(1)The
administrator may conduct investigations and examinations as follows:
(a)For purposes of general or specific inquiry or investigation to determine
compliance with this article 21, the administrator may access, receive, and use any
records or information belonging to a notifier or person subject to this article 21
who may have failed to notify the administrator pursuant to section 5-21-104,
including criminal, civil, and administrative history information; personal history and
experience information, including independent credit reports obtained from a
consumer reporting agency described in section 603 (p) of the federal Fair Credit
Reporting Act, 15 U.S.C. sec. 1681a, as amended; and any other records or
information the administrator considers relevant to the inquiry or
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(1) The
administrator may conduct investigations and examinations as follows:
(a) For purposes of general or specific inquiry or investigation to determine
compliance with this article 21, the administrator may access, receive, and use any
records or information belonging to a notifier or person subject to this article 21
who may have failed to notify the administrator pursuant to section 5-21-104,
including criminal, civil, and administrative history information; personal history and
experience information, including independent credit reports obtained from a
consumer reporting agency described in section 603 (p) of the federal Fair Credit
Reporting Act, 15 U.S.C. sec. 1681a, as amended; and any other records or
information the administrator considers relevant to the inquiry or investigation
regardless of the location, possession, control, or custody of the records or
information.
(b) The administrator may initiate an investigation or examination where
there is reason to believe that there is a potential violation that risks consumer
harm, where a person who may be subject to this article 21 may have failed to notify
the administrator, or based on a substantiated complaint. The administrator may
review, investigate, or examine any notifier or person subject to this article 21 as
often as necessary in order to carry out the purposes of this article 21. The
administrator may direct, subpoena, or order the attendance of and examine under
oath any person whose testimony may be required about the residential mortgage
loan, residential mortgage loan servicing, or the business or subject matter of an
examination or investigation and may direct, subpoena, or order the person to
produce records the administrator considers relevant to the inquiry. Nothing limits
the scope of the administrator's authority to review and investigate potential
violations or harm discovered in the course of an investigation.
(c) (I) In making an examination or investigation authorized by this section,
the administrator may control access to any records of the notifier or person under
examination or investigation. The administrator may take possession of the records
or place a person in exclusive charge of the records in the place where they are
usually kept.
(II) During the period of control, a person may not remove or attempt to
remove any of the records except pursuant to a court order or with the written
consent of the administrator. Unless the administrator has reasonable grounds to
believe the records of the notifier or person have been, or are at risk of being,
altered or destroyed for purposes of concealing a violation of this article 21, the
notifier or owner of the records may have access to the records as necessary to
conduct its ordinary business affairs.
(2) In order to carry out the purposes of this section, the administrator may:
(a) Retain attorneys, accountants, or other professionals and specialists as
examiners, auditors, or investigators to conduct or assist in conducting
examinations or investigations;
(b) Enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory
burden by sharing resources, standardized or uniform methods or procedures, and
records or information obtained under this section;
(c) Use, hire, contract for, or employ publicly or privately available analytical
systems, methods, or software to examine or investigate the notifier or person
subject to this article 21;
(d) Accept and rely on examination or investigation reports made by other
government officials within or outside this state; and
(e) Accept audit reports made by an independent certified public accountant
for the notifier or person subject to this article 21 in the course of that part of the
examination covering the same general subject matter as the audit and may
incorporate the audit report in a report of examination, report of investigation, or
other writing of the administrator.
(3) A person subject to investigation or examination under this section may
not knowingly withhold, abstract, remove, mutilate, or destroy any records or other
information relating to information regulated under this article 21.
(4) Whenever it appears to the administrator that a person has violated, is
violating, or is about to violate this section or a rule adopted pursuant to this article
21 or that a notifier or an owner, director, officer, member, partner, shareholder,
trustee, employee, or agent of the notifier has committed fraud, engaged in
dishonest activities, or made a misrepresentation, the administrator may take action
against the person or notifier in accordance with this article 21.
(5) The administrator shall adopt rules as necessary to implement this article
21.