the department shall be used by the department for the exclusive purpose of carrying out the responsibilities of this chapter, may not be a public record, shall be privileged, and may not be disclosed to any other person or agency, except to any person or agency that otherwise has a legal right to inspect the file. All records shall be maintained by the department according to law, except as provided in the uniform multistate administration of an automated licensing system for mortgage brokers, mortgage lenders and loan originators. As used in this section “conviction data” means a record of a finding or verdict of guilty or plea of guilty or plea of nolo contendere with regard to any crime regardless of whether an appeal of the conviction has been sought.
(6) The department shall deny a license or registration or otherwise restrict a license or registration if it finds that the applicant, or any person who is a director, officer, partner, affiliate, contractor or principal of the applicant, has had any professional license denied, revoked or suspended by any state within two (2) years of the date of the application.
(7) Within fifteen (15) days after receipt of a completed application, final verification from the Department of Public Safety and/or FBI, and payment of licensing fees prescribed by this chapter, the department shall either grant or deny the request for license.
(8) A person shall not be indemnified for any act covered by this chapter or for any fine or penalty incurred under this chapter as a result of any violation of this chapter or regulations adopted under this chapter, due to the legal form, corporate structure, or choice of organization of the person, including, but not limited to, a limited liability corporation.
§ 81-18-15. License renewal procedures; license fees; continuing education requirement [Repealed effective July 1, 2012].
(1) Each license shall remain in full force and effect until relinquished, suspended, revoked or expired. With each initial application for a license to operate as a mortgage broker or mortgage lender, the applicant shall pay through the multistate licensing system to the commissioner a license fee of Seven Hundred Fifty Dollars ($750.00), and on or before December 31 of each year thereafter, an annual renewal fee of Four Hundred Seventy-five Dollars ($475.00). If the annual renewal fee remains unpaid, the license shall expire, but not before December 31 of any year for which the annual renewal fee has been paid. If any person engages in business as provided for in this chapter without paying the license fee provided for in this subsection before commencing business or before the expiration of the person’s current license, as the case may be, then the person shall be liable for the full amount of the license fee, plus a penalty in an amount not to exceed Twenty-five Dollars ($25.00) for each day that the person has engaged in such business without a license or after the expiration of a license. All licensing fees and penalties shall be paid into the Consumer Finance Fund of the department. If the application is withdrawn or denied, the application fee is not refundable.
(3) Each application for licensing renewal or registration renewal shall include evidence of the satisfactory completion of at least twelve (12) hours of approved continuing education in primary and subordinated financing transactions by the principal officer on file with the department and registered loan originators. Two (2) of the twelve (12) hours shall consist of instruction on the Mississippi Mortgage Consumer Protection Law and shall be approved by the department once the course is approved by the Mississippi Association of Mortgage Brokers, the National Association of Mortgage Brokers, the Mortgage Bankers Association or the Mortgage Bankers Association of Mississippi. For purposes of this subsection (3), approved courses shall be those as approved by the Mortgage Bankers Association, the National Association of Mortgage Brokers, the Mississippi Association of Mortgage Brokers or the Mortgage Bankers Association of Mississippi, who shall submit to the department a listing of approved schools, courses, programs and special training sessions. However, each application for licensing renewal or registration renewal of manufactured housing licensees or originators shall include evidence of the satisfactory completion of at least twelve (12) hours of continuing education, of which eight (8) hours must be approved by the Commissioner of Insurance and four (4) hours consisting of courses in primary and subordinated financing transactions must be approved by the Mississippi Manufactured Housing Association, which shall submit to the department a listing of those approved schools, courses, programs and special training sessions. A manufactured housing licensee or loan originator may submit evidence of completion of courses that have been approved by the Mortgage Bankers Association, the National Association of Mortgage Brokers, the Mississippi Association of Mortgage Brokers or the Mortgage Bankers Association of Mississippi to satisfy the four-hour requirement of courses in primary and subordinated financing transactions.
§ 81-18-17. License or registration to state name, address, and principle place of business of licensee or registrant; original license or registration to be displayed in conspicuous place; license or registration nontransferable and nonassignable; notification to department of change in address, location, officers, etc.; department approval required for opening of branch office [Repealed effective July 1, 2012].
(1) Each license or registration issued under this chapter shall state the address of the licensee’s principal place of business, the registrant’s assigned licensed location and the name of the licensee or registrant.
(2) A licensee or registrant shall post the original license or original registration in a conspicuous place in the assigned place of business of the licensee.
(3) A license or registration may not be transferred or assigned.
(4) No licensee or registrant shall transact business under any name other than that designated in the license or registration.
(5) Each licensee shall notify the department, in writing, of any change in the address of its principal place of business or registered loan originator or of any additional location of business or any change of officer, director or principal of the licensee, or registered loan originator within thirty (30) days of the change.
(6) No licensee shall open a branch office in this state or a branch office outside this state from which the licensee has direct contact with consumers regarding origination or brokering Mississippi residential property, without prior approval of the department. An application for any branch office shall be made through the multistate licensing system on a form prescribed by the department, which shall include at least evidence of compliance with subsection (1) of Section 81-18-25 as to that branch and shall be accompanied by payment of a nonrefundable application fee of One Hundred Dollars ($100.00) and at least one (1) loan originator application registered at that branch office. The application shall be approved unless the department finds that the applicant has not conducted business under this chapter in accordance with law. The application shall be deemed approved if notice to the contrary has not been mailed by the department to the applicant within thirty (30) days of the date that the complete application is received by the department. After approval, the applicant shall give written notice to the department within ten (10) days of the commencement of business at the branch office. Each branch office that currently holds a branch license shall renew that branch license before the expiration date of the main company license, on or before December 31. The license renewal shall be on a form prescribed by the department with a nonrefundable renewal application fee of Twenty-five Dollars ($25.00).
§ 81-18-19. Acquisition of interest in licensee [Repealed effective July 1, 2012].
(1) Except as provided in this section, no person shall acquire directly or indirectly ten percent (10%) or more of the voting shares of a corporation or ten percent (10%) or more of the ownership of any other entity licensed to conduct business under this chapter unless it first files an application in accordance with the requirements prescribed in Section 81-18-9.
(3) A decision of the department denying a license or registration, original or renewal shall be conclusive, except that the applicant may seek judicial review in the Chancery Court of the First Judicial District of Hinds County, Mississippi.
(a) The acquisition of an interest in a licensee directly or indirectly including an acquisition by merger or consolidation by or with a person registered under this chapter or exempt from this chapter under Section 81-18-5.
(c) The acquisition of an interest in a licensee by a person by bequest, device, gift or survivorship or by operation of law.
§ 81-18-21. Maintenance and investigation of business records; biennial investigation; examination fee; department authorized to examine persons suspected of conducting business requiring a license [Repealed effective July 1, 2012].
(1) Any person required to be licensed under this chapter shall maintain in its offices, or such other location as the department shall permit, the books, accounts and records necessary for the department to determine whether or not the person is complying with the provisions of this chapter and the rules and regulations adopted by the department under this chapter. These books, accounts and records shall be maintained apart and separate from any other business in which the person is involved and may represent historical data for three (3) years preceding the date of the last license application date forward. The books, accounts and records shall be kept in a secure location under conditions that will not lead to their damage or destruction. If the licensee wishes to keep the files in a location other than the location listed on the license, then the licensee first must submit a written request on a form designated by the department and gain written approval from the commissioner before storing the files at an off-site secure location.
(2) To assure compliance with the provisions of this chapter, the department may examine the books and records of any licensee without notice during normal business hours. The commissioner shall charge the licensee an examination fee in an amount not less than Three Hundred Dollars ($300.00) nor more than Six Hundred Dollars ($600.00) for each office or location within the State of Mississippi, plus any actual expenses incurred while examining the licensee’s records or books that are located outside the State of Mississippi. However, in no event shall a licensee be examined more than once in a two-year period unless for cause shown based upon consumer complaint and/or other exigent reasons as determined by the commissioner.
(3) The department, its designated officers and employees, or its duly authorized representatives, for the purposes of discovering violations of this chapter and for the purpose of determining whether any person or individual reasonably suspected by the commissioner of conducting business that requires a license or registration under this chapter, may investigate those persons and individuals and examine all relevant books, records and papers employed by those persons or individuals in the transaction of business, and may summon witnesses and examine them under oath concerning matters as to the business of those persons, or other such matters as may be relevant to the discovery of violations of this chapter including, without limitation, the conduct of business without a license or registration as required under this chapter.
(4) The department, in its discretion, may disclose information concerning any violation of this chapter or any rule, regulation, or order under this chapter, provided the information is derived from a final order of the department.
(5) Examinations and investigations conducted under this chapter and information obtained by the department, except as provided in subsection (4) of this section, in the course of its duties under this chapter are confidential.
(6) In the absence of malice, fraud or bad faith a person is not subject to civil liability arising from the filing of a complaint with the department, furnishing other information required by this chapter, information required by the department under the authority granted in this chapter, or information voluntarily given to the department related to allegations that a licensee or prospective licensee has violated this chapter.
§ 81-18-23. Annual written report by licensee [Repealed effective July 1, 2012].
(1) Each company shall annually, on or before March 31, file a written report with the department containing the December 31 information that the department may reasonably require concerning the company’s business and operations during the preceding calendar year. The report shall be made in the form prescribed by the department.
(2) Any company that fails to file with the department by March 31 the report required by this section shall be subject to a late penalty of Ten Dollars ($10.00) for each day after March 31 the report is delinquent, but in no event shall the aggregate of late penalties exceed Two Hundred Dollars ($200.00).
(3) The department, in its discretion, may relieve any company from the payment of any penalty, in whole or in part, for good cause.
(4) If a company fails to pay a penalty from which it has not been relieved, the department may maintain an action at law to recover the penalty.
(5) Within fifteen (15) days of the occurrence of any of the following events, a company shall file a written report with the commissioner describing the event and its expected impact on the activities of the company in this state:
(c) Any felony indictment of the company or any of its directors, executive officers, principal officer or loan originators;
(d) Any felony conviction of the company or any of its directors, executive officers, principal officer or loan originators; or
(e) Any misdemeanor conviction, in which fraud is an essential element, of any of the company’s directors, executive officers, principal officer or loan originators.
(6) If the company, owner, principal officer of a company or registered loan originator is involved in a civil action concerning the company, then the person shall notify the commissioner in writing within sixty (60) days after the initial filing of the civil action.
§ 81-18-25. Requirements for principal place of business and branch offices [Repealed effective July 1, 2012].
(1) Each principal place of business and branch office in the state shall meet all of the following requirements:
(c) Display a permanent sign outside the place of business readily visible to the general public, unless the display of sign violates local zoning ordinances or restrictive covenants. The sign must contain the name of the licensee and the words “Mississippi Licensed Mortgage Company” or “Mississippi Registered Mortgage Company” or, if the initial license is obtained after July 1, 2007, the words “Licensed by the Mississippi Department of Banking and Consumer Finance”.
(2) Each licensee shall prominently display the original license at the principal place of business and each branch office.
(3) Each person registered under this chapter shall prominently display his or her original registration in the office where the person is employed.
(4) If one (1) of the following is correct, then that location shall be licensed as a mortgage broker or mortgage lender under this chapter and not as a branch:
(d) All practices, policies and procedures, including, but not limited to, those relating to employment and operations, are not originated and established by the licensee or registered company and are not applied consistently to the main office and all branches.
Nothing in this subsection (4) shall affect or change, or be construed as affecting or changing, the existing statutory law and common law on agency, principal and agent, independent contractors, and parent and subsidiary companies.
§ 81-18-27. Prohibited acts; licensed mortgage broker or mortgage lender to broker residential mortgage loan only to licensed mortgage brokers or mortgage lenders or exempt persons [Repealed effective July 1, 2012].
(1) No person required to be licensed or registered under this chapter shall:
(a) Misrepresent the material facts or make false promises intended to influence, persuade or induce an applicant for a mortgage loan or mortgagee to take a mortgage loan or cause or contribute to misrepresentation by its agents or employees.
(d) Improperly refuse to issue a satisfaction of a mortgage loan.
(e) Fail to account for or deliver to any person any personal property obtained in connection with a mortgage loan, such as money, funds, deposits, checks, drafts, mortgages or other documents or things of value that have come into the possession of the licensee and that are not the property of the licensee, or that the licensee is not by law or at equity entitled to retain.
(f) Engage in any transaction, practice, or course of business that is not in good faith, or that operates a fraud upon any person in connection with the making of or purchase or sale of any mortgage loan, including the use of correction fluid on any document associated with the mortgage loan.
(g) Engage in any fraudulent residential mortgage underwriting practices.
(h) Induce, require, or otherwise permit the applicant for a mortgage loan or mortgagor to sign a security deed, note, or other pertinent financial disclosure documents with any blank spaces to be filled in after it has been signed, except blank spaces relating to recording or other incidental information not available at the time of signing.
(i) Make, directly or indirectly, any residential mortgage loan with the intent to foreclose on the borrower’s property. For purposes of this paragraph, there is a presumption that a person has made a residential mortgage loan with the intent to foreclose on the borrower’s property if all of the following circumstances are proven:
(j) Charge or collect any direct payment, compensation or advance fee from a borrower unless and until a loan is actually found, obtained and closed for that borrower, and in no event shall that direct payment, compensation or advance fee exceed seven and ninety-five one-hundredths percent (7.95%) of the original principal amount of the loan, and any such direct payments, compensation or advance fees shall be included in all annual percentage rate (APR) calculations if required under Regulation Z of the federal Truth in Lending Act (TILA). A direct payment, compensation or advance fee as defined in this section shall not include:
(k) Pay to any person not licensed or registered under the provisions of this chapter any commission, bonus or fee in connection with arranging for or originating a mortgage loan for a borrower, except that a registered loan originator may be paid a bonus, commission, or fee by his or her licensed employer.
(l) Refuse to provide the loan payoff within three (3) business days of an oral or written request from a borrower or third party. Proof of authorization of the borrower shall be submitted for a third-party request.
(m) Knowingly withhold, extract, remove, mutilate, destroy or conceal any books, records, computer records or other information which are required by law to be disclosed.
(3) No nonbanking entity may use any sign or handwritten or printed paper indicating that it is a bank, savings bank, trust company or place of banking. No entity may use the word “bank,” “savings bank,” “banking,” “banker” or “trust company,” or the equivalent or plural of any of these words, in connection with any business other than that of banking. This subsection does not prohibit a person from acting in a trust capacity.
§ 81-18-28. Maximum lock-in fee; contents of lock-in fee agreement [Repealed effective July 1, 2012].
(1) A licensed mortgage broker or mortgage lender may enter into lock-in agreements and collect a lock-in fee from a borrower on the lender’s behalf. The lock-in fee shall not exceed the following:
§ 81-18-29. Promulgation of rules and regulations [Repealed effective July 1, 2012].
The commissioner shall promulgate those rules and regulations, not inconsistent with law, necessary for the enforcement of this chapter.
§ 81-18-31. Regulations governing advertising of mortgage loans [Repealed effective July 1, 2012].
The department shall promulgate regulations governing the advertising of mortgage loans, including, but not limited to, the following requirements:
(a) That all advertisements for loans regulated under this chapter may not be false, misleading or deceptive. No person whose activities are regulated under this chapter may advertise in any manner so as to indicate or imply that its interest rates or charges for loans are “recommended,” “approved,” “set” or “established” by the State of Mississippi;
(e) That no licensee shall advertise its services in Mississippi in any media disseminated primarily in this state, whether print or electronic, without the words “Mississippi Licensed Mortgage Company” or “Mississippi Registered Mortgage Company” or, if the initial license is obtained after July 1, 2007, the words “Licensed by the Mississippi Department of Banking and Consumer Finance”.
§ 81-18-33. Required contents of individual borrower files [Repealed effective July 1, 2012].
The individual borrower files of a licensee shall contain at least the following:
(i) “As required by Mississippi Law, (licensed company name) has secured a bond issued by (name of insurance company), a surety company authorized to do business in this state. A certified copy of this bond is filed with the Mississippi Commissioner of Banking and Consumer Finance.”
(ii) “As a borrower you are protected under the Mississippi Mortgage Consumer Protection Law.”
(iii) “Complaints against a licensee may be made by contacting the:
Jackson, MS 39225-3729″;
(h) A copy of the final signed Uniform Residential Loan Application.
§ 81-18-35. Journal of mortgage transactions [Repealed effective July 1, 2012].
Each licensee shall maintain a journal of mortgage transactions at the principal place of business as stated on its license, which shall include at least the following information:
(c) Disposition of loan application, indicating date of loan funding, loan denial, withdrawal and name of lender if applicable.
§ 81-18-36. Funds paid to licensee for payment of taxes or insurance premiums must be deposited in separate account from funds belonging to licensee; account to be designated “escrow account”; accounting for funds [Repealed effective July 1, 2012].
(1) (a) All monies paid to a licensee for payment of taxes, loan commitment deposits, work completion deposits, appraisals, credit reports or insurance premiums on property that secures any loan made or serviced by the licensee shall be deposited in an account that is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration and shall be kept separate, distinct, and apart from funds belonging to the licensee.
(b) The funds, when deposited, are to be designated as an “escrow account,” or under some other appropriate name, indicating that the funds are not the funds of the licensee.
(3) The licensee shall, upon reasonable notice, account to the commissioner for all funds in the company’s escrow account.
(5) It is unlawful for any licensee knowingly to keep or cause to be kept any funds or money in any bank or other financial institution under the heading of “escrow account” or any other name designating the funds or monies belonging to the debtors of the licensee, except actual funds paid to the licensee for the payment of taxes and insurance premiums on property securing loans made or serviced by the company.
§ 81-18-37. Suspension or revocation of license; notice to licensee [Repealed effective July 1, 2012].
(1) The department may suspend or revoke any license or registration for any reason that would have been grounds for refusal to issue an original license or registration or for:
(b) Failure of the licensee or registrant to pay, within thirty (30) days after it becomes final and nonappealable, a judgment recovered in any court within this state by a claimant or creditor in an action arising out of the licensee’s or registrant’s business in this state as a mortgage broker or mortgage lender.
(2) Notice of the department’s intention to enter an order denying an application for a license or registration under this chapter or of an order suspending or revoking a license or registration under this chapter shall be given to the applicant, licensee or registrant in writing, sent by registered or certified mail addressed to the principal place of business of the applicant, licensee or registrant. Within thirty (30) days of the date of the notice of intention to enter an order of denial, suspension or revocation under this chapter, the applicant, licensee or registrant may request in writing a hearing to contest the order. If a hearing is not requested in writing within thirty (30) days of the date of the notice of intention, the department shall enter a final order regarding the denial, suspension or revocation. Any final order of the department denying, suspending or revoking a license or registration shall state the grounds upon which it is based and shall be effective on the date of issuance. A copy of the final order shall be forwarded promptly by registered or certified mail addressed to the principal place of business of the applicant, licensee or registrant.
§ 81-18-39. Definition of “person”; violations of law; cease and desist orders; failure to comply with order; civil penalty [Repealed effective July 1, 2012].
(1) For purposes of this section, the term “person” shall be construed to include any officer, director, employee, affiliate or other person participating in the conduct of the affairs of the person subject to the orders issued under this section.
(2) If the department reasonably determines that a person required to be licensed or registered under this chapter has violated any law of this state or any order or regulation of the department, the department may issue a written order requiring the person to cease and desist from unlawful or unauthorized practices. In the case of an unlawful purchase of mortgage loans, the cease and desist order to a purchaser shall constitute the knowledge required under this section for any subsequent violations.
(3) Any person required to be licensed or registered under this chapter who has been deemed by the commissioner, after notice and hearing, to have violated the terms of any order properly issued by the department under this section shall be liable for a civil penalty not to exceed Three Thousand Dollars ($3,000.00). The department, in determining the amount of the penalty, shall take into account the appropriateness of the penalty relative to the size of the financial resources of the person, the good faith efforts of the person to comply with the order, the gravity of the violation, the history of previous violations by the person, and other factors or circumstances that contributed to the violation. The department may compromise, modify or refund any penalty that has been imposed under this section. Any person assessed a penalty as provided in this subsection shall have the right to request a hearing on the amount of the penalty within ten (10) days after receiving notification of the assessment. If no hearing is requested within ten (10) days of the receipt of the notice, the penalty shall be final except as to judicial review in the Chancery Court of the First Judicial District of Hinds County. Upon the filing of a petition for judicial review, the court shall issue an order to the licensee requiring the licensee to show cause why it should not be entered. If the court determines, after a hearing upon the merits or after failure of the person to appear when so ordered, that the order of the department was properly issued, it shall grant the penalty sought by the department.
§ 81-18-40. Commissioner authorized to issue subpoenas; penalties for noncompliance with subpoena [Repealed effective July 1, 2012].
(1) For the purpose of conducting investigations, examinations or other proceedings under this chapter, the commissioner or his designee may issue subpoenas to any individual, person or other entity for the production of all books, papers, records, files, documents or other things, and may subpoena and compel the attendance of witnesses to give testimony, and may administer oaths. Subpoenas as herein provided may be served either by personal process or by registered mail, and upon service shall command attendance of such witnesses, and/or production of such papers and documents, at the time and place so specified.
(2) Any person or entity who fails or refuses to comply with a subpoena issued hereunder may be assessed by the commissioner a civil penalty of not more than Five Hundred Dollars ($500.00) for each day of noncompliance, and any privileges or licenses issued by the commissioner to the person or entity may be suspended for not more than six (6) months. In addition to the civil penalty, the commissioner shall be entitled to the assistance of the chancery court or the chancellor in vacation, which, on petition by the commissioner or his designee, shall issue ancillary subpoenas and petitions and may punish as for contempt of court in the event of noncompliance therewith, and assess attorneys’ fees and costs, if deemed appropriate.
§ 81-18-41. Continuation of loan servicing under existing servicing contracts by suspended licensee [Repealed effective July 1, 2012].
Nothing in this chapter shall preclude a person whose license has been suspended or revoked from continuing to service mortgage loans pursuant to servicing contracts in existence at the time of the suspension or revocation for a reasonable transition period, as determined by the commissioner, after the date of the entry of the final decision in the case suspending or revoking the license.
§ 81-18-43. Penalties for violations [Repealed effective July 1, 2012].
(1) In addition to any other penalty that may be applicable, any licensee, person required to be registered, or employee who willfully violates any provision of this chapter, or who willfully makes a false entry in any document specifically required by this chapter, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punishable by a fine not in excess of One Thousand Dollars ($1,000.00) per violation or false entry.
(2) In addition to any other penalty that may be applicable, any licensee, person required to be registered, or employee who fails to make a record of a mortgage transaction and subsequently sells or disposes of the mortgage from that transaction shall be punished as follows:
(a) For a first offense, the licensee, person required to be registered, or employee shall be guilty of a misdemeanor and, upon conviction thereof, shall be punishable by a fine not in excess of One Thousand Dollars ($1,000.00) or by imprisonment in the county jail for not more than one (1) year, or both fine and imprisonment;
(b) For a second or subsequent offense, the licensee, person required to be registered, or employee shall be guilty of a felony and, upon conviction thereof, shall be punishable by a fine not in excess of Five Thousand Dollars ($5,000.00) or by imprisonment in the custody of the State Department of Corrections for a term not less than one (1) year nor more than five (5) years, or by both fine and imprisonment.
(3) Compliance with the criminal provisions of this section shall be enforced by the appropriate law enforcement agency, which may exercise for that purpose any authority conferred upon the agency by law.
(4) When the commissioner has reasonable cause to believe that a person is violating any provision of this chapter, the commissioner, in addition to and without prejudice to the authority provided elsewhere in this chapter, may enter an order requiring the person to stop or to refrain from the violation. The commissioner may sue in any chancery court of the state having jurisdiction and venue to enjoin the person from engaging in or continuing the violation or from doing any act in furtherance of the violation. In such an action, the court may enter an order or judgment awarding a preliminary or permanent injunction.
(5) The commissioner may, after notice and hearing, impose a civil penalty against any licensee if the licensee, person required to be registered, or employee is adjudged by the commissioner to be in violation of the provisions of this chapter. The civil penalty shall not exceed Five Hundred Dollars ($500.00) per violation and shall be deposited into the Consumer Finance Fund of the department.
(6) The commissioner may make public any final administrative action imposed against a licensee or registrant for a violation of this chapter, including cease and desist orders, civil monetary penalties, license suspensions, revocations or application denials.
(7) The state may enforce its rights under the surety bond as required in Section 81-18-11 as an available remedy for the collection of any civil penalties, criminal fines or costs of investigation and/or prosecution incurred.
§ 81-18-45. Commissioner authorized to hire additional full-time employees [Repealed effective July 1, 2012].
The commissioner may employ the necessary full-time employees above the number of permanent full-time employees authorized for the department for the fiscal year 2001, to carry out and enforce the provisions of this chapter. The commissioner also may expend the necessary funds and equip and provide necessary travel expenses for those employees.
§ 81-18-49. Grandfather provisions [Repealed effective July 1, 2012].
Notwithstanding any provisions of this chapter to the contrary, mortgage companies engaging in business on or before June 1, 2000, shall be duly licensed by the department after submitting not later than January 1, 2001, the required documents and fees provided in Sections 81-18-9 and 81-18-15. However, upon the expiration of the initial licenses for such mortgage companies, the department shall renew the licenses only if the mortgage companies satisfy all of the provisions of this chapter.
§ 81-18-51. Repeal of §§ 81-18-1 through 81-18-49.
Sections 81-18-1 through 81-18-49 shall stand repealed on July 1, 2012.