§ 535D.6 — Conditions of licensure

Iowa § 535D.6

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

Text

An applicant for licensure as a mortgage loan originator shall demonstrate qualifications
as follows:
1. The applicant has never had a mortgage loan originator license revoked in any
governmental jurisdiction, except that a subsequent formal vacation of such revocation shall
not be deemed a revocation.
2. The applicant has not been convicted of, or pled guilty or no contest to, a felony in a
domestic, foreign, or military court during the seven-year period preceding the date of the
application for licensure; or at any time preceding such date of application, if such felony
involved an act of fraud, dishonesty, or a breach of trust, or money laundering. A pardon of
a conviction shall not constitute a conviction for purposes of this subsection.
3. The applicant has demonstrated financial responsibility, character, and general fitness
suchastocommandtheconfidenceofthecommunityandtowarrantadeterminationthatthe
applicant will operate honestly, fairly, and efficiently within the purposes of this chapter. For
purposes of this subsection, a person has shown that the person is not financially responsible
when the person has shown a disregard in the management of their own financial condition.
The superintendent shall not deny a license on the sole basis of an applicant’s credit score. A
determination that an individual has not shown financial responsibility may include but not
be limited to current outstanding judgments, except judgments solely as a result of medical
expenses; current outstanding tax liens or other government liens or filings; foreclosures
within the past three years; or a pattern of seriously delinquent accounts within the past three
years.
4. The applicant has completed the prelicensing education requirements pursuant to
section 535D.7.
5. The applicant has passed a written test that meets the requirements of section 535D.8.
6. The applicant has met the surety bond requirement or paid into a recovery fund as
required pursuant to section 535D.14.
7. There are no other grounds to deny the applicant a license pursuant to rules adopted
by the superintendent. Such rules may include discretionary grounds for license denial.