Idaho Statutes
pecnv.out

TITLE 26
BANKS AND BANKING
CHAPTER 31
IDAHO RESIDENTIAL MORTGAGE PRACTICES ACT
PART 3.
PROVISIONS APPLICABLE TO MORTGAGE LOAN ORIGINATORS
26-31-306.  issuance of license — license not assignable or transferable — inactive license status. (1) The director shall not issue a mortgage loan originator license under this part unless the director first makes the following findings:
(a)  The applicant has never had a mortgage loan originator license, or other mortgage related license, revoked in any governmental jurisdiction. If such revocation was formally vacated, then it shall not be deemed a revocation for purposes of this section.
(b)  The applicant has not been convicted of, found guilty of or pled guilty or nolo contendere to a felony in a domestic, foreign or military court:
(i)   During the seven (7) year period immediately preceding the date of the application for licensing or registration; 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;
(c)  Any pardon or expungement of a conviction shall not be deemed a conviction for purposes of this section resulting in an automatic denial or revocation of a mortgage loan originator license. The director may consider the underlying crime, facts or circumstances of a pardoned or expunged felony conviction when determining the eligibility of an applicant for licensure under paragraph (d) of this subsection.
(d)  The applicant has demonstrated financial responsibility, character and general fitness sufficient to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this part. The director shall not base a license application denial under this part solely on a license applicant’s credit score or credit report. For purposes of this section, a license applicant is not financially responsible if he has shown a disregard for the management of his personal financial affairs. A determination that an individual has not shown financial responsibility may include, but is not limited to, consideration of the following:
(i)   A current outstanding judgment, except a judgment issued solely as a result of medical expenses;
(ii)  A current outstanding tax lien or other government lien or filing;
(iii) A foreclosure within the past three (3) years; or
(iv)  A pattern of delinquent accounts within the past three (3) years.
(e)  The applicant has successfully completed the prelicensing education requirement pursuant to section 26-31-307, Idaho Code.
(f)  The applicant has passed a written test that meets the test requirement pursuant to section 26-31-308, Idaho Code.
(g)  The applicant has met the mortgage recovery fund requirement pursuant to section 26-31-110, Idaho Code.
(h)  The applicant has provided information on the application as required in section 26-31-305, Idaho Code.
(2)  The director may conduct investigations as he deems necessary to determine the existence of the requirements listed in this section.
(3)  A license issued under this part is not assignable or transferable.
(4)  A mortgage loan originator whose license is placed on inactive status under this part shall not act as a mortgage loan originator in this state until the license is activated.
(5)  The director shall place a mortgage loan originator license on inactive status upon the occurrence of any of the following:
(a)  A mortgage loan originator license application is submitted and approved prior to the filing and approval of a loan originator’s relationship and sponsorship by an employing licensed mortgage broker or mortgage lender or by an exempt entity;
(b)  Receipt of a notice from either the licensed mortgage broker, mortgage lender, registrant, exempt entity or mortgage loan originator that the mortgage loan originator’s sponsored relationship as an employee or independent agent of a licensed mortgage broker, mortgage lender or exempt entity has been terminated; or
(c)  The surrender, expiration, suspension or revocation of the employing licensed mortgage broker’s, mortgage lender’s or exempt entity’s license.
(6)  If a mortgage loan originator license is designated as inactive under this part, then it shall remain in that status unless and until it is surrendered, revoked, suspended, expired or is activated.
(7)  A mortgage loan originator who holds an inactive mortgage loan originator license may renew such inactive license if he or she remains otherwise eligible for renewal pursuant to section 26-31-309, Idaho Code. Such renewal shall not activate the license from an inactive status.
(8)  The director may activate a mortgage loan originator license upon receipt of a filing through the NMLSR indicating that the mortgage loan originator licensee has been employed and sponsored as a mortgage loan originator by a licensed mortgage broker, mortgage lender or by an exempt entity registrant and if such mortgage loan originator meets the conditions for licensing under this part.

History:
[26-31-306, added 2009, ch. 97, sec. 2, p. 300; am. 2013, ch. 64, sec. 16, p. 156.]


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