Notice of Significant Events and Proposed Change in Ownership or Personnel

(1) A Licensee shall notify the Commissioner immediately, in writing within one business day, of the occurrence of any of the following significant developments: (a) Filing for bankruptcy or reorganization of the Licensee. (b) The Licensee, its owner(s), officer(s), director(s), or employee(s) being charged with a criminal offense that is in any way related to the mortgage lender or brokerage activities of a Licensee, including but not limited to, the handling and/or reporting of moneys received and/or instruments sold. (c) Receiving notification of the institution of license denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action, in any state against the Licensee, and the reasons thereof. (d) Receiving notification of the initiation of any action by the Attorney General of the Commonwealth or of any other state, pursuant to M.G.L. c. 93A, or any other comparable consumer protection statute, and the reasons thereof. (e) Expiration, termination or default, technical or otherwise, of any existing line of credit or warehouse credit agreement. (f) Suspension or termination of the Licensee's status as an approved seller or seller/servicer by a Government Sponsored Enterprise, or an investor approved under 209 CMR 42.11A(1)(a); or any administrative sanctions imposed against a FHA, VA, or USDA approved lender by the Mortgage Review Board; or any administrative sanctions imposed by the Consumer Financial Protection Bureau; or any other federal financial regulator. (g) Exercise of recourse rights by investors or subsequent assignees of mortgage loans if such loans, in the aggregate, exceed the licensee's net worth exclusive of real property and fixed assets. (h) Initiation of Trustee Process or any other form of attachment on any of the Licensee's assets. (i) Issuance of an interest rate lock commitment in violation of 209 CMR 42.11A. (j) Existence of negative balances, exceeding $ 100, in any operating account at any time or the return of checks, exceeding $ 100, for insufficient funds. (k) Any change to net worth resulting from market valuation or future loss liability or any other change which causes the net worth of the licensee to fall below the requirements of 209 CMR 42.03, 209 CMR 42.05, 209 CMR 42.08, and 209 CMR 42.11A(1)(a). (l) Cancellation by the Licensee of the surety bond required pursuant to 209 CMR 42.03(2)(a)2 or 209 CMR 42.05(2)(a)2 and shall provide a new surety bond to the Commissioner. If the Licensee does not replace the surety bond, the Commissioner shall automatically suspend the license until the Licensee has provided the required bond. (2) A Licensee shall notify the Commissioner immediately, and in writing within five business days, of the occurrence of any of the following significant developments: (a) Filing for bankruptcy or reorganization of any of a Licensee's officers, directors, principal stockholders, or affiliates. (b) Criminal felony arraignment or conviction of any of a Licensee's officers, directors, principal stockholders, or affiliates. (3)(a) 15 days prior to any proposed change in control in the ownership of a Licensee, or among the officers, partners or directors of a Licensee, a notice shall forthwith be filed with the Commissioner who may thereupon cause such investigation to be made as he deems necessary, as if it were a new license. In the case of a corporation, control is defined as a change of ownership by a person or group acting in concert to acquire ten percent of the stock, 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. (b) A notice of change in personnel or ownership shall contain the following information: 1. the name, address and occupation of each proposed officer, partner, director or shareholders; and 2. provide such other information as the Commissioner may require.