§ 53‑244.050. Licenseand registration application; claim of exemption.
(a) Applicants for alicense shall apply through the Nationwide Mortgage Licensing System andRegistry on a form acceptable to the Commissioner, including the followinginformation:
(1) The applicant's nameand address, including street address, mailing address, e‑mail, telephonecontact information, and social security number or taxpayer identificationnumber.
(2) The applicant's formand place of organization, if applicable.
(3) The applicant'sproposed method of and locations for doing business, if applicable.
(4) The qualificationsand business history of the applicant and, if applicable, the business historyof any partner, officer, or director, any person occupying a similar status orperforming similar functions, or any person directly or indirectly controllingthe applicant, including:
a. A description of anyinjunction or administrative order by any state or federal authority to whichthe person is or has been subject;
b. Any conviction,within the past 10 years, of a misdemeanor involving moral turpitude or anyfraud, false statement or omission, any theft or wrongful taking of property,bribery, perjury, forgery, counterfeiting, extortion, or conspiracy to commitany of these offenses, or involving any financial service or financial service‑related business; and
c. Any felonyconvictions.
(5) With respect to anapplication for licensing as a mortgage lender, mortgage broker, or mortgageservicer, the applicant's financial condition, credit history, and businesshistory, and, with respect to an application for licensing as a mortgage loanoriginator, the applicant's credit history and business history.
(6) The applicant'sconsent to a federal and State criminal history record check and a set of theapplicant's fingerprints in a form acceptable to the Commissioner. In the caseof an applicant that is a person other than a natural person, each individualwho has control of the applicant or who is the qualifying individual or a branchmanager shall consent to a federal and State criminal history record check andsubmit a set of that individual's fingerprints pursuant to this subdivision.
(b) The eligibilityrequirements for an application for licensure under this Article are as follows:
(1) Each individualapplicant for licensure as a mortgage loan originator or qualifying individualshall:
a. Be at least 18 yearsof age;
b. Have satisfactorilycompleted, within the three years immediately preceding the date ofapplication, the mortgage lending prelicensing education as required under G.S.53‑244.070; and
c. Have passed, withinthe three years immediately preceding the date of application, the testrequired under G.S. 53‑244.080.
(2) Each applicant forlicensure as a mortgage broker or mortgage lender or mortgage servicer at thetime of application shall comply with the following requirements:
a. If the applicant isa sole proprietor, the applicant shall have at least three years of experiencein residential mortgage lending or other experience or meet competencyrequirements as the Commissioner may impose.
b. If the applicant isa corporation, limited liability company, general or limited partnership,association, or other group engaged in a joint enterprise, however organized,at least one of its principal officers, managers, or general partners shallhave three years of experience in residential mortgage lending or otherexperience or meet competency requirements as the Commissioner may impose.
c. If the applicantwill be a qualifying individual or branch manager, the applicant shall have atleast three years of experience in residential mortgage lending or otherexperience or meet competency requirements as the Commissioner may impose.
(3) If an individualapplicant to be licensed as a mortgage broker is a licensed mortgage loanoriginator and meets the requirements for licensure as a mortgage broker, butis not an employee as defined in G.S. 53‑244.030(10) and does not meetthe experience requirements of G.S. 53‑244.050(b)(2)a., the individualmay be licensed as an exclusive mortgage broker upon compliance with all of thefollowing:
a. Successfullycompletes a 16‑hour residential mortgage lending course approved by theCommissioner supplementing the prelicensing education required under G.S. 53‑244.070.
b. Acts exclusively asa mortgage broker and shall be an agent for a single mortgage lender ormortgage broker licensee or a single exempt mortgage lender, who:
1. Shall be responsiblefor supervising the broker as required by this Article and in accordance with aplan of supervision approved by the Commissioner in the Commissioner'sdiscretion;
2. Shall sign thelicense application of the applicant; and
3. Shall be jointly andseverally liable with the broker for any claims arising from the broker'smortgage brokering activities.
c. Shall be compensatedon a basis that is not dependent upon the interest rate, fees, or other termsof the loan brokered, provided that this sub‑subdivision shall notprohibit compensation based on the principal balance of the loan.
d. Shall offer onlyfixed‑term, fixed‑rate, fully amortizing mortgage loans originatedby a single mortgage lender with substantially equal monthly mortgage paymentsand without a prepayment penalty, unless the Commissioner shall approve, in theCommissioner's discretion, the sale of other mortgage loan products for thatlender.
e. Shall not handleborrower or other third‑party funds in connection with the brokering orclosing of mortgage loans.
f. Shall meet thesurety bond requirement of a mortgage broker or otherwise be covered by asurety bond provided by the mortgage lender or broker licensee or exemptmortgage lender of the lesser of five million dollars ($5,000,000) or an amountequal to or greater than the sum of the surety bond requirements for eachexclusive mortgage broker supervised by the broker or lender.
(c) In connection withan application for licensing as a mortgage loan originator, mortgage lender,mortgage broker, or mortgage servicer, the applicant and its owners, qualifyingindividual, and controlling persons shall furnish to the Nationwide MortgageLicensing System and Registry information concerning the applicant's identity,including:
(1) Fingerprints forsubmission to the Federal Bureau of Investigation and any governmental agencyor entity authorized to receive such information for a state, national, andinternational criminal history background check.
(2) Personal history andexperience in a form prescribed by the Nationwide Mortgage Licensing System andRegistry and the Commissioner to obtain:
a. Independent creditreports obtained from a consumer reporting agency described in section 603(p)of the Fair Credit Reporting Act; and
b. Information relatedto any administrative, civil, or criminal findings by any governmentaljurisdiction.
(3) The personal historymay be obtained by the Commissioner at any time and the fingerprint informationshall be furnished upon the Commissioner's request.
(4) An authorization forthe Commissioner to obtain personal history or fingerprint information at anytime.
(d) For the purposes ofthis section and in order to reduce the points of contact that the FederalBureau of Investigation may have to maintain for purposes of the criminalinformation required by this section, the Commissioner may use the NationwideMortgage Licensing System and Registry as a channeling agent for requestinginformation from and distributing information to the Department of Justice orany governmental agency.
(e) For the purposes ofthis section and in order to reduce the points of contact that the Commissionermay have to maintain for purposes of the noncriminal information required bythis section, the Commissioner may use the Nationwide Mortgage Licensing Systemand Registry as a channeling agent for requesting and distributing informationto and from any source so directed by the Commissioner.
(f) For purposes ofthis section, the Commissioner may request and the North Carolina Department ofJustice may provide a criminal record check to the Commissioner for any personwho has applied for or holds a mortgage lender, mortgage broker, mortgageservicer, or mortgage loan originator license as provided by this section. TheCommissioner shall provide the Department of Justice, along with the request,the fingerprints of the person, any additional information required by theDepartment of Justice, and a form signed by the person consenting to the checkof the criminal record and to the use of the fingerprints and other identifyinginformation required by the State or national repositories. The person'sfingerprints shall be forwarded to the State Bureau of Investigation for asearch of the State's criminal history record file, and the State Bureau ofInvestigation shall forward a set of the fingerprints to the Federal Bureau ofInvestigation for a national criminal history check. The Department of Justicemay charge a fee for each person for conducting the checks of criminal historyrecords authorized by this section.
(g) Except as providedby subsection (h) of this section, persons engaged in the mortgage business andexempt from licensure pursuant to G.S. 53‑244.040(d)(5) shall notify theCommissioner in order to claim and confirm the exemption and to facilitate thereferral of consumers that contact the Commissioner. The Commissioner shallprescribe a form for such a claim of exemption that shall contain:
(1) The name of theexempt person;
(2) The basis of theexempt status of the exempt person;
(3) The principalbusiness address and contact information for the exempt person; and
(4) The State or federalregulatory authority responsible for the exempt person's supervision,examination, or regulation.
(h) A State orfederally chartered credit union may claim and confirm an exemption from thisArticle by notifying the Administrator of the Credit Union Division of theDepartment of Commerce and providing substantially the same informationrequired by subsection (g) of this section.
(i) The Commissionershall keep all information pursuant to this section privileged, in accordancewith applicable State law and federal guidelines, and the information shall beconfidential and shall not be a public record under Chapter 132 of the GeneralStatutes. (2009‑374,s. 2.)
§ 53‑244.050. Licenseand registration application; claim of exemption.
(a) Applicants for alicense shall apply through the Nationwide Mortgage Licensing System andRegistry on a form acceptable to the Commissioner, including the followinginformation:
(1) The applicant's nameand address, including street address, mailing address, e‑mail, telephonecontact information, and social security number or taxpayer identificationnumber.
(2) The applicant's formand place of organization, if applicable.
(3) The applicant'sproposed method of and locations for doing business, if applicable.
(4) The qualificationsand business history of the applicant and, if applicable, the business historyof any partner, officer, or director, any person occupying a similar status orperforming similar functions, or any person directly or indirectly controllingthe applicant, including:
a. A description of anyinjunction or administrative order by any state or federal authority to whichthe person is or has been subject;
b. Any conviction,within the past 10 years, of a misdemeanor involving moral turpitude or anyfraud, false statement or omission, any theft or wrongful taking of property,bribery, perjury, forgery, counterfeiting, extortion, or conspiracy to commitany of these offenses, or involving any financial service or financial service‑related business; and
c. Any felonyconvictions.
(5) With respect to anapplication for licensing as a mortgage lender, mortgage broker, or mortgageservicer, the applicant's financial condition, credit history, and businesshistory, and, with respect to an application for licensing as a mortgage loanoriginator, the applicant's credit history and business history.
(6) The applicant'sconsent to a federal and State criminal history record check and a set of theapplicant's fingerprints in a form acceptable to the Commissioner. In the caseof an applicant that is a person other than a natural person, each individualwho has control of the applicant or who is the qualifying individual or a branchmanager shall consent to a federal and State criminal history record check andsubmit a set of that individual's fingerprints pursuant to this subdivision.
(b) The eligibilityrequirements for an application for licensure under this Article are as follows:
(1) Each individualapplicant for licensure as a mortgage loan originator or qualifying individualshall:
a. Be at least 18 yearsof age;
b. Have satisfactorilycompleted, within the three years immediately preceding the date ofapplication, the mortgage lending prelicensing education as required under G.S.53‑244.070; and
c. Have passed, withinthe three years immediately preceding the date of application, the testrequired under G.S. 53‑244.080.
(2) Each applicant forlicensure as a mortgage broker or mortgage lender or mortgage servicer at thetime of application shall comply with the following requirements:
a. If the applicant isa sole proprietor, the applicant shall have at least three years of experiencein residential mortgage lending or other experience or meet competencyrequirements as the Commissioner may impose.
b. If the applicant isa corporation, limited liability company, general or limited partnership,association, or other group engaged in a joint enterprise, however organized,at least one of its principal officers, managers, or general partners shallhave three years of experience in residential mortgage lending or otherexperience or meet competency requirements as the Commissioner may impose.
c. If the applicantwill be a qualifying individual or branch manager, the applicant shall have atleast three years of experience in residential mortgage lending or otherexperience or meet competency requirements as the Commissioner may impose.
(3) If an individualapplicant to be licensed as a mortgage broker is a licensed mortgage loanoriginator and meets the requirements for licensure as a mortgage broker, butis not an employee as defined in G.S. 53‑244.030(10) and does not meetthe experience requirements of G.S. 53‑244.050(b)(2)a., the individualmay be licensed as an exclusive mortgage broker upon compliance with all of thefollowing:
a. Successfullycompletes a 16‑hour residential mortgage lending course approved by theCommissioner supplementing the prelicensing education required under G.S. 53‑244.070.
b. Acts exclusively asa mortgage broker and shall be an agent for a single mortgage lender ormortgage broker licensee or a single exempt mortgage lender, who:
1. Shall be responsiblefor supervising the broker as required by this Article and in accordance with aplan of supervision approved by the Commissioner in the Commissioner'sdiscretion;
2. Shall sign thelicense application of the applicant; and
3. Shall be jointly andseverally liable with the broker for any claims arising from the broker'smortgage brokering activities.
c. Shall be compensatedon a basis that is not dependent upon the interest rate, fees, or other termsof the loan brokered, provided that this sub‑subdivision shall notprohibit compensation based on the principal balance of the loan.
d. Shall offer onlyfixed‑term, fixed‑rate, fully amortizing mortgage loans originatedby a single mortgage lender with substantially equal monthly mortgage paymentsand without a prepayment penalty, unless the Commissioner shall approve, in theCommissioner's discretion, the sale of other mortgage loan products for thatlender.
e. Shall not handleborrower or other third‑party funds in connection with the brokering orclosing of mortgage loans.
f. Shall meet thesurety bond requirement of a mortgage broker or otherwise be covered by asurety bond provided by the mortgage lender or broker licensee or exemptmortgage lender of the lesser of five million dollars ($5,000,000) or an amountequal to or greater than the sum of the surety bond requirements for eachexclusive mortgage broker supervised by the broker or lender.
(c) In connection withan application for licensing as a mortgage loan originator, mortgage lender,mortgage broker, or mortgage servicer, the applicant and its owners, qualifyingindividual, and controlling persons shall furnish to the Nationwide MortgageLicensing System and Registry information concerning the applicant's identity,including:
(1) Fingerprints forsubmission to the Federal Bureau of Investigation and any governmental agencyor entity authorized to receive such information for a state, national, andinternational criminal history background check.
(2) Personal history andexperience in a form prescribed by the Nationwide Mortgage Licensing System andRegistry and the Commissioner to obtain:
a. Independent creditreports obtained from a consumer reporting agency described in section 603(p)of the Fair Credit Reporting Act; and
b. Information relatedto any administrative, civil, or criminal findings by any governmentaljurisdiction.
(3) The personal historymay be obtained by the Commissioner at any time and the fingerprint informationshall be furnished upon the Commissioner's request.
(4) An authorization forthe Commissioner to obtain personal history or fingerprint information at anytime.
(d) For the purposes ofthis section and in order to reduce the points of contact that the FederalBureau of Investigation may have to maintain for purposes of the criminalinformation required by this section, the Commissioner may use the NationwideMortgage Licensing System and Registry as a channeling agent for requestinginformation from and distributing information to the Department of Justice orany governmental agency.
(e) For the purposes ofthis section and in order to reduce the points of contact that the Commissionermay have to maintain for purposes of the noncriminal information required bythis section, the Commissioner may use the Nationwide Mortgage Licensing Systemand Registry as a channeling agent for requesting and distributing informationto and from any source so directed by the Commissioner.
(f) For purposes ofthis section, the Commissioner may request and the North Carolina Department ofJustice may provide a criminal record check to the Commissioner for any personwho has applied for or holds a mortgage lender, mortgage broker, mortgageservicer, or mortgage loan originator license as provided by this section. TheCommissioner shall provide the Department of Justice, along with the request,the fingerprints of the person, any additional information required by theDepartment of Justice, and a form signed by the person consenting to the checkof the criminal record and to the use of the fingerprints and other identifyinginformation required by the State or national repositories. The person'sfingerprints shall be forwarded to the State Bureau of Investigation for asearch of the State's criminal history record file, and the State Bureau ofInvestigation shall forward a set of the fingerprints to the Federal Bureau ofInvestigation for a national criminal history check. The Department of Justicemay charge a fee for each person for conducting the checks of criminal historyrecords authorized by this section.
(g) Except as providedby subsection (h) of this section, persons engaged in the mortgage business andexempt from licensure pursuant to G.S. 53‑244.040(d)(5) shall notify theCommissioner in order to claim and confirm the exemption and to facilitate thereferral of consumers that contact the Commissioner. The Commissioner shallprescribe a form for such a claim of exemption that shall contain:
(1) The name of theexempt person;
(2) The basis of theexempt status of the exempt person;
(3) The principalbusiness address and contact information for the exempt person; and
(4) The State or federalregulatory authority responsible for the exempt person's supervision,examination, or regulation.
(h) A State orfederally chartered credit union may claim and confirm an exemption from thisArticle by notifying the Administrator of the Credit Union Division of theDepartment of Commerce and providing substantially the same informationrequired by subsection (g) of this section.
(i) The Commissionershall keep all information pursuant to this section privileged, in accordancewith applicable State law and federal guidelines, and the information shall beconfidential and shall not be a public record under Chapter 132 of the GeneralStatutes. (2009‑374,s. 2.)
§ 53‑244.050. Licenseand registration application; claim of exemption.
(a) Applicants for alicense shall apply through the Nationwide Mortgage Licensing System andRegistry on a form acceptable to the Commissioner, including the followinginformation:
(1) The applicant's nameand address, including street address, mailing address, e‑mail, telephonecontact information, and social security number or taxpayer identificationnumber.
(2) The applicant's formand place of organization, if applicable.
(3) The applicant'sproposed method of and locations for doing business, if applicable.
(4) The qualificationsand business history of the applicant and, if applicable, the business historyof any partner, officer, or director, any person occupying a similar status orperforming similar functions, or any person directly or indirectly controllingthe applicant, including:
a. A description of anyinjunction or administrative order by any state or federal authority to whichthe person is or has been subject;
b. Any conviction,within the past 10 years, of a misdemeanor involving moral turpitude or anyfraud, false statement or omission, any theft or wrongful taking of property,bribery, perjury, forgery, counterfeiting, extortion, or conspiracy to commitany of these offenses, or involving any financial service or financial service‑related business; and
c. Any felonyconvictions.
(5) With respect to anapplication for licensing as a mortgage lender, mortgage broker, or mortgageservicer, the applicant's financial condition, credit history, and businesshistory, and, with respect to an application for licensing as a mortgage loanoriginator, the applicant's credit history and business history.
(6) The applicant'sconsent to a federal and State criminal history record check and a set of theapplicant's fingerprints in a form acceptable to the Commissioner. In the caseof an applicant that is a person other than a natural person, each individualwho has control of the applicant or who is the qualifying individual or a branchmanager shall consent to a federal and State criminal history record check andsubmit a set of that individual's fingerprints pursuant to this subdivision.
(b) The eligibilityrequirements for an application for licensure under this Article are as follows:
(1) Each individualapplicant for licensure as a mortgage loan originator or qualifying individualshall:
a. Be at least 18 yearsof age;
b. Have satisfactorilycompleted, within the three years immediately preceding the date ofapplication, the mortgage lending prelicensing education as required under G.S.53‑244.070; and
c. Have passed, withinthe three years immediately preceding the date of application, the testrequired under G.S. 53‑244.080.
(2) Each applicant forlicensure as a mortgage broker or mortgage lender or mortgage servicer at thetime of application shall comply with the following requirements:
a. If the applicant isa sole proprietor, the applicant shall have at least three years of experiencein residential mortgage lending or other experience or meet competencyrequirements as the Commissioner may impose.
b. If the applicant isa corporation, limited liability company, general or limited partnership,association, or other group engaged in a joint enterprise, however organized,at least one of its principal officers, managers, or general partners shallhave three years of experience in residential mortgage lending or otherexperience or meet competency requirements as the Commissioner may impose.
c. If the applicantwill be a qualifying individual or branch manager, the applicant shall have atleast three years of experience in residential mortgage lending or otherexperience or meet competency requirements as the Commissioner may impose.
(3) If an individualapplicant to be licensed as a mortgage broker is a licensed mortgage loanoriginator and meets the requirements for licensure as a mortgage broker, butis not an employee as defined in G.S. 53‑244.030(10) and does not meetthe experience requirements of G.S. 53‑244.050(b)(2)a., the individualmay be licensed as an exclusive mortgage broker upon compliance with all of thefollowing:
a. Successfullycompletes a 16‑hour residential mortgage lending course approved by theCommissioner supplementing the prelicensing education required under G.S. 53‑244.070.
b. Acts exclusively asa mortgage broker and shall be an agent for a single mortgage lender ormortgage broker licensee or a single exempt mortgage lender, who:
1. Shall be responsiblefor supervising the broker as required by this Article and in accordance with aplan of supervision approved by the Commissioner in the Commissioner'sdiscretion;
2. Shall sign thelicense application of the applicant; and
3. Shall be jointly andseverally liable with the broker for any claims arising from the broker'smortgage brokering activities.
c. Shall be compensatedon a basis that is not dependent upon the interest rate, fees, or other termsof the loan brokered, provided that this sub‑subdivision shall notprohibit compensation based on the principal balance of the loan.
d. Shall offer onlyfixed‑term, fixed‑rate, fully amortizing mortgage loans originatedby a single mortgage lender with substantially equal monthly mortgage paymentsand without a prepayment penalty, unless the Commissioner shall approve, in theCommissioner's discretion, the sale of other mortgage loan products for thatlender.
e. Shall not handleborrower or other third‑party funds in connection with the brokering orclosing of mortgage loans.
f. Shall meet thesurety bond requirement of a mortgage broker or otherwise be covered by asurety bond provided by the mortgage lender or broker licensee or exemptmortgage lender of the lesser of five million dollars ($5,000,000) or an amountequal to or greater than the sum of the surety bond requirements for eachexclusive mortgage broker supervised by the broker or lender.
(c) In connection withan application for licensing as a mortgage loan originator, mortgage lender,mortgage broker, or mortgage servicer, the applicant and its owners, qualifyingindividual, and controlling persons shall furnish to the Nationwide MortgageLicensing System and Registry information concerning the applicant's identity,including:
(1) Fingerprints forsubmission to the Federal Bureau of Investigation and any governmental agencyor entity authorized to receive such information for a state, national, andinternational criminal history background check.
(2) Personal history andexperience in a form prescribed by the Nationwide Mortgage Licensing System andRegistry and the Commissioner to obtain:
a. Independent creditreports obtained from a consumer reporting agency described in section 603(p)of the Fair Credit Reporting Act; and
b. Information relatedto any administrative, civil, or criminal findings by any governmentaljurisdiction.
(3) The personal historymay be obtained by the Commissioner at any time and the fingerprint informationshall be furnished upon the Commissioner's request.
(4) An authorization forthe Commissioner to obtain personal history or fingerprint information at anytime.
(d) For the purposes ofthis section and in order to reduce the points of contact that the FederalBureau of Investigation may have to maintain for purposes of the criminalinformation required by this section, the Commissioner may use the NationwideMortgage Licensing System and Registry as a channeling agent for requestinginformation from and distributing information to the Department of Justice orany governmental agency.
(e) For the purposes ofthis section and in order to reduce the points of contact that the Commissionermay have to maintain for purposes of the noncriminal information required bythis section, the Commissioner may use the Nationwide Mortgage Licensing Systemand Registry as a channeling agent for requesting and distributing informationto and from any source so directed by the Commissioner.
(f) For purposes ofthis section, the Commissioner may request and the North Carolina Department ofJustice may provide a criminal record check to the Commissioner for any personwho has applied for or holds a mortgage lender, mortgage broker, mortgageservicer, or mortgage loan originator license as provided by this section. TheCommissioner shall provide the Department of Justice, along with the request,the fingerprints of the person, any additional information required by theDepartment of Justice, and a form signed by the person consenting to the checkof the criminal record and to the use of the fingerprints and other identifyinginformation required by the State or national repositories. The person'sfingerprints shall be forwarded to the State Bureau of Investigation for asearch of the State's criminal history record file, and the State Bureau ofInvestigation shall forward a set of the fingerprints to the Federal Bureau ofInvestigation for a national criminal history check. The Department of Justicemay charge a fee for each person for conducting the checks of criminal historyrecords authorized by this section.
(g) Except as providedby subsection (h) of this section, persons engaged in the mortgage business andexempt from licensure pursuant to G.S. 53‑244.040(d)(5) shall notify theCommissioner in order to claim and confirm the exemption and to facilitate thereferral of consumers that contact the Commissioner. The Commissioner shallprescribe a form for such a claim of exemption that shall contain:
(1) The name of theexempt person;
(2) The basis of theexempt status of the exempt person;
(3) The principalbusiness address and contact information for the exempt person; and
(4) The State or federalregulatory authority responsible for the exempt person's supervision,examination, or regulation.
(h) A State orfederally chartered credit union may claim and confirm an exemption from thisArticle by notifying the Administrator of the Credit Union Division of theDepartment of Commerce and providing substantially the same informationrequired by subsection (g) of this section.
(i) The Commissionershall keep all information pursuant to this section privileged, in accordancewith applicable State law and federal guidelines, and the information shall beconfidential and shall not be a public record under Chapter 132 of the GeneralStatutes. (2009‑374,s. 2.)
