Section 11: Administration and enforcement of chapter
Section 11. (a) The commissioner may for the administration and enforcement of this chapter, pursuant to chapter 30A: (i) deny, suspend, revoke, condition or decline to renew a license for a violation of this chapter, or of any rule or regulation issued under this chapter or of any order or directive entered under this chapter; (ii) deny, suspend, revoke, condition or decline to renew a license if an applicant or licensee fails at any time to meet the requirements of section 4 or section 7, or withholds information or makes a material misstatement in an application for a license or renewal of a license; (iii) order restitution against persons subject to this chapter for violations of this chapter; (iv) impose fines on persons subject to this chapter pursuant to subsections (b) and (c); (v) order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist; (vi) order or direct persons subject to this chapter to cease any activities inconsistent with or in violation of this chapter, including immediate temporary orders to cease and desist; (vii) enter immediate temporary orders to cease business under a license if the commissioner determines that such license was erroneously granted or the licensee is currently in violation of this chapter; or (viii) order or direct such other affirmative action as the commissioner deems necessary.
(b) The commissioner may impose a civil assessment on a person subject to this chapter, if the commissioner finds, on the record after notice and opportunity for hearing, that such person has violated or failed to comply with any requirement of this chapter or any regulation promulgated or order issued by the commissioner.
(c) The maximum amount of a civil assessment imposed by the commissioner for violation of this chapter shall not exceed $25,000; provided, however, that each violation or failure to comply with any directive or order of the commissioner shall constitute separate and distinct violations or failures for purposes of imposing civil assessments.
(d)(i) Whenever the commissioner determines that any person has, directly or indirectly, violated this chapter or any rule or regulation promulgated hereunder or any order issued by the commissioner pursuant to this chapter or any written agreement entered between the licensee and the commissioner, the commissioner may serve upon that person a written notice of intent to: (1) prohibit the person from performing in the capacity of a principal employee on behalf of any licensee for a period of time that the commissioner considers necessary; (2) prohibit the person from obtaining a license from the commissioner for a period up to 36 months following the effective date of an order issued under clause (ii) or (iii); or (3) prohibit the person from any further actions, in any manner, as a mortgage loan originator or to prohibit the person from being employed by, as agent of, or operating on behalf of a licensee under this chapter or any other business which requires a license from the commissioner.
(ii) A written notice issued under clause (i) shall contain a written statement of the facts that support the prohibition and shall give notice of an opportunity for a hearing to be held thereon. The hearing shall occur not more than 30 days after the date of service upon the commissioner requesting a hearing. If the person fails to submit a request for a hearing within 20 days of service of notice under clause (i), or otherwise fails to appear in person or by a duly authorized representative, the party shall be considered to have consented to the issuance of an order of prohibition in accordance with the notice.
(iii) In the event that consent is granted by operation of clause (ii), or if after a hearing the commissioner finds that any of the grounds specified in the notice have been established, the commissioner may issue an order of prohibition in accordance with clause (i) as the commissioner finds appropriate.
(iv) An order issued under clauses (ii) or (iii) shall be effective upon service upon the person who is the subject of the order. The commissioner shall also serve a copy of the order upon the licensee of which the person is an employee or on whose behalf the person is performing. The order shall remain in effect and enforceable until it is modified, terminated, suspended or set aside by the commissioner or a court of competent jurisdiction.
(v) Except as consented to in writing by the commissioner, any person who, pursuant to an order issued under clauses (ii) or (iii) has been prohibited from participating in whole or in part as a mortgage loan originator shall not, while the order is in effect, continue or commence to perform in the capacity of a mortgage loan originator, or otherwise participate in any manner, if so prohibited by order of the commissioner, in the conduct of the affairs of: (1) a mortgage loan originator licensed under this chapter; (2) any other business which requires a license from the commissioner; or (3) any bank as defined under section 1 of chapter 167 or any subsidiary thereof.
(e) The commissioner may suspend, revoke or refuse to renew the license of the entity employing any licensed mortgage originator upon finding that: (i) the entity knew or reasonably should have known that the mortgage loan originator violated this chapter or any rule or regulation promulgated hereunder, or any other law applicable to the conduct of its business; (ii) the entity knew of any fact or condition which, if it had existed at the time of the original application for such license, would have warranted the commissioner in refusing to issue such license; or (iii) the mortgage loan originator committed any fraud, misappropriated funds or misrepresented any of the material particulars of a mortgage loan transaction approved by the entity.
(f) Nothing in this chapter shall preclude the prosecution of a criminal action arising from an act or omission for which a civil assessment has been imposed.