Sec. 36a-488. (Formerly Sec. 36-440c). Mortgage lender, mortgage correspondent lender and mortgage broker licenses. Requirements.
Sec. 36a-488. (Formerly Sec. 36-440c). Mortgage lender, mortgage correspondent lender and mortgage broker licenses. Requirements. (a)(1) The commissioner
shall not issue a mortgage lender license, a mortgage correspondent lender license or a
mortgage broker license to any person unless such person meets the following tangible
net worth and experience requirements, as applicable: (A) The minimum tangible net
worth requirement for a mortgage lender shall be two hundred fifty thousand dollars
and the minimum tangible net worth requirement for a mortgage correspondent lender
and a mortgage broker shall be (i) prior to March 2, 2009, twenty-five thousand dollars,
and (ii) on and after March 2, 2009, fifty thousand dollars, and (B) a mortgage lender,
mortgage correspondent lender or mortgage broker shall have, at the main office for
which the license is sought, a qualified individual with supervisory authority over the
lending or brokerage activities who has at least three years' experience in the mortgage
business within the five years immediately preceding the application for the license, and
at each branch office, the lender or broker shall have a branch manager with supervisory
authority over the lending or brokerage activities who has at least three years' experience
in the mortgage business within the five years immediately preceding the application
for the license. As used in this subdivision, "experience in the mortgage business" means
paid experience in the origination, processing or underwriting of mortgage loans, the
marketing of such loans in the secondary market or in the supervision of such activities,
or any other relevant experience as determined by the commissioner.
(2) Each licensee shall maintain the net worth required by this subsection and shall
promptly notify the commissioner if such licensee's net worth falls below the net worth
required by this subsection.
(b) The commissioner may issue a mortgage lender license, a mortgage correspondent lender license, or a mortgage broker license. Each mortgage lender licensee may
also act as a mortgage correspondent lender and a mortgage broker, and each mortgage
correspondent lender licensee may also act as a mortgage broker. On and after July 1,
2008, an application for a license as a mortgage lender, mortgage correspondent lender
or mortgage broker office or renewal of such license shall be filed with the Nationwide
Mortgage Licensing System and the following supplementary information shall be filed
directly with the commissioner: (1) In the case of an application for a license for the
main office or renewal of such license, a financial statement as of a date not more than
twelve months prior to the filing of the application which reflects tangible net worth,
and if such financial statement is unaudited, the proprietor, general partner, or duly
authorized officer, trustee or member shall swear to its accuracy under oath before a
notary public; (2) a bond as required by section 36a-492; (3) evidence that the qualified
individual or branch manager meets the experience required by subsection (a) of this
section; and (4) such other information pertaining to the applicant, the applicant's background, the background of its principals, employees, and mortgage loan originators,
and the applicant's activities as the commissioner may require. For the purpose of this
subsection, evidence of experience of the qualified individual or branch manager shall
include: (A) A statement specifying the duties and responsibilities of such person's
employment, the term of employment, including month and year, and the name, address
and telephone number of a supervisor, employer or, if self-employed, a business reference; and (B) if required by the commissioner, copies of W-2 forms, 1099 tax forms
or, if self-employed, 1120 corporate tax returns, signed letters from the employer on
the employer's letterhead verifying such person's duties and responsibilities and term
of employment including month and year, and if such person is unable to provide such
letters, other proof satisfactory to the commissioner that such person meets the experience requirement. The commissioner may conduct a criminal history records check of
the applicant, of each member, partner, officer or director of the applicant and of the
person with supervisory authority at the office for which the license is sought, and require
the applicant to submit the fingerprints of such persons as part of the application. The
applicant shall submit such fingerprints for processing with the Nationwide Mortgage
Licensing System, as required.
(c) On and after July 1, 2008, an application to license a person as a mortgage
loan originator for a specified office or renewal of such license shall be filed with the
Nationwide Mortgage Licensing System. The applicant shall submit such fingerprints
for processing with the Nationwide Mortgage Licensing System, as required.
(P.A. 85-399, S. 4; P.A. 89-347, S. 11; P.A. 94-122, S. 232, 340; P.A. 99-36, S. 25; P.A. 02-111, S. 5; P.A. 06-45, S.
1; P.A. 07-91, S. 2; 07-156, S. 6; P.A. 08-176, S. 31, 42.)
History: P.A. 89-347 amended Subsec. (b) by inserting new Subdiv. (4) re the applicant's status as a lender or a broker
and renumbered the remaining Subdiv.; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440c
transferred to Sec. 36a-488 in 1995; P.A. 99-36 made a technical change in Subsec. (a); P.A. 02-111 replaced former
Subsec. (a) with new provisions re obtaining license as first mortgage lender, first mortgage correspondent lender or first
mortgage broker and re obligation to notify commissioner if net worth falls below requisite net worth, amended Subsec.
(b) to reflect commissioner's authority to issue first mortgage lender license, first mortgage correspondent lender license
and first mortgage broker license and to revise application requirements and added new Subsec. (c) re application for
registration of originator; P.A. 06-45 added Subsec. (d) to provide that filing application for registration of originator with
knowledge that application contains a material misstatement by originator shall be a violation of Sec. 36a-53a, effective
May 8, 2006; P.A. 07-91 amended Subsec. (d) to provide that filing application for renewal of registration of originator
with knowledge that application contains a material misstatement by originator shall be a violation of Sec. 36a-53a; P.A.
07-156 amended Subsec. (a)(1) to delete proviso re inapplicability of experience requirements to any person whose license
is renewed effective October 1, 2002, amended Subsec. (b) to authorize commissioner to conduct a criminal history records
check of applicants and key persons of such applicants, to require applicants to submit fingerprints of such persons, and
to require filing of applications with the national mortgage licensing system, amended Subsec. (c) to authorize commissioner
to conduct criminal history records check of applicant for an originator license, to require applicant to submit fingerprints
as part of application, and to require filing application with such system, and deleted former Subsec. (d) and language in
Subsecs. (b)(8) and (c) re registration of originator and substituted language re originator license in Subsec. (c), effective
September 30, 2008; P.A. 08-176 changed effective date of P.A. 07-156, S. 6, from September 30, 2008, to July 1, 2008,
amended Subsec. (a)(1) to increase minimum tangible net worth requirement for a mortgage correspondent lender and a
mortgage broker, on and after March 2, 2009, to $50,000, to add requirement for branch manager with supervisory authority
at each branch office who has at least 3 years' experience in the mortgage business within the 5 years immediately preceding
application for license, to define "experience in the mortgage business", and to make conforming changes, amended Subsec.
(b) to substitute, on and after July 1, 2008, application to Nationwide Mortgage Licensing System for application to
commissioner, to delete former Subdivs. (1) to (5) re requirements for application to commissioner and to renumber existing
Subdiv. (6) as new Subdiv. (1) re financial statement, to change requirement for financial statement to apply to application
for license for main office or renewal of license, rather than for all licenses under section, and substitute "twelve" for "six"
months, to add new Subdiv. (2) re bond, to renumber existing Subdiv. (7) as new Subdiv. (3) re evidence of experience
and existing Subdiv. (8) as new Subdiv. (4) re other information, to add provision re what is included in evidence of
experience of the qualified individual or branch manager, and to make conforming changes, and amended Subsec. (c) to
include reference to applications for specified offices, to substitute, on and after July 1, 2008, application to Nationwide
Mortgage Licensing System for application to commissioner and to make conforming changes, effective July 1, 2008.