§ 19-14.10-4 - License and registration required.
SECTION 19-14.10-4
§ 19-14.10-4 License and registrationrequired. – (a) An individual, unless specifically exempted from this chapter undersubsection (b) of this section, shall not engage in the business of a mortgageloan originator with respect to any dwelling located in this state withoutfirst obtaining and maintaining annually a license under this chapter. Eachlicensed mortgage loan originator must register with and maintain a validunique identifier issued by the nationwide mortgage licensing system andregistry.
(b) The following are exempt from this chapter:
(1) Registered mortgage loan originators, when acting for anentity described in subparagraphs 19-14.10-3(10)(A), (B), or (C) are exemptfrom this chapter.
(2) Any individual who offers or negotiates terms of aresidential mortgage loan with or on behalf of an immediate family member ofthe individual.
(3) Any individual who offers or negotiates terms of aresidential mortgage loan secured by a dwelling that served as the individual'sresidence.
(4) A licensed attorney who negotiates the terms of aresidential mortgage loan on behalf of a client as an ancillary matter to theattorney's representation of the client, unless the attorney is compensated bya lender, a mortgage broker, or other mortgage loan originator or by any agentof such lender, mortgage broker, or other mortgage loan originator.
(5) A licensed attorney when performing loan closing servicesfor a licensed lender, licensed loan broker, or for an entity exempt fromlicensing under subdivision 19-14.1-10(a)(4);
(c) A loan processor or underwriter who is an independentcontractor may not engage in the activities of a loan processor or underwriterunless such independent contractor loan processor or underwriter obtains andmaintains a license under chapters 19-14 or 19-14.1. Each independentcontractor loan processor or underwriter licensed as a mortgage loan originatormust have and maintain a valid unique identifier issued by the nationwidemortgage licensing system and registry.
(d) For the purposes of implementing an orderly and efficientlicensing process the director or the director's designee may establishlicensing rules or regulations and interim procedures for licensing andacceptance of applications. For previously registered or licensed individualsthe director or the director's designee may establish expedited review andlicensing procedures as follows:
(1) A mortgage loan originator applicant whose employer atthe time of application for a mortgage loan originator license is an entitydescribed in subparagraphs 19-14.10-3(10)(A), (B), or (C) and who has beenassigned a unique identifier through the nationwide mortgage licensing systemand registry and who has completed and filed with the director or thedirector's designee all information, documents and requirements for licensurepursuant to this chapter shall be permitted to continue to act as a mortgageloan originator for the period prior to action being taken on his or herapplication by the director or the director's designee;
(2) A mortgage loan originator applicant who has beenassigned a unique identifier through the nationwide mortgage licensing systemand registry and who has completed and filed with the director or thedirector's designee all information, documents and requirements for licensurepursuant to this chapter and whose employer at the time of application for amortgage loan originator license is a lender or loan broker licensed underchapter 19-14 and 19-14.1, shall be permitted to continue to act as a mortgageloan originator for the period prior to action being taken on his or herapplication by the director or director's designee if the applicant and asenior officer or principal of such lender or loan broker files writtenattestation to the director or the director's designee that:
(i) The applicant is currently or has within the six (6)month period prior to the date of the application been acting as a registeredmortgage loan originator in this state or as a state-licensed mortgage loanoriginator in another state, in either case under the provisions of Section1507 of the SAFE Act;
(ii) The applicant has never had a mortgage loan license orregistration denied, revoked, or suspended in any governmental jurisdiction; and
(iii) the applicant has not been convicted of a felony thatwould otherwise authorize the director or the director's designee to deny theapplicant a license.
(3) Any provisional authority to act as a mortgage loanoriginator issued pursuant to this subsection (d) shall expire on the earlierof: (i) The date on which the director or the director's designee issues ordenies the application for the license; or (ii) One hundred twenty (120) daysfrom the date of application for the license.
(4) The director or the director's designee may deny orsuspend the rights of a lender or loan broker licensed under chapter 19-14 or19-14.1 to employ a mortgage loan originator under this subsection (d) if thedirector or the director's designee finds that such lender or loan broker, asenior official or principal thereof, or the applicant failed to exercise duediligence and good faith when submitting the attestations required insubdivision (d)(1) or (d)(2) above.