Source: https://www.mass.gov/regulations/209-CMR-4100-the-licensing-of-mortgage-loan-originators
Timestamp: 2019-05-19 22:50:20
Document Index: 237220216

Matched Legal Cases: ['§ 3', '§101', '§4', '§ 11', '§ 11', '§11']

The purpose of 209 CMR 41.00 et seq. is to establish procedures and requirements for the licensing and supervision of Mortgage Loan Originators under the provisions of M.G.L. c. 255F.
Nothing contained in 209 CMR 41.00 et seq. shall limit the ability of the Commissioner to consider other information in determining whether or not to approve an application, or to require information in addition to that required by the application form completed by the applicant.
As used in 209 CMR 41.00 et seq. the following words shall, unless the context otherwise requires, have the following meanings:
Depository Institution means “depository institution” as defined in § 3 of the Federal Deposit Insurance Act, and shall include credit unions.
Federal Banking Agencies meansthe Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.
Registered Mortgage Loan Originators.
Any person offering or negotiating a residential mortgage loan with or on behalf of an immediate family member.
Any person offering or negotiating a residential mortgage loan secured by a dwelling that served as the individual's primary residence.
Any person admitted to practice law in the Commonwealth negotiating the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the person's representation of the client, unless the person is compensated by a lender, a mortgage broker, or other Mortgage Loan Originator or by any agent of such lender, mortgage broker, or other Mortgage Loan Originator.
Any person engaged solely as a loan processor or underwriter unless:
1. said person is acting as an independent contractor; or
2. said person is employed by an independent contractor that provides loan processing and underwriting services for entities.
Any person that performs only real estate brokerage activities and is licensed or registered pursuant to M.G.L. chapter 112, sections 87PP to 87DDD1/2, inclusive, unless the person is compensated by a lender, a mortgage broker, or other Mortgage Loan Originator or by any agent of such lender, mortgage broker, or other Mortgage Loan Originator.
Any person solely involved in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. §101(53D).
(a) Financial Responsibility. An Applicant shall provide the Commissioner with evidence of his/her financial responsibility. Such information shall include an independent credit report obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, which shall be evaluated pursuant to the policies and standards determined by the Commissioner. A person shall have failed to demonstrate that he or she is financially responsible when he or she has shown a disregard in the management of his or her own financial condition; and provided further, that a determination that an individual has not shown financial responsibility may include, but shall not be limited to: (a) current outstanding judgments, except judgments solely as a result of medical expenses; (b) current outstanding tax liens or other government liens and filings; (c) foreclosure within the past 3 years; or (d) a pattern of seriously delinquent accounts within the past 3 years.
(f) Written Examination. An Applicant must pass a qualified written test developed by the NMLS and administered by a test provider approved by the NMLS. An applicant must pass with a test score of not less than 75% correct answers to questions. An applicant may retake the qualified examination 3 consecutive times with each consecutive taking occurring at least 30 days after the preceding examination. Upon failing 3 consecutive written examinations, a person shall not be eligible to sit for another written examination for a period of at least 6 months.
(3) Incomplete Applications. Mortgage loan originator license applications which are missing material information shall be held in an incomplete status for a period of 14 calendar days after written notice to the Applicant specifying the nature of the deficiency. If any such deficiency remains outstanding for more than 14 days, the license application may be considered abandoned by the Applicant and terminated by the Commissioner, and the Applicant shall be required to submit a new application and pay all fees associated therewith.
(2) A mortgage loan originator may be employed by no more than 1 entity.
(3)(a) The Commissioner shall deny an application for a Mortgage Loan Originator license if the Commissioner upon review of the application and any other relevant information, determines that the Applicant has:
2. been convicted of, or pled guilty, admitted to sufficient facts or nolo contendere to, a felony in a domestic, foreign, or military court: (i) during the 7-year period preceding the date of the application for licensing; (ii) at any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering; or (iii) has other convictions or admissions to sufficient facts involving fraud, dishonesty, or a breach of trust, or that the applicant has had any adverse civil judgments involving fraudulent dealings;
1. violated any provision of M.G.L. c. 255F or 209 CMR 41.00 et seq.;
(4) An Applicant whose application has been denied under 209 CMR 41.05(3) may seek judicial review of the denial under M.G.L. c. 255F §4 in accordance with M.G.L. c. 30A, section 14.
Upon the termination of the relationship between an Employing Entity and the Mortgage Loan Originator, the Employing Entity shall notify the Division within five business days after the termination. The Employing Entity shall set forth the reason(s) for termination and shall submit such statement through the NMLS; provided, however, that if the Employing Entity is unable to submit such statement through the NMLS, it may submit the statement in writing directly to the Division.
For a period of one (1) year after the termination of employment or association, the Mortgage Loan Originator may request re-assignment of the mortgage loan originator license to another Entity by submitting an application for a change of sponsorship through the NMLS to the Division and paying the required fee, as determined by the Commissioner.
When the relationship between the Employing Entity and the Mortgage Loan Originator is terminated, the license shall become inactive and the Mortgage Loan Originator shall not be authorized to engage in any residential mortgage loan origination activity unless and until the Mortgage Loan Originator's license has been re-assigned to another Entity and all Division procedures have been followed to re-assign and reactivate such license. A Licensee shall be required to continue to submit a completed renewal application, with the applicable renewal fee, and to complete the required continuing education courses while the license is in an inactive status.
A Mortgage Loan Originator license that has been in an inactive status for over one year shall be cancelled.
The license of a Mortgage Loan Originator shall not be transferable or assignable and shall be valid for a period of not more than one year, with an expiration date of December 31 st of each year.
The Division may renew a Mortgage Loan Originator license if the Licensee fulfills the following requirements:
(b) Continuing compliance with M.G.L. c. 255F and 209 CMR 41.00 et seq.
Failure of the Licensee to timely satisfy the minimum standards for license renewal as set forth in 209 CMR 41.07(2)shall result in the expiration of his/her Mortgage Loan Originator License as of January 1st of that year.
A Mortgage Loan Originator license that has expired may be reinstated by the Commissioner if the individual requests such reinstatement through the NMLS no later than the last day of February of the license year and has satisfied the minimum standards for license renewal as set forth in 209 CMR 41.07(2).
A Licensee shall, annually, complete a minimum of 8 hours of continuing education approved by the NMLS, which shall include, without limitation:
(a) three (3) hours of federal law and regulation;
(b) two (2) hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues;
(d) one (1) hour of Massachusetts state law and regulation, which shall include instruction on Massachusetts consumer protection laws and other related statutes.
A Licensee who is an approved instructor of an approved continuing education course may receive credit to satisfy such Licensee's annual continuing education requirement at the rate of 2 hours credit for every 1 hour taught.
A Licensee shall: (a) only receive credit for a continuing education course in the year in which the course is taken; and (b) not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
(1) It is a prohibited act or practice for a Mortgage Loan Originator to engage in conduct prohibited under 209 CMR 42.12A.
(2) It is a prohibited act or practice for a Mortgage Loan Originator to engage in mortgage loan origination activities after receiving notification of the denial of his/her Mortgage Loan Originator license application or at any time that the license is expired, cancelled, suspended, revoked, or in an inactive status.
(3) It is a prohibited act or practice for a Mortgage Loan Originator to misrepresent his/her license status and type.
(7) It is a prohibited act or practice for a Mortgage Loan Originator to conduct business with or to assist, aid or abet a person in the conduct of business who should be licensed as a Mortgage Loan Originator under M.G.L. chapter 255F or a mortgage lender or mortgage broker under M.G.L. c. 255E, and which the Mortgage Loan Originator knows or should know is an unlicensed Mortgage Loan Originator, mortgage broker or mortgage lender.
(13) It is a prohibited act or practice for a Mortgage Loan Originator to fail to make disclosures as required by M.G.L. chapter 255F, 209 CMR 41.00 et seq. and any other applicable state or federal law or regulations.
(l7) It is a prohibited act or practice for a Mortgage Loan Originator to collect, charge, attempt to collect or charge or use or propose any agreement purporting to collect or charge any fee prohibited by M.G.L. chapter 255F.
(22) A violation of 209 CMR 41.10 shall constitute grounds for the issuance of a cease and desist order or for license suspension, revocation, or refusal to renew under M.G.L. c. 255F, § 11(a); shall constitute grounds for a civil assessment under M.G.L. c. 255F, § 11(b); and shall constitute grounds for a Prohibition Notice under M.G.L. c. 255F, §11(d).
41.11:Challenge process
(3) A Mortgage Loan Originator that is aggrieved by the Commissioner's decision in response to the challenge submitted may appeal said decision within 30 days of the Commissioner's decision, in accordance with M.G.L. chapter 30A.
A Licensee shall disclose his/her Mortgage Loan Originator license number to all clients and/or residential mortgage loan applicants in writing at the time a fee is paid or a mortgage loan application is accepted.
A Licensee's Mortgage Loan Originator license number shall be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including, without limitation, business cards and websites.
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