(1)The director may, following a hearing
under the Administrative Procedure Act and the rules and regulations adopted
and promulgated under the act, suspend or revoke any license issued under
the Residential Mortgage Licensing Act. The director may also impose an administrative
fine for each separate violation of the act if the director finds:
(a)The licensee has materially violated or demonstrated a continuing
pattern of violating the act, rules and regulations adopted and promulgated
under the act, any order, including a cease and desist order, issued under
the act, or any other state or federal law applicable to the conduct of its
business;
(b)A fact or condition exists which, if it had existed at the time
of the original application for the license, would have warranted the director
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(1) The director may, following a hearing
under the Administrative Procedure Act and the rules and regulations adopted
and promulgated under the act, suspend or revoke any license issued under
the Residential Mortgage Licensing Act. The director may also impose an administrative
fine for each separate violation of the act if the director finds:
(a) The licensee has materially violated or demonstrated a continuing
pattern of violating the act, rules and regulations adopted and promulgated
under the act, any order, including a cease and desist order, issued under
the act, or any other state or federal law applicable to the conduct of its
business;
(b) A fact or condition exists which, if it had existed at the time
of the original application for the license, would have warranted the director
to deny the application;
(c) The licensee has violated a voluntary consent or compliance agreement
which had been entered into with the director;
(d) The licensee has made or caused to be made, in any document filed
with the director or in any proceeding under the act, any statement which
was, at the time and in light of the circumstances under which it was made,
false or misleading in any material respect or suppressed or withheld from
the director any information which, if submitted by the licensee, would have
resulted in denial of the license application;
(e) The licensee has refused to permit an examination by the director
of the licensee's books and affairs pursuant to subsection (1) or (2) of section 45-741 or has refused or failed to comply with subsection (5) of section 45-741
after written notice of the violation by the director. Each day the licensee
continues in violation of this subdivision after such written notice constitutes
a separate violation;
(f) The licensee has failed to maintain records as required by subdivision
(8) of section 45-737 or as otherwise required following written notice of
the violation by the director. Each day the licensee continues in violation
of this subdivision after such written notice constitutes a separate violation;
(g) The licensee knowingly has employed any individual or knowingly
has maintained a contractual relationship with any individual acting as an
agent, if such individual has been convicted of, pleaded guilty to, or was
found guilty after a plea of nolo contendere to (i) a misdemeanor under any
state or federal law which involves dishonesty or fraud or which involves
any aspect of the mortgage banking business, depository institution business,
or installment loan company business or (ii) any felony under state or federal
law;
(h) The licensee knowingly has employed any individual or knowingly
has maintained a contractual relationship with any individual acting as an
agent, if such individual (i) has had a mortgage loan originator license revoked
in any state, unless such revocation was subsequently vacated, (ii) has a
mortgage loan originator license which has been suspended by the director,
or (iii) while previously associated in any other capacity with another licensee,
was the subject of a complaint under the act and the complaint was not resolved
at the time the individual became employed by, or began acting as an agent
for, the licensee and the licensee with reasonable diligence could have discovered
the existence of such complaint;
(i) The licensee knowingly has employed any individual or knowingly
has maintained a contractual relationship with any individual acting as an
agent if such individual is conducting activities requiring a mortgage loan
originator license in this state without first obtaining such license;
(j) The licensee has violated the written restrictions or conditions
under which the license was issued;
(k) The licensee, or if the licensee is a business entity, one of the
officers, directors, shareholders, partners, and members, was convicted of,
pleaded guilty to, or was found guilty after a plea of nolo contendere to
(i) a misdemeanor under any state or federal law which involves dishonesty
or fraud or which involves any aspect of the mortgage banking business, depository
institution business, or installment loan company business or (ii) any felony
under state or federal law;
(l) The licensee has had a similar license revoked in any other jurisdiction;
or
(m) The licensee has failed to reasonably supervise any officer, employee,
or agent to assure his or her compliance with the act or with any state or
federal law applicable to the mortgage banking business.
(2) Except as provided in this section and
section 45-742.01 , a license shall not be revoked or suspended
except after notice and a hearing in accordance with the Administrative Procedure
Act and the rules and regulations adopted and promulgated by the department.
(3) A licensee may voluntarily surrender a license by delivering to
the director written notice of the surrender, but a surrender shall not affect
civil or criminal liability for acts committed before the surrender or liability
for any fines which may be levied against the licensee or any of its officers,
directors, shareholders, partners, or members pursuant to section 45-743 for
acts committed before the surrender. The director's approval of such license
surrender shall not be required unless the director has commenced an examination
or investigation pursuant to section 45-741 or has commenced a proceeding
to revoke or suspend the licensee's license or impose an administrative fine
pursuant to this section.
(4)(a) If a licensee fails to (i) renew its license as required by sections 45-706 and 45-732 and does not voluntarily surrender the license pursuant
to this section or (ii) pay the required fee for renewal of the license, the
department may issue a notice of expiration of the license to the licensee
in lieu of revocation proceedings.
(b) The director may adopt by rule, regulation, or order procedures
for the reinstatement of licenses for which a notice of expiration was issued
in accordance with subdivision (a) of this subsection. Such procedures shall
be consistent with standards established by the Nationwide Mortgage Licensing
System and Registry. The fee for reinstatement shall be the same fee as the
fee for the initial license application.
(c) If a licensee fails to maintain a surety bond as required by section 45-724 , the department may issue a notice of cancellation of the license in
lieu of revocation proceedings.
(5) Revocation, suspension, surrender, cancellation, or expiration of
a license shall not impair or affect the obligation of a preexisting lawful
contract between the licensee and any person, including a borrower.
(6) Revocation, suspension, cancellation, or expiration of a license
shall not affect civil or criminal liability for acts committed before the
revocation, suspension, cancellation, or expiration or liability for any fines
which may be levied against the licensee or any of its officers, directors,
shareholders, partners, or members pursuant to section 45-743 for acts committed
before the revocation, suspension, cancellation, or expiration.