§ 19-14-23 Examinations andinvestigations. – (a) For the purpose of discovering violations of this title or securinginformation lawfully required, the director or the director's designee(s) mayat any time investigate the loans and business and examine the books, accounts,records and files used therein, of every licensee and person who shall beengaged in any activity that requires a license under this title, whether theperson shall act or claim to act as principal or agent, or under or without theauthority of this title. For that purpose the director or the director'sdesignee(s) shall have free access to the offices and places of business,books, accounts, paper, records, files, and safes, of all such persons. Thedirector or the director's designee(s) shall have authority to require theattendance of and to examine under oath any person whose testimony may berequired relative to the loans or the business or to the subject matter of anyexamination, investigation, or hearing.
(b) The director or the director's designee shall make anexamination of the affairs, business, office, and records of each licensee andbranch location at least once every eighteen (18) months. The director or thedirector's designee may accept in lieu of an examination of the business of alicensed mortgage loan originator, the examination by the director or thedirector's designee of the licensed lender(s) or licensed loan broker whoemploy the licensed mortgage loan originator and/or who employed the licensedmortgage loan originator during the period under examination. The total cost ofan examination made pursuant to this section shall be paid by the licensee orperson being examined, and shall include the following expenses:
(1) One hundred fifty percent (150%) of the total salariesand benefits plus one hundred percent (100%) for the travel and transportationexpenses for the examining personnel engaged in the examinations. The cost ofan examination of a mortgage loan originator licensee shall be limited totwenty-five percent (25%) of the total salary and benefits for the personnelengaged in an examination specific to a mortgage loan originator. The feesshall be paid to the director to and for the use of the state. The examinationfees shall be in addition to any taxes and fees otherwise payable to the state;
(2) All reasonable technology costs related to theexamination process. Technology costs shall include the actual cost of softwareand hardware utilized in the examination process and the cost of trainingexamination personnel in the proper use of the software or hardware; and
(3) All necessary and reasonable education and training costsincurred by the state to maintain the proficiency and competence of theexamination personnel. All such costs shall be incurred in accordance withappropriate state of Rhode Island regulations, guidelines and procedures.
(c) All expenses incurred pursuant to subsections (b)(2) and(b)(3) of this section shall be allocated equally to each licensee, other thanlicensed mortgage loan originators, no more frequently than annually and shallnot exceed an annual average assessment of fifty dollars ($50.00) per companyfor any given three (3) calendar year period. All revenues collected pursuantto this section shall be deposited as general revenues. That assessment shallbe in addition to any taxes and fees otherwise payable to the state.
(d) The provisions of § 19-4-3 shall apply to records ofexaminations or investigations of licensees; however, the director or thedirector's designee is authorized to make public the number of valid consumercomplaints as determined by the director or the director's designee filedagainst the licensee for a twelve (12) month period immediately preceding therequest for the information.
(e) If the director or his or her designee has reason tobelieve that any person required to be licensed under this chapter isconducting a business without having first obtained a license under thischapter, or who after the denial, suspension, or revocation of a license isconducting that business, the director or his or her designee may issue anorder to that person commanding him or her to cease and desist from conductingthat business. The order shall provide an opportunity to request a hearing tobe held not sooner than three (3) days after issuance of that order to showcause why the order should not become final. Any order issued pursuant to thissection shall become final if no request for a hearing is received by thedirector or his or her designee within thirty (30) days of the issuance of theorder. The order may be served on any person by mailing a copy of the order,certified mail, return receipt requested, and first class mail to that personat any address at which that person has done business or at which that personlives. Any hearing held pursuant to this section shall be governed inaccordance with chapter 35 of title 42. If that person fails to comply with anorder of the director or his or her designee after being afforded anopportunity for a hearing, the superior court for Providence County hasjurisdiction upon complaint of the department to restrain and enjoin thatperson from violating this chapter.
(f) The director may impose an administrative assessment, aswell as the penalties provided for under § 19-14-26, against any personnamed in an order issued under subsection (e) or, in accordance with the rulesand regulations promulgated pursuant to § 19-14-30, against any person whoviolates or participates in the violation of any of the applicable provisionsof this title, or any regulation promulgated pursuant to any provisions of thistitle. The amount of the administrative assessment may not exceed one thousanddollars ($1,000) for each violation of this chapter or each act or omissionthat constitutes a basis for issuing the order. Any person aggrieved by anadministrative assessment shall have the opportunity to request a hearing to beheld in accordance with chapter 35 of title 42 within thirty (30) days of theimposition of such administrative assessment.
§ 19-14-23 Examinations andinvestigations. – (a) For the purpose of discovering violations of this title or securinginformation lawfully required, the director or the director's designee(s) mayat any time investigate the loans and business and examine the books, accounts,records and files used therein, of every licensee and person who shall beengaged in any activity that requires a license under this title, whether theperson shall act or claim to act as principal or agent, or under or without theauthority of this title. For that purpose the director or the director'sdesignee(s) shall have free access to the offices and places of business,books, accounts, paper, records, files, and safes, of all such persons. Thedirector or the director's designee(s) shall have authority to require theattendance of and to examine under oath any person whose testimony may berequired relative to the loans or the business or to the subject matter of anyexamination, investigation, or hearing.
(b) The director or the director's designee shall make anexamination of the affairs, business, office, and records of each licensee andbranch location at least once every eighteen (18) months. The director or thedirector's designee may accept in lieu of an examination of the business of alicensed mortgage loan originator, the examination by the director or thedirector's designee of the licensed lender(s) or licensed loan broker whoemploy the licensed mortgage loan originator and/or who employed the licensedmortgage loan originator during the period under examination. The total cost ofan examination made pursuant to this section shall be paid by the licensee orperson being examined, and shall include the following expenses:
(1) One hundred fifty percent (150%) of the total salariesand benefits plus one hundred percent (100%) for the travel and transportationexpenses for the examining personnel engaged in the examinations. The cost ofan examination of a mortgage loan originator licensee shall be limited totwenty-five percent (25%) of the total salary and benefits for the personnelengaged in an examination specific to a mortgage loan originator. The feesshall be paid to the director to and for the use of the state. The examinationfees shall be in addition to any taxes and fees otherwise payable to the state;
(2) All reasonable technology costs related to theexamination process. Technology costs shall include the actual cost of softwareand hardware utilized in the examination process and the cost of trainingexamination personnel in the proper use of the software or hardware; and
(3) All necessary and reasonable education and training costsincurred by the state to maintain the proficiency and competence of theexamination personnel. All such costs shall be incurred in accordance withappropriate state of Rhode Island regulations, guidelines and procedures.
(c) All expenses incurred pursuant to subsections (b)(2) and(b)(3) of this section shall be allocated equally to each licensee, other thanlicensed mortgage loan originators, no more frequently than annually and shallnot exceed an annual average assessment of fifty dollars ($50.00) per companyfor any given three (3) calendar year period. All revenues collected pursuantto this section shall be deposited as general revenues. That assessment shallbe in addition to any taxes and fees otherwise payable to the state.
(d) The provisions of § 19-4-3 shall apply to records ofexaminations or investigations of licensees; however, the director or thedirector's designee is authorized to make public the number of valid consumercomplaints as determined by the director or the director's designee filedagainst the licensee for a twelve (12) month period immediately preceding therequest for the information.
(e) If the director or his or her designee has reason tobelieve that any person required to be licensed under this chapter isconducting a business without having first obtained a license under thischapter, or who after the denial, suspension, or revocation of a license isconducting that business, the director or his or her designee may issue anorder to that person commanding him or her to cease and desist from conductingthat business. The order shall provide an opportunity to request a hearing tobe held not sooner than three (3) days after issuance of that order to showcause why the order should not become final. Any order issued pursuant to thissection shall become final if no request for a hearing is received by thedirector or his or her designee within thirty (30) days of the issuance of theorder. The order may be served on any person by mailing a copy of the order,certified mail, return receipt requested, and first class mail to that personat any address at which that person has done business or at which that personlives. Any hearing held pursuant to this section shall be governed inaccordance with chapter 35 of title 42. If that person fails to comply with anorder of the director or his or her designee after being afforded anopportunity for a hearing, the superior court for Providence County hasjurisdiction upon complaint of the department to restrain and enjoin thatperson from violating this chapter.
(f) The director may impose an administrative assessment, aswell as the penalties provided for under § 19-14-26, against any personnamed in an order issued under subsection (e) or, in accordance with the rulesand regulations promulgated pursuant to § 19-14-30, against any person whoviolates or participates in the violation of any of the applicable provisionsof this title, or any regulation promulgated pursuant to any provisions of thistitle. The amount of the administrative assessment may not exceed one thousanddollars ($1,000) for each violation of this chapter or each act or omissionthat constitutes a basis for issuing the order. Any person aggrieved by anadministrative assessment shall have the opportunity to request a hearing to beheld in accordance with chapter 35 of title 42 within thirty (30) days of theimposition of such administrative assessment.
§ 19-14-23 Examinations andinvestigations. – (a) For the purpose of discovering violations of this title or securinginformation lawfully required, the director or the director's designee(s) mayat any time investigate the loans and business and examine the books, accounts,records and files used therein, of every licensee and person who shall beengaged in any activity that requires a license under this title, whether theperson shall act or claim to act as principal or agent, or under or without theauthority of this title. For that purpose the director or the director'sdesignee(s) shall have free access to the offices and places of business,books, accounts, paper, records, files, and safes, of all such persons. Thedirector or the director's designee(s) shall have authority to require theattendance of and to examine under oath any person whose testimony may berequired relative to the loans or the business or to the subject matter of anyexamination, investigation, or hearing.
(b) The director or the director's designee shall make anexamination of the affairs, business, office, and records of each licensee andbranch location at least once every eighteen (18) months. The director or thedirector's designee may accept in lieu of an examination of the business of alicensed mortgage loan originator, the examination by the director or thedirector's designee of the licensed lender(s) or licensed loan broker whoemploy the licensed mortgage loan originator and/or who employed the licensedmortgage loan originator during the period under examination. The total cost ofan examination made pursuant to this section shall be paid by the licensee orperson being examined, and shall include the following expenses:
(1) One hundred fifty percent (150%) of the total salariesand benefits plus one hundred percent (100%) for the travel and transportationexpenses for the examining personnel engaged in the examinations. The cost ofan examination of a mortgage loan originator licensee shall be limited totwenty-five percent (25%) of the total salary and benefits for the personnelengaged in an examination specific to a mortgage loan originator. The feesshall be paid to the director to and for the use of the state. The examinationfees shall be in addition to any taxes and fees otherwise payable to the state;
(2) All reasonable technology costs related to theexamination process. Technology costs shall include the actual cost of softwareand hardware utilized in the examination process and the cost of trainingexamination personnel in the proper use of the software or hardware; and
(3) All necessary and reasonable education and training costsincurred by the state to maintain the proficiency and competence of theexamination personnel. All such costs shall be incurred in accordance withappropriate state of Rhode Island regulations, guidelines and procedures.
(c) All expenses incurred pursuant to subsections (b)(2) and(b)(3) of this section shall be allocated equally to each licensee, other thanlicensed mortgage loan originators, no more frequently than annually and shallnot exceed an annual average assessment of fifty dollars ($50.00) per companyfor any given three (3) calendar year period. All revenues collected pursuantto this section shall be deposited as general revenues. That assessment shallbe in addition to any taxes and fees otherwise payable to the state.
(d) The provisions of § 19-4-3 shall apply to records ofexaminations or investigations of licensees; however, the director or thedirector's designee is authorized to make public the number of valid consumercomplaints as determined by the director or the director's designee filedagainst the licensee for a twelve (12) month period immediately preceding therequest for the information.
(e) If the director or his or her designee has reason tobelieve that any person required to be licensed under this chapter isconducting a business without having first obtained a license under thischapter, or who after the denial, suspension, or revocation of a license isconducting that business, the director or his or her designee may issue anorder to that person commanding him or her to cease and desist from conductingthat business. The order shall provide an opportunity to request a hearing tobe held not sooner than three (3) days after issuance of that order to showcause why the order should not become final. Any order issued pursuant to thissection shall become final if no request for a hearing is received by thedirector or his or her designee within thirty (30) days of the issuance of theorder. The order may be served on any person by mailing a copy of the order,certified mail, return receipt requested, and first class mail to that personat any address at which that person has done business or at which that personlives. Any hearing held pursuant to this section shall be governed inaccordance with chapter 35 of title 42. If that person fails to comply with anorder of the director or his or her designee after being afforded anopportunity for a hearing, the superior court for Providence County hasjurisdiction upon complaint of the department to restrain and enjoin thatperson from violating this chapter.
(f) The director may impose an administrative assessment, aswell as the penalties provided for under § 19-14-26, against any personnamed in an order issued under subsection (e) or, in accordance with the rulesand regulations promulgated pursuant to § 19-14-30, against any person whoviolates or participates in the violation of any of the applicable provisionsof this title, or any regulation promulgated pursuant to any provisions of thistitle. The amount of the administrative assessment may not exceed one thousanddollars ($1,000) for each violation of this chapter or each act or omissionthat constitutes a basis for issuing the order. Any person aggrieved by anadministrative assessment shall have the opportunity to request a hearing to beheld in accordance with chapter 35 of title 42 within thirty (30) days of theimposition of such administrative assessment.
