Sec. 36a-490. (Formerly Sec. 36-440e). License. Requirements for filing information with the Nationwide Mortgage Licensing System.
Sec. 36a-490. (Formerly Sec. 36-440e). License. Requirements for filing information with the Nationwide Mortgage Licensing System. (a) A mortgage lender,
mortgage correspondent lender and mortgage broker license shall not be transferable
or assignable. No licensee may use any name other than its legal name or a fictitious
name approved by the commissioner, provided such licensee may not use its legal name
if the commissioner disapproves use of such name. Any licensee who intends to permanently cease engaging in the business of making mortgage loans or acting as a mortgage
broker at any time during a license period for any cause, including, but not limited to,
bankruptcy, license revocation or voluntary dissolution, shall file a surrender of the
license for each office at which the licensee intends to cease to do business, on the
Nationwide Mortgage Licensing System, not later than fifteen days after such cessation,
provided this requirement shall not apply when a license has been suspended pursuant
to section 36a-51.
(b) A mortgage lender, mortgage correspondent lender or mortgage broker licensee
may change the name of the licensee or address of the office specified on the most recent
filing with the Nationwide Mortgage Licensing System if (1) at least thirty calendar
days prior to such change, the licensee files such change with the Nationwide Mortgage
Licensing System and provides, directly to the commissioner, a bond rider or endorsement to the surety bond on file with the commissioner that reflects the new name or
address of the office, and (2) the commissioner does not disapprove such change, in
writing, or request further information within such thirty-day period. The licensee shall
promptly file with the Nationwide Mortgage Licensing System or, if the information
cannot be filed on the Nationwide Mortgage Licensing System, directly notify the commissioner, in writing, of any other change in the information provided in the most recent
filing with the Nationwide Mortgage Licensing System.
(c) The mortgage lender, mortgage correspondent lender or mortgage broker licensee shall promptly file with the Nationwide Mortgage Licensing System or, if the
information cannot be filed on the Nationwide Mortgage Licensing System, directly
notify the commissioner, in writing, of the occurrence of any of the following developments:
(1) Filing for bankruptcy, or the consummation of a corporate restructuring, of the
licensee;
(2) Filing of a criminal indictment against the licensee in any way related to the
lending or brokerage activities of the licensee, or receiving notification of the filing of
any criminal felony indictment or felony conviction of any of the licensee's officers,
directors, members, partners or shareholders owning ten per cent or more of the outstanding stock;
(3) Receiving notification of the institution of license denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action by any
governmental agency against the licensee and the reasons therefor;
(4) Receiving notification of the initiation of any action by the Attorney General
or the attorney general of any other state and the reasons therefor;
(5) Receiving notification of a material adverse action with respect to any existing
line of credit or warehouse credit agreement;
(6) Suspension or termination of the licensee's status as an approved seller or servicer by the Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation or Government National Mortgage Association;
(7) Exercise of recourse rights by investors or subsequent assignees of mortgage
loans if such loans for which the recourse rights are being exercised, in the aggregate,
exceed the licensee's net worth exclusive of real property and fixed assets;
(8) Receiving notification of filing for bankruptcy of any of the licensee's officers,
directors, members, partners or shareholders owning ten per cent or more of the outstanding stock of the licensee; or
(9) Any proposed change in control in the ownership of the licensee, or among
the officers, directors, members or partners of the licensee on a form provided by the
commissioner. The commissioner may thereupon cause such investigation to be made
as he deems necessary, as if the licensee were applying for an initial license. In the case
of a corporation, "change in control" means a change of ownership by a person or group
acting in concert to acquire ten per cent or more of any class of voting securities, or the
ability of a person or group acting in concert to elect a majority of the directors or
otherwise effect a change in policy of the corporation.
(d) Each mortgage loan originator licensee shall promptly file with the Nationwide
Mortgage Licensing System or, if the information cannot be filed on the Nationwide
Mortgage Licensing System, directly notify the commissioner, in writing, of the occurrence of any of the following developments:
(1) Filing for bankruptcy of the mortgage loan originator licensee;
(2) Filing of a criminal indictment against the mortgage loan originator licensee;
(3) Receiving notification of the institution of license or registration denial, cease
and desist, suspension or revocation procedures, or other formal or informal regulatory
action by any governmental agency against the mortgage loan originator licensee and
the reasons therefor; or
(4) Receiving notification of the initiation of any action against the mortgage loan
originator licensee by the Attorney General or the attorney general of any other state
and the reasons therefor.
(e) Each mortgage lender, mortgage correspondent lender, mortgage broker and
mortgage loan originator license shall remain in force and effect until it has been surrendered, revoked, suspended or expires, or is no longer effective, in accordance with the
provisions of sections 36a-485 to 36a-498a, inclusive.
(P.A. 85-399, S. 6; P.A. 89-347, S. 13; P.A. 94-122, S. 234, 340; P.A. 97-22, S. 1; P.A. 02-111, S. 7; P.A. 04-69, S. 5;
P.A. 07-91, S. 3; 07-156, S. 8; P.A. 08-176, S. 31, 44.)
History: P.A. 89-347 amended Subsec. (a) by adding the reference to a licensee acting as a mortgage broker in more
than one location; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440e transferred to Sec. 36a-490 in 1995; P.A. 97-22 made a technical change in Subsec. (a); P.A. 02-111 amended Subsec. (a) by changing requirement
re license from "prominently posted in each place of business of the licensee" to "maintained at the location for which the
license was issued and shall be available for public inspection", by changing requirement re change of location from
prior approval to prior written notice and by making technical changes, amended Subsec. (b) by deleting former notice
requirements and adding provision requiring licensee to promptly notify commissioner of any change in the information
provided in the application and amended Subsec. (c) by replacing reference to Sec. 36a-495 with reference to Sec. 36a-498; P.A. 04-69 amended Subsec. (c) to substitute "36a-498a" for "36a-498"; P.A. 07-91 amended Subsec. (a) to delete
provision requiring only prior written notice to commissioner for any change of location of a licensee, and amended Subsec.
(b) to allow licensee to change name or location specified on its license if, at least 21 calendar days prior to change, licensee
provides written notice to commissioner on a form satisfactory to commissioner and a bond rider or endorsement to surety
bond on file and commissioner does not disapprove change, in writing, or request further information within such 21-day
period; P.A. 07-156 amended Subsec. (a) to insert "mortgage lender and first mortgage broker" re license, effective September 30, 2008; P.A. 08-176 changed effective date of P.A. 07-156, S. 8, from September 30, 2008, to July 1, 2008, amended
Subsec. (a) to add mortgage correspondent lender, to delete provisions re business at more than one location, to substitute
legal name or fictitious name approved by commissioner for name stated on license, to add provisions re licensee who
ceases to engage in business and to make conforming changes, amended Subsec. (b) to substitute "thirty" for "twenty-one" calendar days and "thirty-day" for "twenty-one-day" period and provide for filing with Nationwide Mortgage Licensing System, added new Subsecs. (c) and (d) re notification requirements, redesignated existing Subsec. (c) as Subsec. (e)
and made conforming changes therein, effective July 1, 2008.