Sec. 36a-486. (Formerly Sec. 36-440a). License required. Violations.
Sec. 36a-486. (Formerly Sec. 36-440a). License required. Violations. (a) No
person shall engage in the business of making mortgage loans or act as a mortgage
broker in this state unless such person has first obtained the required license for its main
office and each branch office where such business is conducted in accordance with the
provisions of sections 36a-485 to 36a-498a, inclusive. A person, other than a licensed
mortgage loan originator acting on behalf of the mortgage lender, mortgage correspondent lender or mortgage broker, that employs or retains such mortgage loan originator,
shall be deemed to be engaged in the business of making mortgage loans if such person
advertises, causes to be advertised, solicits, offers to make or makes mortgage loans,
either directly or indirectly. A mortgage correspondent lender shall not be deemed to
be acting as a mortgage lender if such mortgage correspondent lender makes a loan
utilizing its own funds in a situation where another person does not honor such person's
commitment to fund the loan.
(b) No person licensed as a mortgage lender, mortgage correspondent lender or
mortgage broker shall employ or retain a mortgage loan originator unless such mortgage
loan originator is licensed under sections 36a-485 to 36a-498a, inclusive. No individual
may act as a mortgage loan originator without being licensed, or act as a mortgage loan
originator for more than one person. The license of a mortgage loan originator is not
effective during any period when such mortgage loan originator is not associated with
a licensed mortgage lender, mortgage correspondent lender or mortgage broker. Either
the mortgage loan originator or the mortgage lender, mortgage correspondent lender or
mortgage broker may file a notification of the termination of employment of a mortgage
loan originator with the Nationwide Mortgage Licensing System.
(c) Each mortgage loan negotiated, solicited, arranged, placed, found or made without a license shall constitute a separate violation for purposes of section 36a-50.
(P.A. 85-399, S. 2; P.A. 89-347, S. 10; P.A. 93-32; P.A. 94-122, S. 230, 340; P.A. 96-71, S. 1, 8; 96-109, S. 10; 96-180, S. 117, 166; P.A. 02-111, S. 3; P.A. 04-69, S. 2; P.A. 07-156, S. 5; P.A. 08-176, S. 31, 40.)
History: P.A. 89-347 added requirements re mortgage brokers; P.A. 93-32 made previous provision Subsec. (a) and
added new Subsec. (b) imposing civil penalty for those who do not obtain the license required; P.A. 94-122 made technical
changes, effective January 1, 1995; Sec. 36-440a transferred to Sec. 36a-486 in 1995; P.A. 96-71, 96-109 and 96-180 all
amended Subsec. (a) to delete "loan" before "mortgage loan business in this state", effective July 1, 1996; P.A. 02-111
amended Subsec. (a) by rewriting provisions applicable to lenders and brokers and adding provisions re first mortgage
correspondent lenders, added new Subsec. (b) re registration of originators, and redesignated existing Subsec. (b) as Subsec.
(c), adding "or registration" therein; P.A. 04-69 amended Subsecs. (a) and (b) to substitute "36a-498a" for "36a-498"; P.A.
07-156 amended Subsecs. (b) and (c) to replace registration requirement for originators with licensing requirement and to
make conforming changes, effective September 30, 2008; P.A. 08-176 changed effective date of P.A. 07-156, S. 5, from
September 30, 2008, to July 1, 2008, amended Subsec. (a) to add reference to main office and each branch office, to provide
that a person, other than a mortgage loan originator, "shall be deemed to be engaged in the business of making mortgage
loans if such person advertises, causes to be advertised, solicits, offers to make or makes mortgage loans, either directly
or indirectly", and to make conforming changes, amended Subsec. (b) to add mortgage correspondent lender, to change
notification provision from "shall promptly notify the commissioner, in writing" to "may file" with Nationwide Mortgage
Licensing System and to make conforming changes, and amended Subsec. (c) to add "arranged" and to make a conforming
change, effective July 1, 2008.