reglab/statecodes huggingface dataset:
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-114 - Law applicable to business of making flex loans - Licensees legally exercising powers under this chapter not in violation of statutory provisions

The business of making flex loans in accordance with this chapter shall not be subject to or controlled by any other statute governing the imposition of interest, fees or loan charges, including, but not limited to, §
47-14-104
. A licensee shall not have the powers enumerated in this chapter without first complying with the law regulating the particular transaction involved, but licensees legally exercising any of the powers set forth in this chapter shall not be deemed in violation of §§
47-14-112
,
47-14-115
, and
47-14-117
.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-115 - Promulgation of rules - Investigation and examination of licensees - Payment of expenses of investigation or examination - Exception

(a)
The commissioner may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the enforcement of this chapter. A copy of any rule adopted by the commissioner shall be mailed to the principal place of business of each license holder at least thirty (30) days before the date it takes effect.
(b)
To assure compliance with this chapter, the commissioner may examine the relevant business, books and records of any licensee. Further, for the purposes of discovering violations of this chapter and determining whether persons are subject to this chapter, the commissioner may examine or investigate persons licensed under this chapter and persons reasonably suspected by the commissioner of conducting business that requires a license under this chapter by exercising authority that includes, but is not limited to, the power to summon witnesses and examine them under oath or affirmation, and to compel the production of books and records that may be relevant to the examination or investigation.
(c)
(1)
A licensee or unlicensed person subject to the licensing requirements of this chapter, that is examined or investigated in accordance with this chapter, shall pay to the commissioner the reasonable and actual expenses of the investigation or examination. The expenses shall be payable in addition to all other fees, taxes and costs required by law.
(2)
If a supervision fee is established pursuant to §
45-1-118
, then licensees who pay the supervision fee will no longer be required to pay examination expenses pursuant to this subsection (c) for examinations that occur after payment of the supervision fee.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-116 - Grounds for suspension or revocation of license - Revocation or suspension of multiple licenses - Hearing

(a)
The commissioner may, after notice and hearing, suspend or revoke any license if the commissioner finds that the licensee has knowingly or through lack of due care:
(1)
Failed to pay any fees, expenses, or costs imposed by the commissioner under the authority of this chapter;
(2)
Has committed any fraud, engaged in any dishonest activities or made any misrepresentations;
(3)
Has violated any provision of this chapter, any rule issued pursuant to this chapter, or any other law in the course of the licensee's dealings as a licensee;
(4)
Has made a false statement in the application for the license or failed to give a true reply to a question in the application; or
(5)
Has demonstrated incompetency or untrustworthiness to act as a licensee.
(b)
If the reason for revocation or suspension of a licensee's license at any one (1) location is of general application to all locations operated by a licensee, the commissioner may revoke or suspend all licenses issued to a licensee.
(c)
A hearing shall be held on written notice given at least twenty (20) days prior to the date of the hearing and shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-117 - Authorized actions by commissioner upon violation of chapter or rules

If, after notice and opportunity for a hearing, the commissioner finds that a person has violated this chapter, or any rule issued pursuant to this chapter, the commissioner may take the following actions or any combination of such actions:
(1)
Order the person to cease and desist violating the chapter or any rule promulgated pursuant to this chapter;
(2)
Require the refund of any fees collected by the person in violation of this chapter; or
(3)
Order the person to pay to the commissioner a civil penalty of not more than one thousand dollars ($1,000) for each transaction in violation of this chapter or for each day that a violation occurs or continues.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-118 - Grounds to suspend or bar a person from any position of employment, management or control of a licensee

(a)
The commissioner, after notice and opportunity for a hearing, may censure, suspend for a period not to exceed twelve (12) months, or bar a person from any position of employment, management or control of a licensee, if the commissioner finds that the:
(1)
Censure, suspension, or bar is in the public interest and that the person has committed or caused a violation of this chapter or any rule or order of the commissioner; or
(2)
Person has been:
(A)
Convicted or pled guilty to, or pled nolo contendere to, any crime; or
(B)
Held liable in any civil action by final judgment, or any administrative judgment by any public agency, if the criminal, civil or administrative judgment involved any offense reasonably related to the qualifications, functions, or duties of a person engaged in the business of making flex loans pursuant to this chapter.
(b)
Persons suspended or barred under this section are prohibited from participating in any business activity of a licensee and from engaging in any business activity on the premises where a licensee is conducting its business. This subsection (b) shall not be construed to prohibit suspended or barred persons from having their personal transactions processed by a licensee.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-119 - Consent orders - Emergency actions by commissioner

(a)
The commissioner may enter into a consent order at any time with any person to resolve any matter arising under this chapter. A consent order shall be signed by the person to whom it is issued, or a duly authorized representative, and shall indicate agreement to the terms contained in the order. A consent order need not constitute an admission by any person that any provision of this chapter, or any rule or order promulgated or issued under this chapter has been violated, nor need it constitute a finding by the commissioner that the person has violated this chapter, or any rule or order promulgated or issued under this chapter.
(b)
Notwithstanding the issuance of a consent order, the commissioner may seek civil or criminal penalties concerning matters encompassed by the consent order.
(c)
In cases involving extraordinary circumstances requiring immediate action, the commissioner may take any enforcement action authorized by this chapter without providing the opportunity for a prior hearing, but shall promptly afford a subsequent hearing upon an application to rescind the action taken that is filed with the commissioner within twenty (20) days after receipt of the notice of the commissioner's emergency action.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-120 - Complaints against licensees to be filed with commissioner - Investigative powers - Enforcement

(a)
Any person aggrieved by the conduct of a licensee under this chapter in connection with the licensee's regulated activities may file a written complaint with the commissioner who may investigate the complaint.
(b)
In the course of the investigation of the complaint, the commissioner may:
(1)
Subpoena witnesses;
(2)
Administer oaths;
(3)
Examine any individual under oath or affirmation; and
(4)
Compel the production of records, books, papers, contracts or other documents relevant to the investigation.
(c)
If any person fails to comply with a subpoena of the commissioner under this chapter or to testify concerning any matter about which the person may be interrogated under this chapter, the commissioner may petition any court of competent jurisdiction for enforcement.
(d)
The license of any licensee under this chapter who fails to comply with a subpoena of the commissioner may be suspended pending compliance with the subpoena.
(e)
The commissioner shall have exclusive administrative power to investigate and enforce any and all complaints relating to the business of making flex loans filed by any person that are not criminal in nature.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-121 - Events requiring notification by licensee to commissioner

Within fifteen (15) days of the occurrence of any one (1) of the events listed in subdivisions (1)-(6), a licensee shall file a written report with the commissioner describing the event and its expected impact on the activities of the licensee in this state:
(1)
The filing for bankruptcy or reorganization by the licensee;
(2)
The institution of revocation or suspension proceedings against the licensee by any state or governmental authority;
(3)
The denial of the opportunity to engage in the business of making loans by any state or governmental authority;
(4)
Any felony indictment of the licensee or any of its directors, officers or principals;
(5)
Any felony conviction of the licensee or any of its directors, officers or principals; and
(6)
Other events that the commissioner may determine and identify by rule.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-122 - Annual report by licensee - Confidentiality of information

(a)
Each licensee shall file an annual report with the commissioner on the date of the renewal application required in §
45-12-109
containing the following information:
(1)
The names and addresses of persons owning a controlling interest in each licensee;
(2)
The location of all places of business operated by the licensee and the nature of the business conducted at each location;
(3)
The names and addresses of all affiliated entities regulated under this title doing business in this state;
(4)
An audited financial statement, including, but not limited to, a balance sheet, statement of income or loss, and statement of changes in financial position, for the immediately preceding fiscal year end, prepared in accordance with generally accepted accounting principles by a certified public accountant or public accounting firm, neither of which is affiliated with the licensee; and
(5)
If the licensee is a corporation, the names and addresses of its officers and directors; if the licensee is a partnership, the names and addresses of the partners; or if the licensee is a limited liability company, the names and addresses of the board of governors or managers of the limited liability company.
(b)
If the licensee holds two (2) or more licenses or is affiliated with other licensees, a composite report may be filed, but may not be required.
(c)
The reports shall be filed in a form that may reasonably be required by the commissioner and shall be sworn to by a responsible officer of the licensee.
(d)
The information submitted by licensees pursuant to this section shall be afforded the same degree of confidentiality by the department and the commissioner as is applicable to reports filed by industrial loan and thrift companies pursuant to §
45-5-503
.
(e)
The commissioner shall prepare and submit to the governor and general assembly, annually, an analysis and recapitulation of the reports for the preceding calendar year for the purpose of reflecting the general results of operations under this chapter.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-123 - Multi-state automated licensing system

(a)
In addition to any other powers conferred upon the commissioner by law, the commissioner is authorized to require persons subject to this chapter to be licensed through a multi-state automated licensing system. Pursuant to this authority, the commissioner may:
(1)
Promulgate rules that are reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system;
(2)
Establish relationships or enter into agreements that are reasonably necessary for participation in, transition to, or operation of a multi-state automated licensing system. The agreements may include, but are not limited to, operating agreements, information sharing agreements, interstate cooperative agreements and technology licensing agreements;
(3)
Require that applications for licensing under this chapter and renewals of such licenses be filed with a multi-state automated licensing system;
(4)
Require that any fees required to be paid under this chapter be paid through a multi-state automated licensing system;
(5)
Establish deadlines for transitioning licensees to a multi-state automated licensing system. The commissioner has the authority to deny any applications or renewal applications not filed with a multi-state automated licensing system after such deadlines have passed, notwithstanding any dates established elsewhere in this chapter; provided, however, the commissioner shall provide reasonable notice of any transition deadlines to licensees; and
(6)
Take such further actions as are reasonably necessary to give effect to this section.
(b)
Nothing in this section shall authorize the commissioner to require a person who is not subject to this chapter to submit information to, or to participate in, a multi-state automated licensing system that is operated, or participated in, pursuant to this chapter.
(c)
Notwithstanding this section, the commissioner retains full authority and discretion to license persons under this chapter and to enforce this chapter to its fullest extent. Nothing in this section shall be deemed to be a reduction or derogation of that authority and discretion.
(d)
Applicants for and holders of licenses issued under this chapter shall pay all costs associated with submitting an application to or transitioning a license to a multi-state automated licensing system, as well as all costs required by a multi-state automated licensing system for maintaining and renewing any license issued by the commissioner on a multi-state automated licensing system.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-124 - Reserved

Repealed by 2015 Tenn. Acts, ch. 438,s 2, eff. 5/18/2015.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-125 - Disclosure and sharing of information and material provided to multi-state automated licensing system

(a)
In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing:
(1)
The requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to a multi-state automated licensing system, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to such information or material, shall continue to apply to the information or material after the information or material has been disclosed to a multi-state automated licensing system. The information or material may be shared with all state and federal regulatory officials with consumer credit oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal or state law, including the protection available under §
45-1-120
;
(2)
For purposes of subdivision (a)(1), the commissioner is authorized to enter into agreements or sharing agreements with other governmental agencies, the Conference of State Bank Supervisors, or other associations representing governmental agencies as established by rule or order of the commissioner;
(3)
Information or material that is subject to a privilege or confidential under subdivision (a)(1) shall not be subject to:
(A)
Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or any agency of the federal government or the respective state; or
(B)
Subpoena, discovery, or admission into evidence in any private civil action or administrative process, unless with respect to any privilege held by a multi-state automated licensing system applicable to such information or material, the person to whom such information or material pertains waives that privilege, in whole or in part, in the discretion of such person;
(4)
This section shall supersede any inconsistent provisions of title 10, chapter 7, part 5 pertaining to the records open to public inspection; and
(5)
This section shall not apply with respect to information or material relating to publicly adjudicated disciplinary and enforcement actions against persons subject to this chapter that is included in a multi-state automated licensing system for access by the public.
(b)
Notwithstanding any other provision in this chapter, the commissioner shall not use a multi-state automated licensing system for sharing any federal bureau of investigation criminal history background information, unless authorized to do so by the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (
12 U.S.C. §§ 5101-5116
), as amended, or other federal law.
Amended by 2015 Tenn. Acts, ch. 438, s 3, eff. 5/18/2015.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 12 - FLEXIBLE CREDIT ACT (§§ 45-12-101 — 45-12-126) › Section 45-12-126 - Allocation of certain fees

The department may, in the department's sole discretion, allocate a portion of the total amount collected in fees pursuant to §§
45-12-106
and
45-12-109
to the Tennessee financial literacy commission, created by §
49-6-1702
.
Added by 2014 Tenn. Acts, ch. 969,s 1, eff. 1/1/2015.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 1 - GENERAL PROVISIONS (§§ 45-13-101 — 45-13-108) › Section 45-13-101 - Short title

This chapter shall be known and may be cited as the "Tennessee Residential Lending, Brokerage and Servicing Act."
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 1 - GENERAL PROVISIONS (§§ 45-13-101 — 45-13-108) › Section 45-13-102 - Purpose

The origination or offering of financing for residential real property has a direct, valuable and immediate impact upon Tennessee's consumers, Tennessee's economy, the neighborhoods and communities of this state and the housing and real estate industry. The general assembly finds that accessibility to mortgage credit is vital to the state's citizens. It is the purpose of this chapter to ensure a sound system of making residential mortgage loans through the licensing, examination and regulation of mortgage lenders, mortgage loan brokers, mortgage loan servicers and mortgage loan originators. It is also the purpose of this chapter to carry out the purposes and to be compliant with the requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (
12 U.S.C. § 5101
et seq.).
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 1 - GENERAL PROVISIONS (§§ 45-13-101 — 45-13-108) › Section 45-13-103 - Administrative authority

The commissioner is granted broad administrative authority to administer, interpret and enforce this chapter and to promulgate reasonable substantive and procedural rules and regulations to carry out the purposes of this chapter.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 1 - GENERAL PROVISIONS (§§ 45-13-101 — 45-13-108) › Section 45-13-104 - Provisions remedial

This chapter is declared to be remedial in nature, and this chapter shall be liberally construed to effectuate the purpose of this chapter.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 1 - GENERAL PROVISIONS (§§ 45-13-101 — 45-13-108) › Section 45-13-107 - Lost licenses - Substitutions

In the event that a license issued under this chapter is lost or destroyed, the person to whom the license was issued may, upon payment of a nonrefundable fee prescribed by the commissioner, obtain a substitute license upon furnishing proof satisfactory to the commissioner that the license has become lost or destroyed.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 1 - GENERAL PROVISIONS (§§ 45-13-101 — 45-13-108) › Section 45-13-108 - Filing of written report with commissioner - Events impacting activities of licensee

Within fifteen (15) days of the occurrence of any one (1) of the following events, a licensee shall file a written report with the commissioner describing the event and its expected impact on the activities of the licensee in this state:
(1)
The filing for bankruptcy or reorganization by the licensee;
(2)
The institution of revocation or suspension proceedings against the licensee by any state or governmental authority;
(3)
The denial of the opportunity to engage in business by any state or governmental authority;
(4)
Any felony indictment of the licensee or any of its officers, directors or principals;
(5)
Any felony conviction of the licensee or any of its officers, directors or principals; and
(6)
Other events that the commissioner may determine and identify by rule.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-204 - Surety bond required

(a)
At the time of filing an application for a license under §
45-13-201(a)
, the applicant shall also file with the commissioner a surety bond payable to the state, in a form to be approved by the commissioner, for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the licensee. The bond must be issued by a bonding company qualified to do business in this state.
(b)
For mortgage loan servicers, the surety bond shall be maintained in the amount of two hundred thousand dollars ($200,000).
(c)
For mortgage lenders and mortgage loan brokers, the surety bond shall provide coverage for each mortgage loan originator in an amount in accordance with subsection (d); provided, however, that for the first calendar year of licensing in this state, or for calendar years 2009 and 2010, or both, as applicable, the surety bond for mortgage lenders shall be in the amount of two hundred thousand dollars ($200,000), and the surety bond for mortgage loan brokers shall be in the amount of ninety thousand dollars ($90,000).
(d)
The penal sum of the surety bond of any mortgage lender or mortgage loan broker shall be maintained in an amount that reflects the dollar amount of loans originated, as determined by the commissioner.
(e)
The bond shall be maintained for not less than twenty-four (24) months following the expiration, revocation, suspension or surrender of the license.
(f)
Immediately upon recovery upon any action on the bond, the licensee shall file a new bond to fulfill the requirements of this section.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-205 - Change of address or officers - Annual report including past officers and directors

(a)
Each licensed mortgage lender, mortgage loan broker and mortgage loan servicer shall notify the commissioner five (5) days prior to any change in its principal place of business.
(b)
Each licensed mortgage lender, mortgage loan broker and mortgage loan servicer shall notify the commissioner in writing within fourteen (14) days of any change of its president, chief executive officer, treasurer or chief financial officer or among the general partners or partners.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-206 - Records and financial statements - Deposits - Disclosure

(a)
Every licensed mortgage lender, mortgage loan broker and mortgage loan servicer shall keep and maintain at all times in its principal place of business correct and complete records of all residential mortgage loan transactions arranged by the licensee.
(b)
The financial statements furnished to the commissioner by each licensed mortgage lender, mortgage loan broker and mortgage loan servicer shall be prepared in accordance with generally accepted accounting principles consistently applied.
(c)
If a deposit is required in connection with an application for a residential mortgage loan, there shall be a written agreement, signed by the parties, pertaining to the disposition of the deposit, whether the loan is finally consummated or not, and the term for which the agreement is to remain in force before return of the deposit for nonperformance can be required. A licensee who receives deposits shall preserve and on request make available to the commissioner all information related to the deposits. The licensee shall further preserve all agreements between the parties involved in the transaction and all contracts, agreements and instructions pertaining to the transaction.
Acts 2009 , ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-207 - Preservation of records - Reproduction - Maintenance location

(a)
All books and records required to be preserved by any regulation of the commissioner or required by any federal statute, regulation or regulatory guideline, as applicable to each licensed mortgage lender, mortgage loan broker and mortgage loan servicer, shall be preserved and made available to the commissioner, as provided in this chapter, for the time that the commissioner may by rule or regulation require, not to exceed twenty-five (25) months on all rejected applications and not to exceed twenty-four (24) months on loans paid in full. The licensee may cause any or all records at any time in its custody to be reproduced or preserved by itself or by any other person who agrees in writing to submit its operations to the examination of the commissioner to the extent that the operations directly affect the recordkeeping, by any microphotographic process, electronic or mechanical data storage technique or any other means. Any record reproduced or preserved by those processes, techniques or means shall have the same force and effect as the original record and be admitted into evidence equally with the original.
(b)
Any licensee, after receiving the prior written approval of the commissioner, may maintain records at any location within or outside of the state.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-208 - Minimum information

The commissioner may prescribe by rules and regulations the minimum information to be shown in the books, accounts and records of each licensee, so that the books, accounts and records will enable the commissioner to determine compliance with this chapter and with the rules and regulations lawfully made under this chapter.
Amended by 2017 Tenn. Acts, ch. 122,s 1, eff. 7/1/2017.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-209 - Statement of account

Upon written request from the mortgagor, the holder of a residential mortgage loan shall deliver to the mortgagor, within fourteen (14) days from receipt of the written request, a statement of the mortgagor's account showing the date and amount of all payments credited to the account within the previous twelve-month period and the total unpaid balance. Not more than two (2) statements shall be required in any twelve-month period. If the holder of a residential mortgage loan forwards to the mortgagor an annual payment and escrow analysis, or other such analysis, the submission of the analysis to the mortgagor shall constitute a statement of the mortgagor's account.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-210 - Change of control

(a)
A change in control of a person licensed as a mortgage lender, mortgage loan broker, and/or mortgage loan servicer under this chapter shall require thirty (30) days' prior written notice to the commissioner. In the case of a publicly traded corporation, notification shall be made in writing within thirty (30) days of a change or acquisition of control of a licensee.
(b)
Upon notification of a change in control, the commissioner may require information deemed necessary to determine whether an application for a license is required. The commissioner may waive the filing of an application if, in the commissioner's discretion, the change in control does not pose any risk to the interests of the public.
(c)
Whenever control is acquired or exercised in violation of this section, the license shall be deemed revoked as of the date of the unlawful acquisition of control. The licensee, or its controlling person, shall surrender the license to the commissioner on demand.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-211 - Managing principals and branch managers

(a)
Each mortgage lender or mortgage loan broker licensed under this chapter shall have a managing principal who operates the business under that person's full charge, control and supervision. Each principal and branch office of a mortgage lender or mortgage loan broker shall have a manager. The mortgage lender or mortgage loan broker shall have the responsibility of ensuring that the manager has sufficient experience in the mortgage lending industry to operate the business of the mortgage lender or mortgage loan broker lawfully. The managing principal for a mortgage lender's or mortgage loan broker's business may also serve as the branch manager of one (1) of the mortgage lender's or mortgage loan broker's branch offices. Any individual mortgage lender or mortgage loan broker who operates a sole proprietorship shall be considered a managing principal for purposes of this chapter.
(b)
Each mortgage lender or mortgage loan broker shall file a form as prescribed by the commissioner indicating the business's designation of managing principal and branch manager for each branch and each individual's acceptance of the responsibility.
(c)
Each mortgage lender or mortgage loan broker shall notify the commissioner in writing within fourteen (14) business days of any change in its managing principal or branch manager designated for each branch.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 2 - LICENSING OF MORTGAGE LENDERS, MORTGAGE LOAN BROKERS AND MORTGAGE LOAN SERVICERS (§§ 45-13-201 — 45-13-212) › Section 45-13-212 - Work from remote locations

(a)
As used in this section, "remote location" means a location at which the employees of a licensee may conduct business other than a licensed location, the licensee's principal place of business, or a licensed branch office.
(b)
Except as provided in subsection (c), this chapter does not prohibit an employee of a licensee from performing licensable activities at the employee's residence or another remote location in accordance with the licensee's written supervisory policies and procedures.
(c)
A licensee may permit an employee to work at a remote location only under the following conditions:
(1)
Access to licensee's platforms and customer information are in accordance with the licensee's comprehensive written information security plan;
(2)
In-person customer interactions do not occur at the employee's residence unless the residence is a licensed location;
(3)
Physical records are not maintained at the remote location;
(4)
Customer interactions, data, and conversations about consumers comply with federal and state information security requirements, including
15 U.S.C. § 6802
and the Safeguards Rule established by the federal trade commission ( 16 CFR Part 314 );
(5)
The licensee employs appropriate risk-based monitoring and oversight processes and the employee that works from the remote location agrees to comply with the licensee's established processes;
(6)
The licensee, at least once annually, certifies that the employee engaging in remote activity meets the appropriate standards and safeguards to continue remote activity; and
(7)
If the employee is a mortgage loan originator, the National Mortgaging Licensing System (NMLS) record of the originator that works from the remote location designates the licensee's principal place of business as the originator's licensed location unless the originator elects to choose a licensed branch office as the originator's licensed location.
Added by 2022 Tenn. Acts, ch. 815, s 1, eff. 7/1/2022.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 3 - MORTGAGE LOAN ORIGINATORS (§§ 45-13-301 — 45-13-308) › Section 45-13-304 - Prelicensing education of loan originators

(a)
In order to meet the prelicensing education requirement referred to in §
45-13-302(c)(4)
, an individual 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;
(2)
Three (3) hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and
(3)
Two (2) hours of training related to lending standards for the nontraditional mortgage product marketplace.
(b)
For purposes of subsection (a), prelicensing education courses shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. Review and approval of a prelicensing education course shall include review and approval of the course provider.
(c)
Nothing in this section shall preclude any prelicensing education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract or any subsidiary or affiliate of the employer or entity.
(d)
Prelicensing education may be offered either in a classroom, online or by any other means approved by the Nationwide Mortgage Licensing System and Registry.
(e)
The prelicensing education requirements approved by the Nationwide Mortgage Licensing System and Registry in subdivisions (a)(1)-(3) for any state shall be accepted as credit toward completion of prelicensing education requirements in this state.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 3 - MORTGAGE LOAN ORIGINATORS (§§ 45-13-301 — 45-13-308) › Section 45-13-305 - Testing of loan originators

(a)
In order to meet the written test requirement referred to in §
45-13-302(c)(5)
, an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.
(b)
A written test shall not be treated as a qualified written test for purposes of subsection (a) unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:
(1)
Ethics;
(2)
Federal law and regulation pertaining to mortgage origination;
(3)
State law and regulation pertaining to mortgage origination; and
(4)
Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace and fair lending issues.
(c)
Nothing in this section shall prohibit a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(d)
Minimum Competence:
(1)
An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five percent (75%) correct answers to questions;
(2)
An individual may retake a test three (3) consecutive times with each consecutive taking occurring at least thirty (30) days after the preceding test;
(3)
After failing three (3) consecutive tests, an individual shall wait at least six (6) months before taking the test again; and
(4)
A licensed mortgage loan originator who fails to maintain a valid license for a period of five (5) years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 3 - MORTGAGE LOAN ORIGINATORS (§§ 45-13-301 — 45-13-308) › Section 45-13-306 - Standards for mortgage loan originator license renewal

(a)
The minimum standards for license renewal for mortgage loan originators shall include the following:
(1)
Continues to meet the minimum standards for licensure under §
45-13-302(c)
;
(2)
Satisfies the annual continuing education requirements described in §
45-13-307
; and
(3)
Pays a nonrefundable renewal fee of one hundred dollars ($100), which amount may be decreased or increased by rule of the commissioner.
(b)
To renew a mortgage loan originator license for the following calendar year, the commissioner must receive on or before December 31 a completed renewal application and fee meeting the requirements of subsection (a). If the renewal requirements are not timely met, the mortgage loan originator license shall expire at the close of business on December 31.
(c)
Should the commissioner deny a renewal application, the applicant may make written demand to the commissioner for a hearing on the question of whether the license should be renewed; provided, that the request for hearing be received by the commissioner within thirty (30) days from the date of denial; and provided, further, that the failure to timely request a hearing shall cause the license to be automatically revoked without further notice or hearing at the end of the thirty-day period. If a hearing is timely requested under this subsection (c), it shall be conducted under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and the license shall not expire until resolution of the appeal in accordance with the Uniform Administrative Procedures Act.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 3 - MORTGAGE LOAN ORIGINATORS (§§ 45-13-301 — 45-13-308) › Section 45-13-307 - Continuing education for mortgage loan originators

(a)
In order to meet the annual continuing education requirements referred to in §
45-13-306(a)(2)
, a licensed mortgage loan originator shall complete at least eight (8) hours of education approved in accordance with subsection (b), which shall include at least:
(1)
Three (3) hours of federal law and regulations;
(2)
Two (2) hours of ethics, which shall include instruction on fraud, consumer protection and fair lending issues; and
(3)
Two (2) hours of training related to lending standards for the nontraditional mortgage product marketplace.
(b)
For purposes of subsection (a), continuing education courses shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. Review and approval of a continuing education course shall include review and approval of the course provider.
(c)
Nothing in this section shall preclude any education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the mortgage loan originator or an entity that is affiliated with the mortgage loan originator by an agency contract or any subsidiary or affiliate of the employer or entity.
(d)
Continuing education may be offered either in a classroom, online or by any other means approved by the Nationwide Mortgage Licensing System and Registry.
(e)
A licensed mortgage loan originator:
(1)
May only receive credit for a continuing education course in the year in which the course is taken; and
(2)
May not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
(f)
A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of two (2) hours credit for every one (1) hour taught.
(g)
A person having successfully completed the education requirements approved by the Nationwide Mortgage Licensing System and Registry in subdivisions (a)(1)-(3) for any state shall be accepted as credit toward completion of continuing education requirements in this state.
Acts 2009, ch. 499, § 8.
2023 Tennessee Code › Title 45 - BANKS AND FINANCIAL INSTITUTIONS (§§ 45-1-101 — 45-20-111) › Chapter 13 - TENNESSEE RESIDENTIAL LENDING, BROKERAGE AND SERVICING ACT (§§ 45-13-101 — 45-13-506) › Part 3 - MORTGAGE LOAN ORIGINATORS (§§ 45-13-301 — 45-13-308) › Section 45-13-308 - Provisional mortgage loan originator license

Notwithstanding any provision of this chapter or the Industrial Loan and Thrift Companies Act, compiled in chapter 5 of this title, to the contrary, the commissioner is authorized to issue a provisional mortgage loan originator license to any individual who has not completed the prelicensing education requirements set forth in §
45-13-304
or passed a written test that meets the test requirement described in §
45-13-305
; provided, that the individual meets all other requirements for a license under this part; and provided, further, that no provisional mortgage loan originator license shall be issued after or be valid after July 30, 2010. A provisional mortgage loan originator license shall for all purposes be considered a mortgage loan originator license issued under this part, except that a provisional license shall expire on July 30, 2010, unless the individual holding the license has by such date, completed the prelicensing education requirements set forth in §
45-13-304
and passed a written test that meets the test requirement described in §
45-13-305
. If these education requirements are timely accomplished, and so long as the individual has furnished fingerprints to the Nationwide Mortgage Licensing System and Registry if requested to do so under §
45-13-302(f)
, the provisional nature of the license shall be removed, and the license shall not expire until the end of the calendar year in which the last of all the requirements have been met. Subject to the July 30, 2010, expiration date, a provisional mortgage loan originator license issued in 2009 may be renewed for 2010 pursuant to §
45-13-306
without satisfying the annual continuing education requirements described in §
45-13-307
.
Acts 2009, ch. 499, § 8.