45-13-302 - Issuance of mortgage loan originator license. - Tennessee Statutes

45-13-302. Issuance of mortgage loan originator license.

(a)  Individuals applying for a mortgage loan originator license shall complete and file a form as prescribed by the commissioner and shall pay a nonrefundable licensing fee of one hundred dollars ($100). The fee may be decreased or increased by rule of the commissioner, and constitutes the licensing fee for the first year of licensing or part of the first year. Each such application form shall be in writing and under oath and shall contain any information the commissioner deems necessary, including the following:

     (1)  The individual's name, date of birth, social security number and address;

     (2)  The name of any person for whom the individual intends to provide origination services and the address of the office at which the individual will be stationed;

     (3)  Information pertaining to the individual's personal history and experience; and

     (4)  The individual's authorization for the commissioner or the Nationwide Mortgage Licensing System and Registry, or both, to obtain:

          (A)  An independent credit report obtained from a consumer reporting agency, as defined in § 603(p) of the Fair Credit Reporting Act, codified in 15 U.S.C. § 1681a(p); and

          (B)  Information related to any administrative, civil or criminal findings by any governmental jurisdiction.

(b)  In connection with an application for a mortgage loan originator license, the applicant shall furnish fingerprints to the commissioner or the commissioner's duly authorized agent, such as the Nationwide Mortgage Licensing System and Registry, for submission to the federal bureau of investigation or any other governmental agency or entity, or both, authorized to receive the information, such as the Tennessee bureau of investigation, for a state, and/or national and/or international criminal history background check, as well as authorization for a criminal history background check. The results of the criminal history background check shall be forwarded to the commissioner. All costs incurred in conducting the criminal history records check shall be paid by the applicant, in addition to any other application and investigative fees.

(c)  No mortgage loan originator license shall be issued unless the commissioner makes at a minimum the following findings:

     (1)  The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction; provided, that a subsequent formal vacation of the revocation shall not be deemed a revocation;

     (2)  (A)  The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in any domestic, foreign or military court:

                (i)  During the seven-year period preceding the date of application for a mortgage loan originator license; or

                (ii)  At any time preceding the date of application, if the felony involved an act of fraud, dishonesty or a breach of trust or money laundering;

          (B)  Provided, that any pardon of a conviction shall not be a conviction for purposes of subdivisions (c)(2)(A)(i) and (ii);

     (3)  The applicant has demonstrated the financial responsibility, character and general fitness to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly and efficiently within the purposes of this chapter. An individual has shown that the individual is not financially responsible when the individual has shown a disregard in the management of the individual's own financial condition;

     (4)  The applicant has completed the pre-licensing education requirements set forth in § 45-13-304; and

     (5)  The applicant has passed a written test that meets the test requirement described in § 45-13-305.

(d)  Upon submission of a properly completed application form, including submission of fingerprints and payment of all applicable fees, the commissioner shall investigate the application to determine whether the applicant qualifies for a license. If the commissioner finds the applicant so qualified, the commissioner shall issue the applicant a mortgage loan originator license that shall expire on December 31 in the year it was issued. If the commissioner does not find the applicant so qualified, the commissioner shall notify the applicant in writing, stating the basis for denial. If the commissioner denies an application or fails to act on a complete application within ninety (90) days, the applicant may make a written demand to the commissioner for a hearing on the question of whether the license should be granted. Any hearing requested under this subsection (d) shall be conducted under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5; provided, that the individual has requested the hearing in writing within thirty (30) days following the date of the commissioner's denial. At the hearing, the burden of proving that the individual is entitled to a mortgage loan originator license shall be on the individual.

(e)  The commissioner shall keep a current roster showing the names of all licensed mortgage loan originators.

(f)  The commissioner shall have the authority to require a criminal history background check under subsection (b) at any time as a condition of continued licensure of a mortgage loan originator. Upon request of the commissioner, a mortgage loan originator shall furnish written consent to a criminal history record check and a set of the mortgage loan originator's fingerprints in a form acceptable to the commissioner. Failure to provide the consent and fingerprints within thirty (30) days of the commissioner's request constitutes grounds for the commissioner to suspend or revoke the mortgage loan originator's license or to deny renewal of the license.

(g)  Any costs associated with a credit report pulled under this section shall be paid by the applicant.

[Acts 2009, ch. 499, § 8.]