Sec. 36a-494. (Formerly Sec. 36-440i). Suspension, revocation or refusal to renew license or taking of other action.
Sec. 36a-494. (Formerly Sec. 36-440i). Suspension, revocation or refusal to
renew license or taking of other action. (a)(1) The commissioner may suspend, revoke
or refuse to renew any mortgage lender, mortgage correspondent lender or mortgage
broker license or take any other action, in accordance with the provisions of section
36a-51, for any reason which would be sufficient grounds for the commissioner to deny
an application for such license under sections 36a-485 to 36a-498a, inclusive, or if the
commissioner finds that the licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (A) Made any material misstatement in the application; (B) committed any fraud,
misappropriated funds or misrepresented, concealed, suppressed, intentionally omitted
or otherwise intentionally failed to disclose any of the material particulars of any mortgage loan transaction, including disclosures required by subdivision (6) of subsection
(a) of section 36a-493, or part III of chapter 669 or regulations adopted pursuant thereto,
to anyone entitled to such information; (C) violated any of the provisions of this title
or of any regulations adopted pursuant thereto, or any other law or regulation applicable
to the conduct of its business; or (D) failed to perform any agreement with a licensee
or a borrower.
(2) The commissioner may suspend, revoke or refuse to renew any mortgage loan
originator license or take any other action, in accordance with the provisions of section
36a-51, for any reason which would be sufficient grounds for the commissioner to deny
an application for such license under sections 36a-485 to 36a-498a, inclusive, or if the
commissioner finds that the licensee has committed any fraud, misappropriated funds,
misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally
failed to disclose any of the material particulars of any mortgage loan transaction or has
violated any of the provisions of this title or of any regulations adopted pursuant to such
title or any other law or regulation applicable to the conduct of such licensee's business.
(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498a,
inclusive, or any regulation adopted pursuant thereto, or any licensee has failed to perform any agreement with a borrower, committed any fraud, misappropriated funds or
misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally
failed to disclose any of the material particulars of any mortgage loan transaction, including disclosures required by subdivision (6) of subsection (a) of section 36a-493, or part
III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such
information, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.
(P.A. 85-399, S. 10; P.A. 86-403, S. 78, 132; P.A. 88-230, S. 1, 12; P.A. 89-347, S. 17; P.A. 90-98, S. 1, 2; P.A. 93-142, S. 4, 7, 8; 93-194, S. 5, 7; P.A. 94-122, S. 237, 340; P.A. 99-36, S. 29; P.A. 00-61, S. 2, 9; P.A. 02-111, S. 11; P.A.
04-69, S. 8; P.A. 05-46, S. 3; P.A. 06-45, S. 4; P.A. 07-91, S. 17; 07-156, S. 12; P.A. 08-176, S. 31, 50.)
History: P.A. 86-403 deleted reference to chapter 657a in Subsec. (a); P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 89-347 amended Subsec. (a) by adding
failure to make disclosures required by Sec. 36-440h(a)(6) as grounds for suspending, revoking or refusing to renew a
license; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993;
P.A. 93-194 specified that provisions apply to persons who are not licensed as well as to licensees, effective June 23, 1993;
P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and made technical changes, effective January 1, 1995; Sec.
36-440i transferred to Sec. 36a-494 in 1995; P.A. 99-36 made technical changes; P.A. 00-61 amended Subsec. (b) by
adding language re licensee's failure to perform an agreement with a borrower, effective July 1, 2000; P.A. 02-111 amended
Subsec. (a) by designating existing provisions as Subdiv. (1) and, within said Subdiv., redesignating existing Subdivs. (1)
to (4) as Subparas. (A) to (D), replacing "owner" with "proprietor", adding reference to misappropriated funds in Subpara.
(B), replacing former statutory references with reference to "this title" in Subpara. (C) and adding reference to licensee in
Subpara. (D), and by adding new Subdiv. (2) re commissioner's authority to suspend, revoke or refuse to renew registration
of originator; P.A. 04-69 substituted "36a-498a" for "36a-498" throughout and amended Subsec. (b) to allow commissioner
to take action against violator or licensee in accordance with Sec. 36a-52; P.A. 05-46 amended Subsec. (b) to allow
commissioner to impose civil penalty or issue cease and desist order against licensees and registrants who commit fraud,
misappropriate funds or misrepresent, conceal, suppress, intentionally omit or otherwise intentionally fail to disclose any
material particulars of mortgage loan transaction to anyone entitled to such information; P.A. 06-45 amended Subsec.
(a)(2) to provide that violations of title 36a or regulations or any other law applicable to conduct of registrant's business
are grounds for suspension, revocation or refusal to renew registration of originator, effective May 8, 2006; P.A. 07-91
amended Subsec. (a)(1) and (2) to authorize commissioner to take any other action, in accordance with provisions of Sec.
36a-51, effective June 5, 2007; P.A. 07-156 amended Subsec. (a)(1) to insert "mortgage lender or first mortgage broker"
re license, amended Subsec. (a)(2) to substitute "license" and "licensee" for "registration" and "registrant", and amended
Subsec. (b) to delete references to "registrant", effective September 30, 2008; P.A. 08-176 changed effective date of P.A.
07-156, S. 12, from September 30, 2008, to July 1, 2008, and amended Subsec. (a) to add "mortgage correspondent lender",
make conforming changes and, in Subdiv. (2), include findings that licensee has "concealed, suppressed, intentionally
omitted or otherwise intentionally failed to disclose" any material particulars, effective July 1, 2008.