Section 397-A:17 License Revocation; Suspension.
I. The commissioner may issue an order requiring a person to whom any license has been granted or any person under the commissioner's jurisdiction to show cause why the license should not be revoked or suspended, or penalties imposed, or both, for violations of this chapter. The order shall give reasonable notice of the opportunity for a hearing and shall state the reasons for the issuance of the order. The commissioner may by order summarily postpone or suspend any license or application pending final determination of any order to show cause, or other order, or of any other proceeding under this section, provided the commissioner finds that the public interest would be irreparably harmed by delay in issuing such order. Upon the entry of the order, the commissioner shall promptly notify the respondent, applicant, or licensee that the order has been entered and of the reasons for the order and that within 10 calendar days after receipt of a written request the matter will be scheduled for hearing. Valid delivery of such order shall be by hand or certified mail at the last known principal office of the licensee, or respondent, to an officer, director, 5 percent or more owner, member, partner, or legal representative of the licensee or respondent. If the person to whom an order to show cause or other order is issued fails to request a hearing within 30 calendar days of receipt or valid delivery of the order and no hearing is ordered by the commissioner, then such person shall be deemed in default, and the order shall, on the thirty-first day, become permanent, and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown. A hearing, if requested shall be scheduled not later than 10 calendar days after the written request for such hearing is received by the commissioner, after which and within 20 calendar days from the date of the hearing the commissioner shall enter an order making such disposition of the matter as the facts require. If the licensee or respondent fails to request a hearing within 30 calendar days of receipt or valid delivery of such order or fails to appear at a hearing after being duly notified, or cannot be located after a reasonable search, such person shall be deemed in default and the proceeding may be decided against the person upon consideration of the order to show cause or other order, the allegations of which may be deemed to be true. The commissioner may by order, upon due notice and opportunity for hearing, assess penalties or deny, suspend, decline to renew, or revoke a license or application and bar any person from licensure if it is in the public interest and the applicant, respondent, or licensee, any partner, officer, member, or director, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling the applicant, respondent, or licensee:
(a) Has violated any provision of this chapter or rules or orders thereunder;
(b) Has not met the standards established in this chapter;
(c) Has accepted or processed loan applications transmitted or brokered by a mortgage broker who is not licensed, and is not exempt from licensing, under this chapter;
(d) Has filed an application for licensing which as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in any material respect or contained any statement which was, in light of the circumstances under which it was made, false or misleading with respect to any material fact;
(e) Has made a false or misleading statement to the commissioner or in any reports to the commissioner;
(f) Has made fraudulent misrepresentations, has circumvented or concealed, through whatever subterfuge or device, any of the material particulars or the nature thereof required to be stated or furnished to a borrower under the provisions of this chapter;
(g) Has failed to supervise its agents, originators, managers, or employees;
(h) Is the subject of an order entered within the past 5 years by this state, any other state, or federal regulator denying, suspending or revoking licenses or registration;
(i) Is permanently, preliminarily, or temporarily enjoined by any court of competent jurisdiction from engaging in or continuing any conduct or practice involving any aspect of lending or collection activities;
(j) Is not qualified on the basis of such factors as experience, knowledge, and financial integrity;
(k) Has engaged in dishonest or unethical practices in the conduct of the business of making or collecting mortgage loans;
(l) Has violated applicable federal laws or rules thereunder;
(m) Has made an unsworn falsification under RSA 641:3 to the commissioner; or
(n) For other good cause shown.
II. The commissioner may issue orders or directives under this chapter as follows:
(a) Order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist.
(b) 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.
(c) Enter immediate temporary orders to cease business under a license if the commissioner has determined that such license was erroneously granted or the licensee is currently in violation of the chapter or rules or orders under the chapter.
(d) Order or direct such other affirmative action as the commissioner deems necessary.
(e) Remove or ban from office or employment, including license revocation, any person conducting business under this chapter:
(1) For a violation of this chapter or orders or rules promulgated under this chapter; or
(2) For a violation of federal laws, rules, or regulations; or
(3) If the commissioner determines that such person has been convicted of a felony or misdemeanor that would preclude licensing under this chapter; or
(4) If by a preponderance of evidence the commissioner determines that the person no longer demonstrates the financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the person subject to the chapter will operate honestly, fairly, and efficiently within the purposes of the chapter.
(f) Deny, suspend, revoke, condition, or decline to renew a license if an applicant or licensee fails at any time to meet the requirements of RSA 397-A:5, IV-c or 397-A:5, IV-d, or withholds information or makes a material misstatement in an application for a license or renewal of a license.
III. If the commissioner finds that protection of consumers, lenders, or investors requires emergency action and incorporates a finding to that effect in his or her order, immediate suspension of a license may be ordered pending an adjudicative proceeding. The adjudicative proceeding shall be commenced not later than 10 business days after the date of the order suspending the license. Unless expressly waived by the licensee, the commissioner's failure to commence an adjudicative proceeding within 10 business days shall mean that the suspension order is automatically vacated. The commissioner shall not again suspend the license for the same conduct which formed the basis of the vacated suspension without granting the licensee prior notice and an opportunity for an adjudicative proceeding.
IV. [Repealed.]
V. The banking department may take action for immediate suspension of a license, pursuant to RSA 541-A:30, III.
VI. If a licensee is a partnership, association, corporation, or entity however organized, it shall be sufficient cause for the suspension or revocation of a license that any officer, director, or trustee of a licensed association or corporation or any member of a licensed partnership has so acted or failed to act in behalf of said licensee as would be cause for suspending or revoking a license to such party as an individual. Each licensee shall be responsible for supervision of its branch offices and for the acts of any or all of its employees, agents, and originators while acting as its agent if such licensee, after actual knowledge of said acts, retained the benefits, proceeds, profits, or advantages accruing from said acts or otherwise ratified said acts.
VII. If the commissioner finds that any licensee or applicant for license is no longer in existence or has ceased to do business as a mortgage broker, mortgage banker, or mortgage originator, cannot be located after reasonable search, the commissioner may by order revoke the license, impose penalties, or deny the application. The commissioner may deem abandoned and withdraw any application for licensure made pursuant to this chapter, if any applicant fails to respond in writing within 180 calendar days to a written request from the commissioner requesting a response. Such request shall be sent via certified mail to the last known address of the applicant that is on file with the commissioner.
VIII. After notice and opportunity for hearing, the commissioner may enter an order of rescission, restitution, or disgorgement of profits directed to a person who has violated this chapter, or a rule or order under this chapter. Rescission, restitution, or disgorgement of profits shall be in addition to any other penalty provided for under this chapter or RSA 383:10-d.
IX. In addition to any other penalty provided for under this chapter, after notice and opportunity for hearing, the commissioner may assess fines and penalties against a mortgage loan originator in an amount not to exceed $25,000 if the commissioner finds that such loan originator has violated or failed to comply with any requirement of the S.A.F.E. Mortgage Licensing Act of 2008, Public Law 110-289, Title V or any regulation or order issued thereunder. Each of the acts specified shall constitute a separate violation.
X. An action to enforce any provision of this chapter shall be commenced within 6 years after the date on which the violation occurred.
Source. 1987, 339:1. 1990, 66:11, 12. 1994, 412:48. 1995, 244:11. 2003, 166:3, 4; 313:13, 14. 2004, 139:19. 2005, 255:21, 22, 48, 60, eff. Sept. 12, 2005. 2008, 333:16, eff. Apr. 1, 2009. 2009, 290:36-39, eff. July 31, 2009.