32-9-116. Employment of mortgage loan originator.
32-9-116. Employment of mortgage loan originator. (1) A mortgage loan originator may transact business only for an employing mortgage broker or one employing mortgage lender licensed in accordance with the provisions of this part. Each original license issued to a mortgage loan originator must be provided to and maintained by the employing mortgage broker or employing mortgage lender at the employing licensee's main office. A copy of the mortgage loan originator's license must be displayed at the office where that mortgage loan originator principally transacts business.
(2) If the employment of a mortgage loan originator is terminated, the mortgage broker or the mortgage lender shall return the mortgage loan originator's license to the department within 5 business days after the termination and remove sponsorship of the mortgage loan originator on the nationwide mortgage licensing system and registry within 5 business days of the termination. For a period of 6 months after the termination of employment, the mortgage loan originator may request the transfer of the license to another mortgage broker or mortgage lender by complying with the nationwide mortgage licensing system and registry procedures and paying a fee established by the department by rule. The removal of sponsorship of the license of any mortgage loan originator that is not transferred to another mortgage broker or mortgage lender terminates the right of the mortgage loan originator to engage in any residential mortgage loan origination activity until nationwide mortgage licensing system and registry procedures have been followed to sponsor the license. The license of any mortgage loan originator that has been removed from sponsorship and not transferred within 6 months of termination of employment must be canceled.
History: En. Sec. 10, Ch. 516, L. 2003; amd. Sec. 13, Ch. 321, L. 2009.