Sec. 36a-489. (Formerly Sec. 36-440d). Issuance of licenses. Denial of licenses.
Sec. 36a-489. (Formerly Sec. 36-440d). Issuance of licenses. Denial of licenses.
(a) If the commissioner finds, upon the filing of an application for a license as a mortgage
lender, mortgage correspondent lender or mortgage broker, that the applicant meets the
requirements of subsection (a) of section 36a-488, and that the financial responsibility,
character, reputation, integrity and general fitness of the applicant and of the partners
thereof if the applicant is a partnership, of the members if the applicant is a limited
liability company or association, and of the officers, directors and principal employees
if the applicant is a corporation, are such as to warrant belief that the business will be
operated soundly and efficiently, in the public interest and consistent with the purposes
of sections 36a-485 to 36a-498a, inclusive, and sections 36a-760a to 36a-760h, inclusive, the commissioner may thereupon issue the license. If the commissioner fails to
make such findings, or if the commissioner finds that the applicant has made a material
misstatement in such application, the commissioner shall not issue a license, and shall
notify the applicant of the denial and the reasons for such denial. Any denial of an
application by the commissioner shall, when applicable, be subject to the provisions of
section 46a-80.
(b) Upon the filing of an application for a mortgage loan originator license, the
commissioner shall license the mortgage loan originator named in the application unless
the commissioner finds that such applicant or mortgage loan originator has made a
material misstatement in the application or that the financial responsibility, character,
reputation, integrity and general fitness of such mortgage loan originator are not such
as to warrant belief that granting such license would be in the public interest and consistent with the purposes of sections 36a-485 to 36a-498a, inclusive, and sections 36a-760a
to 36a-760h, inclusive. If the commissioner denies an application for a mortgage loan
originator license, the commissioner shall notify the applicant and the proposed mortgage loan originator of the denial and the reasons for such denial. Any denial of an
application by the commissioner shall, when applicable, be subject to the provisions of
section 46a-80.
(P.A. 85-399, S. 5; P.A. 89-347, S. 12; P.A. 94-122, S. 233, 340; P.A. 99-36, S. 26; P.A. 02-111, S. 6; P.A. 04-69, S.
4; P.A. 06-45, S. 2; P.A. 07-156, S. 7; P.A. 08-176, S. 31, 43.)
History: P.A. 89-347 extended the application of the section to mortgage brokers; P.A. 94-122 made technical changes,
effective January 1, 1995; Sec. 36-440d transferred to Sec. 36a-489 in 1995; P.A. 99-36 made technical changes; P.A. 02-111 designated existing provisions as Subsec. (a) and amended same by requiring commissioner to find that applicant
meets requirements of Sec. 36a-488(a), providing that application requirements extend to "partners" in a partnership, and
adding provisions re extending application requirements to "members if the applicant is a limited liability company", re
denial of license application based on material misstatement in application, and re denial of application subject to provisions
of Sec. 46a-80 and added Subsec. (b) re application for registration of originator; P.A. 04-69 substituted "36a-498a" for
"36a-498"; P.A. 06-45 amended Subsec. (a) to require commissioner to deny application for license if commissioner
finds that applicant made a material misstatement in application for registration of originator or files application for such
registration with knowledge that application contains a material misstatement by originator, and amended Subsec. (b) to
require commissioner to register originator named in application unless commissioner finds that originator has made a
material misstatement in application and to make technical changes, effective May 8, 2006; P.A. 07-156 replaced language
re application for registration of originator and registration with language re application for originator license and license
and made conforming changes, effective September 30, 2008; P.A. 08-176 changed effective date of P.A. 07-156, S. 7,
from September 30, 2008, to July 1, 2008, amended Subsec. (a) to add mortgage correspondent lender, amended Subsecs.
(a) and (b) to add references to Secs. 36a-760a to 36a-760h and to make conforming changes, and amended Subsec. (b)
to delete provision re license remaining in force and effect, effective July 1, 2008.
Subsec. (a):
Although subsec. does not expressly address sole proprietorships, it delineates those individuals to whom commissioner
looks in determining the general fitness of various corporate organizations, including principal employees of corporations,
and it follows that commissioner reasonably would examine acts of the few employees of sole proprietorship, done in
furtherance of its business, in assessing the organization's character or general fitness. 94 CA 547.