Application Procedure

(1) Application. Each Applicant for a license as a Mortgage Loan Originator shall submit an appli- cation on a form prescribed by the Commissioner through the NMLS, containing such information as the Commissioner may require. (2) License Requirements. An Applicant shall be required to submit detailed information supporting the following requirements: (a) Financial Responsibility. An Applicant shall provide the Commissioner with evidence of his or her financial responsibility. Such information shall include an independent credit report obtained from a consumer reporting agency described in § 603(p) of the Fair Credit Reporting Act, which shall be evaluated pursuant to the policies and standards determined by the Commissioner. A person shall have failed to demonstrate that he or she is financially responsible when he or she has shown a disregard in the management of his or her own financial condition; and provided further, that a de- termination that an individual has not shown financial responsibility may include, but shall not be limited to: 1. current outstanding judgments, except judgments solely as a result of medical expenses; 2. current outstanding tax liens or other government liens and filings; 3. foreclosure within the past three years; or 4. a pattern of seriously delinquent accounts within the past three years. (b) Bond Coverage. An Applicant shall submit evidence of sufficient surety bond coverage in such form and with such sureties as may be determined by the Commissioner. The surety bond of the employing entity may be used to satisfy the Applicant’s surety bond requirement. (c) Criminal Background. An Applicant shall consent to a state and federal criminal history record check and furnish to the NMLS a set of the Applicant's fingerprints, in a form acceptable for such purpose, for submission to the Federal Bureau of Investigation, and any governmental agency or en- tity authorized to receive such information for a state, national, and international criminal history background check. (d) Character and Fitness. An Applicant shall submit information demonstrating that the Applicant possesses the character, reputation, integrity, and general fitness such as to command the confidence of the community and to warrant a determination that the Applicant will engage in the business of a Mortgage Loan Originator in an honest, fair, sound, and efficient manner. (e) Pre-licensing Coursework. An Applicant shall submit information demonstrating that he/she has completed a minimum of 20 hours of pre-licensing education, approved by the NMLS, which shall include, without limitation: 1. three hours of federal law and regulations; 2. three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues; 3. two hours of training related to lending standards for the nontraditional mortgage product marketplace; and 4. three hours of state law and regulation, which shall include instruction on state consumer protection laws and other related statutes. (f) Written Examination. An Applicant must pass a qualified written test developed by the NMLS and administered by a test provider approved by the NMLS. An applicant must pass with a test score of not less than 75% correct answers to questions. An applicant may retake the qualified ex- amination three consecutive times with each consecutive taking occurring at least 30 days after the preceding examination. Upon failing three consecutive written examinations, a person shall not be eligible to sit for another written examination for a period of at least six months. (g) Payment of Fees. An Applicant shall pay all applicable fees as a condition of obtaining the Mortgage Loan Originator license. Such fees are nonrefundable. (h) Other Information. An Applicant shall submit such other information relating to the Applicant's personal history and experience as the Commissioner may require. In evaluating an application and requesting information from an Applicant, the Commissioner may be guided by or rely upon the standards set forth in the CSBS/American Association of Residential Mortgage Regulators NMLS Policy Guidebook, as published by the SRR. (3) Incomplete Applications. Mortgage loan originator license applications which are missing mate- rial information shall be held in an incomplete status for a period of 14 calendar days after written notice to the Applicant specifying the nature of the deficiency. If any such deficiency remains out- standing for more than 14 days, the license application may be considered abandoned by the Appli- cant and terminated by the Commissioner, and the Applicant shall be required to submit a new ap- plication and pay all fees associated therewith.