Chapter 517

2016 -- H 8165 Enacted 07/26/2016

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- FEDERAL SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING

Introduced By: Representatives Kennedy, and Shekarchi

Date Introduced: May 05, 2016

It is enacted by the General Assembly as follows:

SECTION 1. Section 19-14.10-13 of the General Laws in Chapter 19-14.10 entitled "An

Act Adopting the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2009" is

hereby amended to read as follows:

19-14.10-13. Enforcement authorities, violations and penalties. -- (a) In order to

ensure the effective supervision and enforcement of this chapter, the director, or the director's

designee, may, pursuant to chapter 42-35 of title 42:

(1) Deny, suspend, revoke, condition, or decline to renew a license for a violation of this

chapter, rules or regulations issued under this chapter or order or directive entered under this

chapter.;

(2) Deny, suspend, revoke, condition, or decline to renew a license if an applicant or

licensee fails at any time to meet the requirements of § 19-14.10-6 or 19-14.10-9, or withholds

information or makes a material misstatement in an application for a license or renewal of a

license.;

(3) Order restitution against persons subject to this chapter for violations of this chapter.;

(4) Impose fines on persons subject to this chapter pursuant to subsections (b), (c) and

(d) of this section.; and

(5) Issue orders or directives under this chapter as follows:

(i) Order or direct persons subject to this chapter to cease and desist from conducting

business, including immediate temporary orders to cease and desist.;

(ii) Order or direct persons subject to this chapter to cease any harmful activities or

violations of this chapter, including immediate temporary orders to cease and desist.;

(iii) Enter immediate temporary orders to cease business under a license or interim

license issued pursuant to the authority granted under this chapter if the director, or the director's

designee, determines that such license was erroneously granted or the licensee is currently in

violation of this chapter; and

(iv) Order or direct such other affirmative action as the director, or the director's

designee, deems necessary.

(b) The director, or the director's designee, may impose a civil penalty on a mortgage

loan originator and any lender or loan broker licensed under chapters 19-14 or 19-14.1 which 14

or 14.1 of title 19 that employs such mortgage loan originator, if the director, or the director's

designee, finds, on the record after notice and opportunity for hearing, that such mortgage loan

originator has violated or failed to comply with any requirement of this chapter or any regulation

prescribed by the director, or the director's designee, under this chapter or order issued under

authority of this chapter. In addition, the director, or the director's designee may impose a civil

penalty on a lender or loan broker licensed under chapters 19-14 or 19-14.1 which 14 or 14.1 of

title 19 that employs any mortgage loan originator licensed under this chapter, if the director, or

the director's designee, finds, on the record after notice and opportunity for hearing, that such

lender or loan broker has violated or failed to comply with any requirement of this chapter or any

such regulation or order.

(c) The maximum amount of penalty for each act or omission described in subsection (b)

of this section subsection (b) shall be twenty-five thousand five hundred dollars ($25,000).

(d) Each violation or failure to comply with any directive or order of the director, or the

director's designee, is a separate and distinct violation or failure.

SECTION 2. This act shall take effect upon passage.

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LC005886

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