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This entry was published on 2014-09-22
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Issuance of a license
§ 599-e. Issuance of a license. 1. Findings. Notwithstanding any other
law, the superintendent shall not issue a mortgage loan origination
license unless he or she makes, at a minimum, the following findings:

(a) No license revocation. That the applicant has never had a mortgage
loan originator authorization, license or license equivalent revoked in
any governmental jurisdiction, except that a subsequent formal vacation
of such revocation shall not be deemed a revocation;

(b) No felony conviction. That the applicant has not been convicted
of, or pled guilty or nolo contendere to, a felony in a domestic,
foreign, or military court:

(i) During the seven-year period preceding the date of the application
for licensing; or

(ii) 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, provided that for purposes of this subdivision, the
superintendent may, in his or her discretion, disregard a conviction
where the felon has been pardoned;

(c) Character and fitness. That the applicant has demonstrated
financial responsibility, character, and general fitness such as to
command the confidence of the community and to warrant a determination
that the MLO will operate honestly, fairly, and efficiently within the
purposes of this article;

(d) Pre-licensing education. That the applicant has completed the
pre-licensing education requirement described in section five hundred
ninety-nine-f of this article;

(e) Written test. That the applicant has passed a written test that
meets the test requirement described in section five hundred
ninety-nine-g of this article;

(f) Surety bond. That the applicant has met the surety bond
requirement described in section five hundred ninety-nine-k of this
article; and

(g) Affiliation. Unless the superintendent shall have waived the
affiliation requirement pursuant to regulations adopted by the
superintendent, that the applicant is employed by, or is an independent
contractor of (i) an originating entity, (ii) solely in the case of a
mortgage loan originator engaged in the origination of residential
mortgage loans on manufactured homes, an entity licensed under article
nine or eleven-B of this chapter, or (iii) in the case of a mortgage
loan originator engaged in mortgage loan servicing and employed by a
mortgage loan servicer, an entity registered as a mortgage loan servicer
under article twelve-D of this chapter or exempt from registration under
such article. A mortgage loan originator may not be simultaneously
employed or affiliated with more than one originating entity.

2. Disqualifying associations. The superintendent may refuse to issue
a license pursuant to this article if he or she shall find that the
applicant (a) has been a director, partner, or substantial stockholder
of an originating entity which has had a registration or license revoked
by the superintendent or a regulator of another state that regulates
such originating entity, or (b) has been an employee, officer or agent
of, or a consultant to, an originating entity that has had a
registration or license revoked by the superintendent or a regulator of
another state that regulates such originating entity where such person
shall have been found by the superintendent or by such regulator of
another state to bear responsibility for the acts resulting in such
revocation. For the purposes of this subdivision, a person shall be
deemed to have been convicted of a crime if such person shall have pled
guilty to a charge thereof before a court or magistrate, or shall have
been found guilty thereof by the decision or judgment of a court or
magistrate or by the verdict of a jury, irrespective of the
pronouncement of sentence or the suspension thereof.

3. Issuance of a license. The superintendent, after making the
findings required by subdivision one of this section shall thereupon
issue a license to the applicant as mortgage loan originator. The
superintendent shall transmit one copy of such certificate to the
applicant and file another in his or her office, and shall transmit
notice of approval of such application, in such form as the
superintendent deems appropriate, to the originating entity for which
the applicant is providing services. Such license shall be deemed to
terminate at the end of the annual license period, unless such license
is renewed in accordance with section five hundred ninety-nine-i of this