reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055e - Pre-licensing educational requirements

(a) Every applicant for a mortgage loan originator license shall complete at least twenty (20) hours of pre-licensing education approved by the nationwide mortgage licensing system and registry which shall include, at least:
(1) Three (3) hours of federal laws 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 nontraditional mortgage product market.
(b) All pre-licensing education courses shall be reviewed and approved by the nationwide mortgage licensing system and registry based on reasonable standards. The review and approval of said courses shall include the review and approval of the provider of the course.
(c) Nothing in this section shall preclude any pre-licensing educational course as approved by the nationwide mortgage licensing system and registry that is provided by the employer of the applicant or by an entity affiliated to the applicant by an agency contract, or any subsidiary or affiliate of such employer or entity.
(d) Pre-licensing education courses may be offered at any place or through any means approved by the nationwide mortgage licensing system and registry.
(e) Pre-licensing education courses approved by the nationwide mortgage licensing system and registry and offered in any jurisdiction shall be accredited in Puerto Rico for purposes of the issuance of this license.
History —Dec. 30, 2010, No. 247, § 5.6, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055f - Testing prior to the issuance of the license

(a) In order to meet the written test requirements referred to in § 3055a of this title, the applicant shall pass a qualified written test developed by the nationwide mortgage licensing system and registry and administered by a test provider, approved by the aforementioned entity based upon reasonable standards.
(b) A written test shall be treated as a qualified written test provided that it adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including:
(1) Ethics;
(2) Federal law and regulations pertaining to residential mortgage origination;
(3) Puerto Rico law and regulations pertaining to residential mortgage origination;
(4) Federal and Puerto Rico law and regulations, including instruction on fraud, consumer protection, the nontraditional residential mortgage marketplace, and fair lending issues.
(c) Nothing in this section shall prevent an examination provider approved by the nationwide mortgage licensing system and registry from providing a test at the location of the employer of the applicant, 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 a mortgage loan originator business.
(d) Minimum competence:
(1) An applicant shall pass the qualified written test if he/she obtains a minimum of seventy-five percent (75%) of correct answers to the questions.
(2) An applicant may retake the test up to three (3) consecutive times, provided that least thirty (30) days elapsed between each preceding test.
(3) After failing three (3) consecutive tests, the applicant shall once again have to meet the requirements established in subsection (a) of § 3055e of this title, and wait at least six (6) months before retaking the test.
(e) A licensed mortgage loan originator who fails to maintain a valid license for a period of five (5) or more years shall retake the test, notwithstanding the time during which said individual has been a registered mortgage loan originator.
History —Dec. 30, 2010, No. 247, § 5.7, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055g - License renewal

In addition to the provisions of § 3052d of this title, every license renewal application for mortgage loan originators shall include the following:
(a) Evidence that the mortgage loan originator continues to meet the minimum license requirements under § 3055a of this title;
(b) evidence that the mortgage loan originator has satisfied the annual continuing education requirements described in § 3055h of this title;
(c) payment of the annual license fee in the amount of one hundred dollars ($100), as well as any other fees imposed by the nationwide mortgage licensing system and registry.
History —Dec. 30, 2010, No. 247, § 5.8, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055h - Continuing education for mortgage loan originators

(a) All licensed mortgage loan originators shall complete at least eight (8) hours of continuing education per year, approved by the nationwide mortgage licensing system and registry, which shall include, at least, the following:
(1) Three (3) hours of Federal laws and regulations;
(2) Two (2) hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; and[sic]
(3) Two (2) hours of training related to lending standards for the nontraditional residential mortgage marketplace;
(4) One (1) hour related to any undefined training and instruction regarding loan origination.
(b) All continuing education courses shall be reviewed and approved by the nationwide mortgage licensing system and registry based upon reasonable standards. The review and approval of a continuing education course shall include the review and approval of the course provider.
(c) All licensed mortgage loan originators:
(1) May only receive credit for a continuing education course in the year in which the courses were taken; and
(2) may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
(d) A mortgage loan originator who is also an instructor of an approved continuing education course may receive credit for his/her own mortgage loan originator license at a rate of two (2) credit hours for every hour taught.
(e) Continuing education may be offered in a venue or by any other means approved by the nationwide mortgage licensing system and registry.
(f) Continuing education courses approved by the nationwide mortgage licensing system and registry in any jurisdiction shall be accredited in Puerto Rico for purpose of license renewal.
(g) A licensed mortgage loan originator who fails to apply for license renewal shall meet the continuing education requirements for the last year in which the license was held prior to applying for a new license.
(h) 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 licensee, an entity affiliated to the licensee by an agency contract, or any subsidiary or affiliate of such employer or entity.
History —Dec. 30, 2010, No. 247, § 5.9, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055i - Savings and credit unions not insured by a federal banking agency

Savings and credit unions not insured by a federal banking agency, but that employ mortgage loan originators shall register said originators with the nationwide mortgage licensing system and registry, as provided in Section 1507 (a)(2) of Title V of Public Law 110-289, known as the “Secure and Fair Enforcement for Mortgage Licensing Act of 2008” or “S.A.F.E. Mortgage Licensing Act of 2008.”
With respect to its application to the savings and credit unions, and the businesses and operations thereof, any provisions of this chapter shall be implemented by COSSEC to the extent applicable.
History —Dec. 30, 2010, No. 247, § 5.10, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055j - Report to the nationwide mortgage licensing system and registry

The Commissioner shall periodically report violations of this subchapter, as well as corrective measures and any other relevant information, to the nationwide mortgage licensing system and registry, so as to comply with the provisions of applicable privacy acts.
History —Dec. 30, 2010, No. 247, § 5.11, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055k - Prohibitions

No person bound by the provisions of this subchapter shall:
(a) Employ any scheme or artifice, either directly or indirectly, to defraud or deceit borrowers or lenders, or to defraud any other person;
(b) participate in any unfair or fraudulent practice against any person;
(c) obtain any property through fraud or deceit;
(d) request or enter into a contract with a borrower that sets forth, in essence, that the individual or persons subject to this chapter may obtain fees or commissions for making their “best efforts” to obtain a loan, even though the borrower is not finally granted the loan;
(e) apply for, advertise, or enter into a contract with specific financing interest rates, types, or financial terms and conditions unless the same are available at the time of the application, advertisement, or contract;
(f) conduct any business regulated by this subchapter without holding a valid license pursuant to the provisions set forth herein, or help or assist any person in the course of his/her business under this subchapter without a valid license pursuant to the provisions herein established;
(g) refuse to duly orient a client as required by this chapter and any other federal or Puerto Rico law, including regulations to such effect;
(h) fail to comply with this subchapter or with the rules and regulations promulgated by virtue thereof, or fail to comply with any other federal or Puerto Rico law, including rules and regulations promoted thereunder and applicable to any business conducted or authorized under this subchapter;
(i) make any kind of deceitful manifestation or misrepresentation;
(j) forge or induce others to forge documents that are part of a transaction;
(k) knowingly make any false statement or intentionally omit any material fact regarding any information or report submitted to a government agency or to the nationwide mortgage licensing system and registry, or with respect to any investigation conducted by the Commissioner or any other government entity;
(l) make any payment, threat, or promise, either directly or indirectly, to any person with the intent to influence their personal judgment regarding a residential mortgage loan, or make any payment, threat, or promise, either directly or indirectly, to any appraiser of a property in order to influence the personal judgment of such appraiser with respect to the value of the property;
(m) collect, charge, or attempt to collect, charge, use, or propose any agreement with the intent to collect or impose any charge or fee prohibited by this chapter;
(n) fail to provide clients with a substantially accurate itemization of the costs of the mortgage loan before and after the granting thereof; and
(o) fail to comply with the applicable provisions of the Insurance Code.
History —Dec. 30, 2010, No. 247, § 5.12, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter V - Mortgage Loan Originators (§§ 3055 — 3055l) › § 3055l - Term to obtain a license

As of July 31st, 2010, every mortgage loan originator is required to be licensed.
History —Dec. 30, 2010, No. 247, § 5.13, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter VI - Powers of the Commissioner (§§ 3056 — 3056d) › § 3056a - Examinations

(a) The Commissioner may conduct examinations or audits of a licensee’s operations at his/her office. The Commissioner may also conduct special examinations whenever necessary in his/her judgment.
(b) Every financial institution licensed under this chapter shall be required to make accounting books, files, records, documents, and any other data deemed necessary available for examination by the Commissioner. Furthermore, it shall allow the Commissioner or his/her representative free access to its properties, offices, and operation sites to carry out these tasks.
(c) The Commissioner shall impose an inspection fee of two hundred dollars ($200) per day or fraction thereof for each inspector or investigator that participates in each inspection, plus any transportation, per diem, and lodging expenses incurred by the same, according to the rules established for officials and employees of the Government of Puerto Rico. The same shall be paid immediately through manager’s or certified check or bank or postal money order drawn to the name of the Secretary of the Treasury.
(d) Should the Commissioner deem it necessary, an inspection may be conducted outside of Puerto Rico; in such case, the licensee shall pay the inspection fee established in subsection (c) of this Section, plus all other reasonable expenses incurred in said inspection, including lodging and transportation expenses.
History —Dec. 30, 2010, No. 247, § 6.2, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter VI - Powers of the Commissioner (§§ 3056 — 3056d) › § 3056b - Penalties

The Commissioner is hereby authorized to:
(a) Impose and collect administrative fines of at least one hundred dollars ($100) but not greater than ten thousand dollars ($10,000) for each violation of the provisions of this chapter or rules and regulations that may be promulgated thereunder;
(b) impose restitution or the reimbursement of payments received in contravention with the provisions of this chapter or any rules and regulations that may be promulgated thereunder, or any other remedy that he/she deems necessary to attain the purposes of this chapter;
(c) impose and collect administrative fines of at least one hundred dollars ($100) but not greater than five thousand dollars ($5,000) for each day that the person engaged in mortgage loan lending, brokerage, or origination fails to meet the requirements established or comply with the orders issued by the Commissioner;
(d) when the nature of the violation of this chapter or the rules, regulations, orders, or resolutions issued by the Commissioner so justify it, the Commissioner may initiate the corresponding judicial action against the offender, in addition to imposing the administrative fines authorized in the preceding subsections. Any natural or juridical person that violates the provisions of this chapter or the rules and regulations that may be promulgated thereunder, or the orders and resolutions issued by the Commissioner pursuant to this chapter, shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of up to five thousand dollars ($5,000) or imprisonment for up to six (6) months, or both penalties at the discretion of the court, except for a violation of clauses (2), (5), (7), (8), (9), and (18) of subsection (a) of § 3053f of this title; subsections (c), (f), (h), (i), and (m) of § 3054f of this title; and subsections (c) and (j) of § 3055k of this title, which shall constitute a felony, punished by a fine not greater than ten thousand dollars ($10,000) for each violation or a fixed penalty of ten (10) years of imprisonment, or both penalties at the discretion of the court. The penalty of imprisonment for a felony may be increased to a maximum of twelve (12) years if there are aggravating circumstances; if there are mitigating circumstances, it may be reduced to a minimum of six (6) years. In any case, the court may impose, at its discretion, the penalty of restitution or a fine, in addition to the fixed penalty of imprisonment.
(e) Every transaction in violation of the provisions of this chapter shall constitute a separate violation and, as such, every violation shall be punished individually.
History —Dec. 30, 2010, No. 247, § 6.3, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter VI - Powers of the Commissioner (§§ 3056 — 3056d) › § 3056c - Information confidentiality

(a) Except as otherwise provided in Section 1512 of Title V of Public Law 110-289, known as the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 or S.A.F.E. Mortgage Licensing Act of 2008, the requirements of any federal or Puerto Rico law regarding the privacy or confidentiality of any information or material furnished to the nationwide mortgage licensing system and registry, and any other privilege arising from any federal or Puerto Rico law, including the rules of any federal or Puerto Rico court regarding said information or material shall continue to apply to the information or material after it has been disclosed to the nationwide mortgage licensing system and registry. Said information or material may be shared with all federal and Puerto Rico agency officials authorized to oversee the residential mortgage industry, without losing the protections of privilege or the protections of confidentiality provided by federal and Puerto Rico laws.
(b) The information or material subject to privilege or confidentiality under subsection (a) of this section shall not be subject to:
(1) Disclosure under any federal or Puerto Rico law that regulates disclosure to the public of information under the custody of a federal or Puerto Rico government agency or official;
(2) discovery or admittance into evidence in any private civil action or administrative procedure, unless the person to whom such information or material pertains waives said privilege, in whole or in part, at his/her discretion.
(c) Any provision of law related to the disclosure of confidential information, or any information or material described in subsection (a) of this section that is inconsistent with subsection (a), shall be substituted by the provisions of this section to the extent that the law may provide for less confidentiality or privileges than this chapter.
(d) This section shall not apply to information or material related to the employment history of any licensee, or orders issued by the Commissioner to a licensee, that are included in the nationwide mortgage licensing system and registry for public access.
History —Dec. 30, 2010, No. 247, § 6.4, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Subchapter VI - Powers of the Commissioner (§§ 3056 — 3056d) › § 3056d - Update of other applicable laws or regulations

The Commissioner is hereby directed to update, within one hundred twenty (120) days after the approval of this act, any and all of the regulations amended or repealed by this chapter, as appropriate. Any regulation that could be required from the Office of the Commissioner of Financial Institutions by this chapter or other acts in effect, shall contain, at the time of their promulgation, the provisions of §§ 2101 et seq. of Title 3, known as the “Uniform Administrative Procedures Act”, as well as those of §§ 2251 et seq. of Title 3, known as the “Small Business Administrative and Regulatory Flexibility Act”. The Commissioner shall file a copy of those regulations with the Secretary of the Senate and the Clerk of the House of Representatives, as well as with the Department of State, for information purposes and the corresponding process.
History —Dec. 30, 2010, No. 247, § 6.5, eff. 120 days after Dec. 30, 2010.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3061 - Definitions

For purposes of this chapter, the following terms shall have the meaning stated hereinbelow:
(a) Reverse mortgage.— A loan secured by the equity in a real property that serves as main residence, which does not require repayment of principal or interest until the borrower no longer uses such housing unit as his/her main residence or breaches any of the terms and conditions set forth in the contract.
(b) Lending institution or Lender.— Any bank or lending institution organized or operating under the laws of Puerto Rico, the United States or any state or territory of the United States or a foreign country, which offers and originates reverse mortgage loans. It shall also include savings and credit unions that operate under the pertinent laws, and which offer and originate reverse mortgage loans.
(c) Applicant or borrower.— Any natural person 62 years of age or older who has an interest as an individual or as part of a community property over the property that secures the reverse mortgage loan.
(d) Counselor.— Any entity duly authorized by the U. S. Department of Housing and Urban Development (HUD) or any individual counselor duly accredited by HUD to provide information sessions as required for reverse mortgage applicants. Counselors shall be independent from financial institutions and be free from conflicts of interest.
History —July 29, 2011, No. 164, § 2, eff. 60 days after July 29, 2011; July 20, 2012, No. 143, § 1.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3063 - Financial institution; must refer to counselor for information session

Before accepting a completed application for a reverse mortgage or charging any fees, the financial institution shall:
(a) Refer the applicant to several counseling agencies, and provide him/her with a list of the agencies duly certified by the United States Department of Housing and Urban Development.
(b) Hand the applicant a check list with the ten (10) topics that must be covered in the information session, listed below in § 3064 of this title.
(c) Receive a certification from the applicant or his/her authorized representative attesting that he/she has attended an information session provided by a counselor. Such certification must state that all topics appearing in the check list were covered and shall be signed by the applicant and the counselor, and also state the date on which such information session was held, as well as the name, address, and telephone number of the counselor and the applicant. The institution shall keep a true and exact copy accessible and in a format that can be reproduced during the term of the mortgage.
History —July 29, 2011, No. 164, § 4, eff. 60 days after July 29, 2011; July 20, 2012, No. 143, § 2.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3064 - Information session; requirements

The following topics must be covered in the information session:
(a) An evaluation of the loan’s advantages and disadvantages specific to the applicant.
(b) An inventory of the finances, assets, liabilities, necessary expenses and income, and of all other options available to the applicant in terms of housing, social services, healthcare, and financial options.
(c) Information about all other financial alternatives available to take advantage of the property’s value, such as selling or taking on a second mortgage or a personal loan.
(d) An explanation of the implications of taking on a reverse mortgage, including loan-related expenses and costs.
(e) Information about consequences in terms of taxes that the reverse mortgage could have, the way in which it could affect the borrower’s eligibility for assistance under Commonwealth and Federal Government programs, and the impact on the rights of heirs.
(f) A special warning stating all the circumstances that could prompt mortgage foreclosure, such as abandonment of property by the borrower due to a medical condition or other unforeseen event or failure to comply with the duty to keep the property in good condition, among others.
(g) An explanation of the process.
(h) An opportunity for the applicant to ask questions and address any doubts.
(i) A notice to the applicant stating that, after receiving a copy of the signed reverse mortgage contract and before the seven (7)-day cooling-off period set forth in § 3066 of this title elapses, the applicant is entitled to obtain further information and analysis from the counselor.
(j) A warning stating that under no circumstances may any third party, whether a relative or friend of the applicant, coerce such applicant to take on a reverse mortgage loan, and that any person acting thus is committing the crime of fraud.
(k) Any other matter covered under the regulations of the United States Department of Housing and Urban Development or which may be included from time to time in any applicable Commonwealth or federal laws or regulations.
History —July 29, 2011, No. 164, § 5, eff. 60 days after July 29, 2011.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3065 - Counselor; qualifications

(a) All counselors must be duly certified by the United States Department of Housing and Urban Development (HUD) after having passed the corresponding tests administered under the HUD-HECM National Counselors Network.
(b) Financial institutions shall obtain an updated list of counseling agencies from the webpage of the United States Department of Housing and Urban Development in order for them to provide it to all applicants. If for any reason the list is not available on said webpage, they shall contact the United States Department of Housing and Urban Development to obtain it.
History —July 29, 2011, No. 164, § 6, eff. 60 days after July 29, 2011; July 20, 2012, No. 143, § 3.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3066 - Cooling-off period; right to terminate

(a) The applicant, upon having agreed in writing to the offer made by the financial institution in connection with a reverse mortgage loan, shall have a cooling-off period of seven (7) days, during which period he/she may not be forced to move forth the loan or be demanded to close the transaction. The financial institution shall furnish to the applicant a written notice to inform him/her of such cooling-off period, which notice must be attached to a separate document in legible type (at least 12 points). The applicant may not waiver the provisions of this section.
A borrower shall have the right to terminate a reverse mortgage loan within a three (3)-day term as of the date of closing, as established in the Code of Federal Regulations, Rule Z, adopted under the Truth in Lending Act.
History —July 29, 2011, No. 164, § 7, eff. 60 days after July 29, 2011.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3067 - Financial institution; annual information required

(a) When closing a reverse mortgage, the lender shall provide the borrower with the name of the lender’s employee or agent designated for the specific purpose of addressing any questions or doubts of the borrower in connection with the reverse mortgage. The lender shall update this information annually or whenever any change takes place regarding the employee or agent designated by the lender to address questions or doubts.
(b) At the end of each calendar year and upon expiration of the loan’s term, the lender shall issue to the borrower, free of charge, an account statement, which shall be available in Spanish and English, on the mortgage’s activity corresponding to the preceding twelve (12) months or to the period elapsed since the last account statement was issued. The statement shall include the following:
(1) The total outstanding balance at the beginning of the account statement period.
(2) Fund disbursements made to the borrower.
(3) The total amount of interest added to the loan’s outstanding balance.
(4) The amount of property taxes, insurance premiums, and other fees paid by the lender.
(5) Payments made to the lender.
(6) The total outstanding balance of the mortgage as of the date of the statement.
(7) The amount of the remainder available to the borrower in cases of reverse mortgages in which disbursements have been withheld to be paid in one or two lump sum amounts.
(c) In the event that the financial institution which originated the loan sells such loan to another institution, it shall be the duty of the originating institution to ensure that the new institution is able to provide annual information and customer service resources to the borrower in the Spanish language.
History —July 29, 2011, No. 164, § 8, eff. 60 days after July 29, 2011.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3068 - Potentially false or deceptive representations about reverse mortgages

Persons or entities which recommend, process or sell reverse mortgage loans for direct or indirect financial gain, shall, during the process of informing the public about the product they offer, refrain from making the following false or deceptive representations:
(a) That the debtor of a reverse mortgage loan shall never owe an amount greater than the property’s value.
(b) That the reverse mortgage is a federal government benefit and not a mortgage loan.
(c) That the borrower shall receive “lifetime” income.
(d) That the borrower shall never be at risk of losing his/her home.
(e) That the financial institution is somehow affiliated to the federal government or that it is offering the product “under a federal government program”.
(f) Any other representation which implies a benefit or creates an expectation inconsistent with the cost, nature, and complexity of reverse mortgage loans.
History —July 29, 2011, No. 164, § 9, eff. 60 days after July 29, 2011; July 20, 2012, No. 143, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3069 - Duties of the Office of the Commissioner of Financial Institutions and of the Public Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico

The Office of the Commissioner of Financial Institutions (OCFI) and the Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico (COSSEC, Spanish acronym) are hereby empowered to establish the regulations as are necessary for the implementation thereof, for the purpose of assuring that its implementation is of utmost priority. Such regulations shall include:
(a) Rules on holding liable for noncompliance as provided in subsections (b) and (c) of § 3070 of this title.
(b) Procedures to be followed to settle complaints for noncompliance with this chapter, for which any remedies shall be granted pursuant to the provisions of subsections (b) and (c) of § 3070 of this title.
Furthermore, the OCIF and the COSSEC shall be in charge of conducting a public education campaign addressed to the senior population about the aspects pertaining to reverse mortgages. The campaign shall have a duration of at least one (1) year, after which such campaign shall be launched as these agencies may deem pertinent.
History —July 29, 2011, No. 164, § 10, eff. 60 days after July 29, 2011; July 20, 2012, No. 143, § 5.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3070 - Violations of the law; liability; penalties; fines

Any financial institution found to be in violation of this chapter shall be subject to:
(a) Special and expeditious civil compensation action if in violation of its legal obligation of being honest, acting in good faith, and providing fair treatment to applicants for and borrowers of reverse mortgage loans. Sanctions shall be at the discretion of the judge and may include, among others:
(1) Release from mortgage lien.
(2) Release from interest.
(3) Triple indemnification for damages.
When imposing sanctions the court shall consider and oversee that the rights of third parties that qualify as bona fide holders of the note are not affected.
Although an expedited process has been established for a cause of action, it shall not be construed as an impediment for the judge to carry out any proceedings he/she deems necessary to elucidate the dispute under his/her consideration; provided, it does not result in any unreasonable delays. In those cases where the United States Department of Housing and Urban Development is the holder of the note, the Department shall be granted an opportunity to correct any deficiency before the court imposes a release of mortgage lien or a release of interests.
(b) Administrative fines of up to fifty thousand dollars ($50,000) and of up to the sum total of the reverse mortgage for which a complaint has been filed, in the case of recidivism.
(c) Suspension of the license issued by the Commissioner of Financial Institutions or the Public Corporation for the Supervision and Insurance of Cooperatives in Puerto Rico.
(d) Any financial institution or natural or juridical person that violates the provisions of this chapter shall be subject to the corresponding legal actions.
History —July 29, 2011, No. 164, § 11, eff. 60 days after July 29, 2011; July 20, 2012, No. 143, § 6.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 144 - Reverse Mortgage Consumer Protection Act (§§ 3061 — 3071) › § 3071 - Choice of law

This chapter shall apply prospectively to all reverse mortgages executed in Puerto Rico.
History —July 29, 2011, No. 164, § 12, eff. 60 days after July 29, 2011.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3083 - Interest rates and reserves

The Commissioner may not establish interest rates to be paid or charged by an international financial institution.
Notwithstanding the foregoing, in the case of licensed international financial institutions expressly authorized to receive deposits in accordance with clauses (1) and (2) of subsection (a) of § 3091 of this title, the Commissioner may establish reserve requirements, that in no case shall exceed twenty percent (20%) of the total demand deposits maintained by the international financial institution (except for the demand deposits maintained by the Government Development Bank for Puerto Rico and the Economic Development Bank for Puerto Rico that are duly secured by cash collateral.) The Commissioner shall establish the reserve requirements, computation method, and other details in the licenses concerned or the regulations, circular letter, or any other written communication.
History —Sept. 25, 2012, No. 273, § 4.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3088 - Amendments to articles of incorporation

(a) No amendment whatsoever shall be adopted to the articles of incorporation, partnership agreement, or other written document establishing an international financial institution or to any certification executed in accordance with § 3084 of this title, unless such amendment has been previously approved, in writing, by the Commissioner.
(b) After the due adoption of any amendment to the articles of incorporation, partnership agreement, or other written document establishing an international financial institution or to any certification executed in accordance with § 3084 of this title, the same shall be filed with the Department of State.
History —Sept. 25, 2012, No. 273, § 9.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3089 - Transfer of capital or control of an international financial institution

(a) Except as provided in the regulations of the Commissioner, no sale, encumbrance, assignment, merger, barter, exchange or other transfer of shares, interest or participation in the capital of an international financial institution may be initiated without the previous written authorization of the Commissioner, if by way of such transaction, a person could acquire, directly or indirectly, control of ten percent (10%) or more of any class of stock, interest, or participation in the capital of an international financial institution.
(b) Every merger, sale, encumbrance, assignment, barter, exchange, or other transfer of shares of capital stock, interest or participation in the capital of an international financial institution, as provided in subsection (a) of this section, shall be null ab initio if the written authorization of the Commissioner has not been obtained; the Commissioner may impose sanctions to the parties if he/she deems it appropriate.
(c) The international financial institution shall notify the Commissioner, within thirty (30) days in advance, of the transfers referred to in subsection (a) of this section, the identity of the transferor and of the transferee, and the nature of the transaction. The Commissioner may require such additional information as he/she deems necessary to determine whether the transfer would be detrimental to the security or financial solvency of the international financial institution or whether it would violate any law, rule, or regulation applicable to international financial institutions, in which case, the Commissioner may deny the authorization for such transaction; any person to whom such authorization is denied shall have the right to request a hearing pursuant to the regulations provided in § 3099 of this title.
History —Sept. 25, 2012, No. 273, § 10.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3090 - No transfer of license

No license issued in accordance with this chapter may be sold, assigned, transferred, pledged, used as security, or otherwise encumbered.
History —Sept. 25, 2012, No. 273, § 11.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3092 - Personnel

(a) The international financial institution shall employ on a full-time basis a minimum of four (4) persons at its business office or offices in Puerto Rico.
The Commissioner may authorize a lesser number of employees at the request of the interested party, for which authorization the Commissioner shall evaluate factors such as the authorities granted under the license issued in accordance with this chapter, the nature and complexity of its operations in Puerto Rico, and those other criteria established in the regulations of the Commissioner.
(b) The full-time employees of a person of which an international financial institution is a unit which render some services to such entity, shall be deemed to be full-time employees of such entity for purposes of the employment requirements set forth in subsection (a) of this section.
(c) The employment requirement provided in this section shall not be used to comply with the terms and conditions of a tax exemption decree issued under any other act.
History —Sept. 25, 2012, No. 273, § 13.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3093 - Accounts and registers

(a) Original account books and registers of the international financial institution shall be kept in its principal business office in Puerto Rico and shall reflect such details and be kept in such a manner as may be required by the regulations of the Commissioner.
(b) Such account books and registers must be segregated and kept separately from the account books and registers of any other person.
(c) Original account books and registers of an international financial institution shall be deemed to belong to such international financial institution, regardless of whether such international financial institution is a person or constitutes a unit of another person, and a duplicate thereof may be kept and maintained in its country of origin.
History —Sept. 25, 2012, No. 273, § 14.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3094 - Reports

Every international financial institution shall file with the Commissioner all such reports as may be required by the regulations of the Commissioner, including an annual financial statement prepared by certified public accountants, licensed to practice in Puerto Rico, as well as interim financial statements.
History —Sept. 25, 2012, No. 273, § 15.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3095 - Revocation, suspension or surrender

(a) A license issued under § 3087 of this title shall be subject to revocation or suspension by the Commissioner, upon previous notice and hearing pursuant to the regulations provided in § 3099 of this title, if:
(1) An international financial institution or the person of which said international financial institution is a unit, contravenes or fails to comply with any of the provisions of this chapter, any regulations of the Commissioner, or any of the terms and conditions of the license to operate an international financial institution;
(2) an international financial institution fails to pay the annual license fee, or
(3) the Commissioner finds that the business or affairs of an international financial institution are conducted in a manner that is inconsistent with the public interest.
(b) An international financial institution or the person of which said international financial institution is a unit, may at any time, and in the manner provided by the regulations of the Commissioner, surrender its license to operate an international financial institution.
History —Sept. 25, 2012, No. 273, § 16.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3096 - Dissolution

(a) The Commissioner may, among other alternatives, appoint a receiver and order the dissolution of an international financial institution if the license of said international financial institution or of the person of which the international financial institution is a unit, is revoked or surrendered pursuant to § 3095 of this title.
(b) The receiver appointed shall be a person of recognized moral integrity, with vast experience in the field of banking or finance, and his/her performance with the international financial institution shall be secured by an adequate bond, to be paid by the international financial institution itself.
(c) The receiver shall manage the international financial institution in accordance with the provisions of this chapter and shall:
(1) Take possession of the assets and liabilities, books, records, documents and files which belong to the international financial institution;
(2) collect all loans, charges, and fees owed to the international financial institution;
(3) pay all obligations and debts of the international financial institution after having paid the necessary costs of the receivership, and
(4) supervise the dissolution and liquidation of the international financial institution.
History —Sept. 25, 2012, No. 273, § 17.
2023 Laws of Puerto Rico › TITLE SEVEN - Banking (§§ 1 — 3116) › PART VII - Other Financial Institutions (§§ 3001-3012 — 3116) › Chapter 145 - International Financial Center Regulatory Act (§§ 3081 — 3106) › § 3098 - Confidentiality

(a) The information that the international financial institution provides to the Commissioner under the provisions of this chapter and the regulations adopted by the Commissioner thereunder, shall be kept confidential, except:
(1) When disclosure of such information is required by law or judicial order, or
(2) through a formal petition of a domestic or foreign government agency in the exercise of its supervisory function, when the Commissioner has grounds to believe that providing said information is in the best public interest. In such case, the information shall be delivered under a binding agreement with the concerned government entity of maintaining the confidentiality of said information. The exception under this paragraph shall under no circumstances be extended to information regarding clients of the international financial institution.
(b) The requirements under any federal or Puerto Rico law in connection with the privacy or confidentiality of any information or material provided to the Office of the Commissioner of Financial Institutions, and any privilege arising from any federal or Puerto Rico law, including the rules of any federal or Puerto Rico court with regard to said information or material, shall continue to apply to such information or material after said information or material is revealed to the Office of the Commissioner of Financial Institutions. Said information and material may be shared with any official of a federal or Puerto Rico agency who has authority to oversee the banking industry, without precluding the protections of privileges or confidentiality provided under federal and Puerto Rico laws.
(c) This section shall not apply to information or material related to the employment history of any official or orders issued by the Commissioner to any international financial institution.
History —Sept. 25, 2012, No. 273, § 19.