Iowa Administrative Code › Agency 187 - Banking Division › Chapter 19 - Mortgage Loan Originators › Rule 187-19.3 - Grounds for Denial of License

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The
			 superintendent shall deny an application for a mortgage loan originator license
			 if the applicant does not meet the qualifications outlined in Iowa Code section
			 535D.6.
			 For the purpose of applying Iowa Code section
			 535D.6(2),
			 "dishonesty or breach of trust" includes, but is not limited to, forgery,
			 embezzlement, obtaining money under false pretenses, theft, extortion, fraud,
			 conspiracy to defraud, tax evasion, or another similar offense.
(2) The superintendent may deny an
			 application for a mortgage loan originator license for any of the following
			 reasons:
a. This state or another state or
			 jurisdiction has denied, suspended, or refused to renew the applicant's license
			 to act as a mortgage loan originator or has denied, suspended, or refused to
			 renew a similar license or registration under this state's or the other state's
			 or jurisdiction's law. An agreement made between a person and this state or
			 another state or jurisdiction not to operate as a mortgage loan originator
			 shall be considered a denial of that person's license to act as a mortgage loan
			 originator in that state.
b. The
			 applicant has been barred, removed, or prohibited from serving in any capacity
			 in a financial institution by any state or federal regulatory agency, including
			 but not limited to the Office of Comptroller of the Currency, the Federal
			 Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal
			 Reserve System, or the U.S. Department of Housing and Urban
			 Development.
c. The applicant has
			 been convicted of forgery, embezzlement, obtaining money under false pretenses,
			 theft, extortion, conspiracy to defraud, tax evasion, or another similar
			 offense, in a court of competent jurisdiction in this state or in any other
			 state, territory or district of the United States, or in any foreign
			 jurisdiction. For the purposes of this paragraph, "convicted of" includes a
			 guilty plea, deferred judgment, deferred sentence, or other similar finding of
			 guilt by a court of competent jurisdiction.
d. The applicant has had a professional
			 license of any kind revoked in any state or jurisdiction. An agreement to
			 surrender a license and not to operate in an occupation in which a professional
			 license is required shall be considered a revocation for the purposes of this
			 rule.
e. The applicant is under 18
			 years of age.
f. The applicant has
			 made a false statement of material fact on an application for a license or has
			 been otherwise implicated in the submission of a false application.
g. The applicant has demonstrated a lack of
			 moral character in a manner that the superintendent reasonably believes will
			 impair the applicant's ability to act as a mortgage loan originator in full
			 compliance with the public interest and state policies described in Iowa Code
			 chapters 535B and 535D.
h. The
			 applicant has failed to pay child support and is identified in a certificate of
			 noncompliance from the child support recovery unit of the department of human
			 services according to the procedures in Iowa Code chapter 252J.
i. The applicant has failed to pay state debt
			 and is identified in a certificate of noncompliance from the department of
			 revenue according to the procedures set forth in Iowa Code chapter
			 272D.