§ 535D.13 — Disciplinary action and civil enforcement authority

Iowa § 535D.13

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 535D: MORTGAGE LICENSING ACT

Text

1. The superintendent may, pursuant to chapter 17A, take disciplinary action against a
licensed mortgage loan originator if the superintendent finds any of the following:
a. The licensee has violated a provision of this chapter or a rule adopted pursuant to
this chapter or any other state or federal law or regulation applicable to the conduct of the
licensee’s business including but not limited to chapters 535 and 535A.
b. A fact or condition exists which, had it existed at the time of the original application for
the license, would have warranted the superintendent to refuse to issue the original license.
c. The licensee fails at any time to meet the requirements of section 535D.6 or 535D.9,
or withholds information or makes a material misstatement in an application for a license or
renewal of a license.
d. The licensee has violated an order of the superintendent.
2. The superintendent may impose one or more of the following disciplinary actions
against a licensee:
a. Revoke a license.
b. Suspend a license until further order of the superintendent or for a specified period of
time.
c. Impose a period of probation under specified conditions.
d. Impose civil penalties in an amount not to exceed five thousand dollars for each
violation.
e. Issue a citation and warning concerning licensee behavior.
f. Order a licensee to cease and desist from conducting business or from any harmful
activities or violations of law or rule.
g. Order the licensee to pay restitution.
3. The superintendent may order an emergency suspension of a licensee’s license or issue
§535D.13, MORTGAGE LICENSING ACT 8
an order to immediately cease and desist from conducting business or from any harmful
activities or violations of law or rule pursuant to section 17A.18A. A written order containing
the facts or conduct which warrants the emergency action shall be timely sent to the licensee
by restricted certified mail. Upon issuance of an emergency suspension order, the licensee
must also be notified of the right to an evidentiary hearing. A suspension proceeding shall
be promptly instituted and determined.
4. A licensee may surrender a license by delivering to the superintendent written notice
of surrender, but a surrender does not affect the licensee’s civil or criminal liability for acts
committed before the surrender.
5. A revocation, suspension, or surrender of a license does not impair or affect the
obligation of a preexisting lawful contract between the licensee and any person, including a
mortgagor.
6. The superintendent may issue an order to a person who is not licensed under
this chapter to require compliance with this chapter, including to cease and desist from
conducting business or from any harmful activities or violations of law or rule, may impose
a civil penalty against such person for any violation of this chapter in an amount up to five
thousand dollars for each violation, and may order the person to pay restitution.
7. Beforeissuinganorderundersubsection6, thesuperintendentshallprovidetheperson
writtennoticeandtheopportunitytorequestahearing. Thehearingmustberequestedwithin
thirty days after receipt of the notice and shall be conducted in the same manner as provided
for disciplinary proceedings involving a licensee under this chapter.
8. A person aggrieved by the imposition of a civil penalty under subsection 6 may seek
judicial review pursuant to section 17A.19.
9. An action to enforce an order under this section may be joined with an action for an
injunction.