§ 53‑244.115. Investigation and examination authority.
(a) For purposes ofinitial licensing, license renewal, suspension, conditioning, revocation, ortermination, or general or specific inquiry, investigation, or examination todetermine compliance with this Article, the Commissioner may, at the expense ofthe applicant or licensee, access, receive, and use any books, accounts,records, files, documents, information, or evidence, including:
(1) Criminal, civil, andadministrative history information, including nonconviction data;
(2) Personal history andexperience information, including independent credit reports obtained from aconsumer reporting agency described in section 603(p) of the Fair CreditReporting Act; and
(3) Any other documents,information, or evidence the Commissioner deems relevant to the inquiry,investigation, or examination regardless of the location, possession, control,or custody of the documents, information, or evidence.
(b) For purposes ofinvestigating violations or complaints arising under this Article, or for thepurposes of examination, the Commissioner may review, investigate, or examineany licensee, individual, or person subject to this Article as often asnecessary in order to carry out the purposes of this Article. The Commissionermay interview the officer, principals, person with control, qualifiedindividual, mortgage loan originators, employees, independent contractors,agents, and customers of the licensee, individual, or person concerning theirbusiness. The Commissioner may direct, subpoena, or order the attendance of andexamine under oath all persons whose testimony may be required about the loansor the business or subject matter of any examination or investigation and maydirect, subpoena, or order the person to produce books, accounts, records,files, and any other documents the Commissioner deems relevant to the inquiry.The reasonable cost of the investigation or examination shall be chargedagainst the licensee, individual, or person subject to this Article.
(c) Each licensee,individual, or person subject to this Article shall make available to theCommissioner upon request the books and records relating to the operations ofthe licensee, individual, or person. No licensee, individual, or person subjectto investigation or examination under this section may knowingly withhold,abstract, remove, mutilate, destroy, or secrete any books, records, computerrecords, or other information. Each licensee, individual, or person subject tothis Article shall also make available for interview by the Commissioner theofficers, principals, persons with control, qualified individuals, mortgageloan originators, employees, independent contractors, agents, and customers ofthe licensee, individual, or person concerning their business.
(d) Each licensee,individual, or person subject to this Article shall make or compile suchreports or prepare other information as may be directed or requested by theCommissioner in order to carry out the purposes of this section, including:
(1) Accountingcompilations;
(2) Information listsand data concerning loan transactions in a format prescribed by theCommissioner;
(3) Periodic reports,including:
a. Annual ReportQuestionnaire,
b. Servicer ActivityReport,
c. Servicer Schedule ofthe Ranges of Costs and Fees,
d. Lender/ServicerAudited Statements of Financial Condition,
e. Broker CertifiedStatements of Financial Condition, and
f. Quarterly LoanOrigination Reports.
(4) Any otherinformation deemed necessary to carry out the purposes of this section.
(e) In making anyexamination or investigation authorized by this Article, the Commissioner maycontrol access to any documents and records of the licensee or person underexamination or investigation. The Commissioner may take possession of thedocuments and records or place a person in exclusive charge of the documentsand records in the place where they are usually kept. During the period ofcontrol, no individual or person shall remove or attempt to remove any of thedocuments and records except pursuant to a court order or with the consent ofthe Commissioner. Unless the Commissioner has reasonable grounds to believe thedocuments or records of the licensee have been or are at risk of being alteredor destroyed for purposes of concealing a violation of this Article, thelicensee or owner of the documents and records shall have access to thedocuments or records as necessary to conduct its ordinary business.
(f) In order to carryout the purposes of this section, the Commissioner may:
(1) Retain attorneys,accountants, or other professionals and specialists as examiners, auditors, orinvestigators to conduct or assist in the conduct of examinations orinvestigations;
(2) Enter intoagreements or relationships with other government officials or regulatoryassociations in order to improve efficiencies and reduce regulatory burden bysharing resources, standardized or uniform methods or procedures, documents,records, information, or evidence obtained under this section;
(3) Use, hire, contract,or employ public or privately available analytical systems, methods, orsoftware to examine or investigate the licensee, individual, or person subjectto this Article;
(4) Accept and rely onexamination or investigation reports made by other government officials, withinor without this State; or
(5) Accept audit reportsmade by an independent certified public accountant for the licensee,individual, or person in the course of that part of the examination coveringthe same general subject matter as the audit and may incorporate the auditreport in the report of the examination, report of investigation, or otherwriting of the Commissioner.
(g) In addition to theauthority granted by G.S. 53‑244.113 and G.S. 53‑244.115, theCommissioner is authorized to take action, including summary suspension of thelicense, if the licensee fails, within 20 days or a lesser time if specificallyrequested for good cause, to:
(1) Respond to inquiriesfrom the Commissioner or the Commissioner's designee regarding any complaintsfiled against the licensee that allege or appear to involve violation of thisArticle or any law or rule affecting the mortgage lending business;
(2) Respond to andcooperate fully with notices from the Commissioner or the Commissioner'sdesignee relating to the scheduling and conducting of an examination orinvestigation under this Article; or
(3) Consent to acriminal history record check. The refusal shall constitute grounds for theCommissioner to deny licensure to the applicant as well as to any entity:
a. By whom or by whichthe applicant is employed,
b. Over which theapplicant has control, or
c. As to which theapplicant is the current or proposed qualifying individual or a current orproposed branch manager.
(h) The authority ofthis section shall remain in effect, whether a licensee, individual, or personsubject to this Article acts or claims to act under any licensing law of theState, or claims to act without such authority. (2009‑374, s. 2.)
§ 53‑244.115. Investigation and examination authority.
(a) For purposes ofinitial licensing, license renewal, suspension, conditioning, revocation, ortermination, or general or specific inquiry, investigation, or examination todetermine compliance with this Article, the Commissioner may, at the expense ofthe applicant or licensee, access, receive, and use any books, accounts,records, files, documents, information, or evidence, including:
(1) Criminal, civil, andadministrative history information, including nonconviction data;
(2) Personal history andexperience information, including independent credit reports obtained from aconsumer reporting agency described in section 603(p) of the Fair CreditReporting Act; and
(3) Any other documents,information, or evidence the Commissioner deems relevant to the inquiry,investigation, or examination regardless of the location, possession, control,or custody of the documents, information, or evidence.
(b) For purposes ofinvestigating violations or complaints arising under this Article, or for thepurposes of examination, the Commissioner may review, investigate, or examineany licensee, individual, or person subject to this Article as often asnecessary in order to carry out the purposes of this Article. The Commissionermay interview the officer, principals, person with control, qualifiedindividual, mortgage loan originators, employees, independent contractors,agents, and customers of the licensee, individual, or person concerning theirbusiness. The Commissioner may direct, subpoena, or order the attendance of andexamine under oath all persons whose testimony may be required about the loansor the business or subject matter of any examination or investigation and maydirect, subpoena, or order the person to produce books, accounts, records,files, and any other documents the Commissioner deems relevant to the inquiry.The reasonable cost of the investigation or examination shall be chargedagainst the licensee, individual, or person subject to this Article.
(c) Each licensee,individual, or person subject to this Article shall make available to theCommissioner upon request the books and records relating to the operations ofthe licensee, individual, or person. No licensee, individual, or person subjectto investigation or examination under this section may knowingly withhold,abstract, remove, mutilate, destroy, or secrete any books, records, computerrecords, or other information. Each licensee, individual, or person subject tothis Article shall also make available for interview by the Commissioner theofficers, principals, persons with control, qualified individuals, mortgageloan originators, employees, independent contractors, agents, and customers ofthe licensee, individual, or person concerning their business.
(d) Each licensee,individual, or person subject to this Article shall make or compile suchreports or prepare other information as may be directed or requested by theCommissioner in order to carry out the purposes of this section, including:
(1) Accountingcompilations;
(2) Information listsand data concerning loan transactions in a format prescribed by theCommissioner;
(3) Periodic reports,including:
a. Annual ReportQuestionnaire,
b. Servicer ActivityReport,
c. Servicer Schedule ofthe Ranges of Costs and Fees,
d. Lender/ServicerAudited Statements of Financial Condition,
e. Broker CertifiedStatements of Financial Condition, and
f. Quarterly LoanOrigination Reports.
(4) Any otherinformation deemed necessary to carry out the purposes of this section.
(e) In making anyexamination or investigation authorized by this Article, the Commissioner maycontrol access to any documents and records of the licensee or person underexamination or investigation. The Commissioner may take possession of thedocuments and records or place a person in exclusive charge of the documentsand records in the place where they are usually kept. During the period ofcontrol, no individual or person shall remove or attempt to remove any of thedocuments and records except pursuant to a court order or with the consent ofthe Commissioner. Unless the Commissioner has reasonable grounds to believe thedocuments or records of the licensee have been or are at risk of being alteredor destroyed for purposes of concealing a violation of this Article, thelicensee or owner of the documents and records shall have access to thedocuments or records as necessary to conduct its ordinary business.
(f) In order to carryout the purposes of this section, the Commissioner may:
(1) Retain attorneys,accountants, or other professionals and specialists as examiners, auditors, orinvestigators to conduct or assist in the conduct of examinations orinvestigations;
(2) Enter intoagreements or relationships with other government officials or regulatoryassociations in order to improve efficiencies and reduce regulatory burden bysharing resources, standardized or uniform methods or procedures, documents,records, information, or evidence obtained under this section;
(3) Use, hire, contract,or employ public or privately available analytical systems, methods, orsoftware to examine or investigate the licensee, individual, or person subjectto this Article;
(4) Accept and rely onexamination or investigation reports made by other government officials, withinor without this State; or
(5) Accept audit reportsmade by an independent certified public accountant for the licensee,individual, or person in the course of that part of the examination coveringthe same general subject matter as the audit and may incorporate the auditreport in the report of the examination, report of investigation, or otherwriting of the Commissioner.
(g) In addition to theauthority granted by G.S. 53‑244.113 and G.S. 53‑244.115, theCommissioner is authorized to take action, including summary suspension of thelicense, if the licensee fails, within 20 days or a lesser time if specificallyrequested for good cause, to:
(1) Respond to inquiriesfrom the Commissioner or the Commissioner's designee regarding any complaintsfiled against the licensee that allege or appear to involve violation of thisArticle or any law or rule affecting the mortgage lending business;
(2) Respond to andcooperate fully with notices from the Commissioner or the Commissioner'sdesignee relating to the scheduling and conducting of an examination orinvestigation under this Article; or
(3) Consent to acriminal history record check. The refusal shall constitute grounds for theCommissioner to deny licensure to the applicant as well as to any entity:
a. By whom or by whichthe applicant is employed,
b. Over which theapplicant has control, or
c. As to which theapplicant is the current or proposed qualifying individual or a current orproposed branch manager.
(h) The authority ofthis section shall remain in effect, whether a licensee, individual, or personsubject to this Article acts or claims to act under any licensing law of theState, or claims to act without such authority. (2009‑374, s. 2.)
§ 53‑244.115. Investigation and examination authority.
(a) For purposes ofinitial licensing, license renewal, suspension, conditioning, revocation, ortermination, or general or specific inquiry, investigation, or examination todetermine compliance with this Article, the Commissioner may, at the expense ofthe applicant or licensee, access, receive, and use any books, accounts,records, files, documents, information, or evidence, including:
(1) Criminal, civil, andadministrative history information, including nonconviction data;
(2) Personal history andexperience information, including independent credit reports obtained from aconsumer reporting agency described in section 603(p) of the Fair CreditReporting Act; and
(3) Any other documents,information, or evidence the Commissioner deems relevant to the inquiry,investigation, or examination regardless of the location, possession, control,or custody of the documents, information, or evidence.
(b) For purposes ofinvestigating violations or complaints arising under this Article, or for thepurposes of examination, the Commissioner may review, investigate, or examineany licensee, individual, or person subject to this Article as often asnecessary in order to carry out the purposes of this Article. The Commissionermay interview the officer, principals, person with control, qualifiedindividual, mortgage loan originators, employees, independent contractors,agents, and customers of the licensee, individual, or person concerning theirbusiness. The Commissioner may direct, subpoena, or order the attendance of andexamine under oath all persons whose testimony may be required about the loansor the business or subject matter of any examination or investigation and maydirect, subpoena, or order the person to produce books, accounts, records,files, and any other documents the Commissioner deems relevant to the inquiry.The reasonable cost of the investigation or examination shall be chargedagainst the licensee, individual, or person subject to this Article.
(c) Each licensee,individual, or person subject to this Article shall make available to theCommissioner upon request the books and records relating to the operations ofthe licensee, individual, or person. No licensee, individual, or person subjectto investigation or examination under this section may knowingly withhold,abstract, remove, mutilate, destroy, or secrete any books, records, computerrecords, or other information. Each licensee, individual, or person subject tothis Article shall also make available for interview by the Commissioner theofficers, principals, persons with control, qualified individuals, mortgageloan originators, employees, independent contractors, agents, and customers ofthe licensee, individual, or person concerning their business.
(d) Each licensee,individual, or person subject to this Article shall make or compile suchreports or prepare other information as may be directed or requested by theCommissioner in order to carry out the purposes of this section, including:
(1) Accountingcompilations;
(2) Information listsand data concerning loan transactions in a format prescribed by theCommissioner;
(3) Periodic reports,including:
a. Annual ReportQuestionnaire,
b. Servicer ActivityReport,
c. Servicer Schedule ofthe Ranges of Costs and Fees,
d. Lender/ServicerAudited Statements of Financial Condition,
e. Broker CertifiedStatements of Financial Condition, and
f. Quarterly LoanOrigination Reports.
(4) Any otherinformation deemed necessary to carry out the purposes of this section.
(e) In making anyexamination or investigation authorized by this Article, the Commissioner maycontrol access to any documents and records of the licensee or person underexamination or investigation. The Commissioner may take possession of thedocuments and records or place a person in exclusive charge of the documentsand records in the place where they are usually kept. During the period ofcontrol, no individual or person shall remove or attempt to remove any of thedocuments and records except pursuant to a court order or with the consent ofthe Commissioner. Unless the Commissioner has reasonable grounds to believe thedocuments or records of the licensee have been or are at risk of being alteredor destroyed for purposes of concealing a violation of this Article, thelicensee or owner of the documents and records shall have access to thedocuments or records as necessary to conduct its ordinary business.
(f) In order to carryout the purposes of this section, the Commissioner may:
(1) Retain attorneys,accountants, or other professionals and specialists as examiners, auditors, orinvestigators to conduct or assist in the conduct of examinations orinvestigations;
(2) Enter intoagreements or relationships with other government officials or regulatoryassociations in order to improve efficiencies and reduce regulatory burden bysharing resources, standardized or uniform methods or procedures, documents,records, information, or evidence obtained under this section;
(3) Use, hire, contract,or employ public or privately available analytical systems, methods, orsoftware to examine or investigate the licensee, individual, or person subjectto this Article;
(4) Accept and rely onexamination or investigation reports made by other government officials, withinor without this State; or
(5) Accept audit reportsmade by an independent certified public accountant for the licensee,individual, or person in the course of that part of the examination coveringthe same general subject matter as the audit and may incorporate the auditreport in the report of the examination, report of investigation, or otherwriting of the Commissioner.
(g) In addition to theauthority granted by G.S. 53‑244.113 and G.S. 53‑244.115, theCommissioner is authorized to take action, including summary suspension of thelicense, if the licensee fails, within 20 days or a lesser time if specificallyrequested for good cause, to:
(1) Respond to inquiriesfrom the Commissioner or the Commissioner's designee regarding any complaintsfiled against the licensee that allege or appear to involve violation of thisArticle or any law or rule affecting the mortgage lending business;
(2) Respond to andcooperate fully with notices from the Commissioner or the Commissioner'sdesignee relating to the scheduling and conducting of an examination orinvestigation under this Article; or
(3) Consent to acriminal history record check. The refusal shall constitute grounds for theCommissioner to deny licensure to the applicant as well as to any entity:
a. By whom or by whichthe applicant is employed,
b. Over which theapplicant has control, or
c. As to which theapplicant is the current or proposed qualifying individual or a current orproposed branch manager.
(h) The authority ofthis section shall remain in effect, whether a licensee, individual, or personsubject to this Article acts or claims to act under any licensing law of theState, or claims to act without such authority. (2009‑374, s. 2.)
