6.2-1720 - (Effective October 1, 2010) Regulations; agreements between Commission and Registry.

§ 6.2-1720. (Effective October 1, 2010) Regulations; agreements betweenCommission and Registry.

A. The Commission shall adopt such regulations as it deems appropriate toeffect the purposes of this chapter. Before adopting any such regulations,the Commission shall give reasonable notice of their content and shall affordinterested parties an opportunity to present evidence and be heard, inaccordance with the Commission's Rules.

B. The Commission shall, to the extent practicable, include in any writtenmemorandum of understanding or other written agreement between the Commissionand the Registry provisions substantially similar to the following:

1. Any organization serving as the administrator of the Registry or anyofficer or employee of any such entity shall implement and maintain aninformation security program that meets or exceeds federal and statestandards pursuant to § 18.2-186.6 and that complies with the regulationguidelines promulgated under the Gramm-Leach-Bliley Act (15 U.S.C. § 6801 etseq.) for safeguarding personal information of mortgage loan originators andapplicants;

2. The Registry shall not under any circumstances disclose to any third partyany information pertaining to any pending or incompletely adjudicatedregulatory matters;

3. The Registry shall develop, as requested by the Commission, a mortgageloan originator licensing test that may be limited to specific products andservices;

4. The Registry shall provide to the Commission summary statisticalinformation by March 31 of each year relating to loan originator examinationstaken by applicants for a mortgage loan originator license in theCommonwealth during the preceding calendar year;

5. Except as otherwise provided in § 1512 of the Act, the requirements underany federal or state law regarding the privacy or confidentiality of anyinformation or material provided to the Registry, and any privilege arisingunder federal or state law, including the rules of any federal or statecourt, with respect to such information or material, shall continue to applyto such information or material after the information or material has beendisclosed to the Registry. Such information and material may be shared withall state and federal regulatory officials with mortgage industry oversightauthority without the loss of privilege or the loss of confidentialityprotections provided by federal or state law; and

6. Information or material that is subject to privilege or confidentialityunder § 6.2-101 shall not be subject to: (i) disclosure under any federal orstate law governing the disclosure to the public of information held by anofficer or an agency of the federal government or the Commonwealth; or (ii)subpoena or discovery, or admission into evidence, in any private civilaction or administrative process, unless with respect to any privilege heldby the Registry with respect to such information or material, the individualto whom such information or material pertains waives, in whole or in part, inthe discretion of such individual, that privilege.

C. Any provision of the laws of the Commonwealth relating to the disclosureof confidential supervisory information or any information or materialdescribed in § 6.2-101 that is inconsistent with such provision shall besuperseded by the requirements of this chapter.

D. This chapter shall not apply with respect to the information or materialrelating to the employment history of, and publicly adjudicated disciplinaryand enforcement actions against, mortgage loan originators that is includedin the Registry for access by the public.

E. The Commission shall:

1. Annually review the proposed budget, fees, and audited financialstatements of the Registry;

2. Annually, to the extent practicable, report to the House and SenateCommittees on Commerce and Labor on the operations of the Registry, includingcompliance with its established protocols for securing and safeguardingpersonal information in the Registry; and

3. To the extent practicable, prepare, publicly announce, and publish areport, by no later than May 1 of each year, that summarizes statistical testresults and demographic information to be prepared by the Registry or itstest administrator.

(2009, cc. 273, 453, § 6.1-431.21; 2010, c. 794.)