209 CMR, § 41.05 - Licensing Standards

(1) A license to engage in the activity of a Mortgage Loan Originator will be issued to an Applicant if the Commissioner, upon review of the application and all other relevant information, determines that all of the requirements of M.G.L. c. 255F and 209 CMR 41.04 have been met.

(2) A mortgage loan originator may be employed by no more than one entity.

(3)

(a) The Commissioner shall deny an application for a Mortgage Loan Originator license if the Commissioner upon review of the application and any other relevant information, determines that the Applicant has:

1. had a mortgage loan originator license revoked in any governmental jurisdiction; provided, however, that a subsequent formal vacation of such revocation shall not be deemed a revocation;

2. been convicted of, or pled guilty, admitted to sufficient facts or nolo contendere to, a felony in a domestic, foreign, or military court:

a. during the seven-year period preceding the date of the application for licensing;

b. at any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering; or

c. has other convictions or admissions to sufficient facts involving fraud, dishonesty, or a breach of trust, or that the applicant has had any adverse civil judgments involving fraudulent dealings;

3. failed to demonstrate financial responsibility, character, reputation, integrity and general fitness such as to command the confidence of the community and to warrant a determination that such Applicant will operate honestly, fairly, soundly and efficiently in the public interest;

4. failed to complete the pre-licensing education requirement described in 209 CMR 41.04(2)(e);

5. failed to pass a written test that meets the test requirement described in 209 CMR 41.04(2)(f); or

6. failed to satisfy the requirements of M.G.L. c. 255F or 209 CMR 41.04.

(b) The Commissioner may also deny such an application if the Applicant has:

1. violated any provision of M.G.L. c. 255F or 209 CMR 41.00;

2. violated or engaged in a pattern of violations of any state or federal law applicable to the conduct of the business of a mortgage loan originator, mortgage broker, mortgage lender, or other financial services provider including, but not limited to, M.G.L. chs. 93A, 183, 183C, 184, 255E;

3. withheld information or made a material misstatement in the license application; or

4. engaged, or will engage, in mortgage origination activities in an unsafe and unsound manner.

(4) An Applicant whose application has been denied under 209 CMR 41.05(3) may seek judicial review of the denial under M.G.L. c. 255F, § 4 in accordance with M.G.L. c. 30A, § 14.

Notes

209 CMR, § 41.05

Amended by Mass Register Issue 1320, eff. 8/26/2016. Amended by Mass Register Issue 1408, eff. 1/10/2020.