US Laws, Codes, Statutes & Cases

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 31
                        RESIDENTIAL MORTGAGE PRACTICES
    26-3108A.  LICENSE TO DO BUSINESS AS A LOAN ORIGINATOR. (1) The director
shall receive and act on all loan originator license applications.
Applications shall be filed in the manner prescribed by the director, shall
contain such information as the director may reasonably require, shall be
updated as necessary to keep the information current, and shall be accompanied
by an application fee of two hundred dollars ($200). When an application for
licensure is denied or withdrawn, the director shall retain all fees paid by
the applicant.
    (2)  An application for license may be denied if the director finds that:
    (a)  The financial responsibility, character, and fitness of the license
    applicant are not such as to warrant belief that the loan originator will
    operate honestly and fairly within the purposes of this chapter;
    (b)  The applicant has been convicted of any felony or a misdemeanor
    involving any aspect of the financial services business, or a court has
    accepted a finding of guilt on the part of the applicant of any felony or
    a misdemeanor involving any aspect of the financial services business;
    (c)  The applicant has had a license, substantially equivalent to a
    license under this chapter and issued by any state, denied, revoked or
    suspended under the law of such state;
    (d)  The applicant has filed an application for a license which is false
    or misleading with respect to any material fact;
    (e)  The applicant has violated this chapter or any rule or order lawfully
    made pursuant to this chapter;
    (f)  The applicant has violated any state or federal law, rule or
    regulation pertaining to mortgage brokering, mortgage lending, or loan
    origination activities set forth in section 26-3102, Idaho Code; or
    (g)  The applicant has not provided information on the application as
    reasonably required by the director pursuant to subsection (1) of this
    section.
    (3)  The director is empowered to conduct investigations as he may deem
necessary, to enable him to determine the existence of the requirements set
out in subsection (2) of this section.
    (4)  Upon written request, an applicant is entitled to a hearing on the
question of his qualifications for a license if:
    (a)  The director has notified the applicant in writing that his
    application has been denied, or objections filed;
    (b)  The director has not issued a license within sixty (60) days after
    the application for the license was filed. If a hearing is held, the
    applicant and those filing  objections shall reimburse, pro rata, the
    director for his reasonable and necessary expenses incurred as a result of
    the hearing. A request for hearing may not be made more than fifteen (15)
    days after the director has mailed a writing to the applicant notifying
    him that the application has been denied and stating in substance the
    director's finding supporting denial of the application or that objections
    have been filed and the substance thereof.
    (5)  A loan originator may transact business only for a mortgage broker or
mortgage lender licensed in accordance with the provisions of this chapter.
The original license issued by the department to a loan originator must be
provided to and be maintained by the employing mortgage broker or mortgage
lender at the mortgage broker's or lender's main office. A copy of the loan
originator's license must be displayed at the office where that loan
originator principally transacts business.
    (6)  Each license under this section shall remain in full force and effect
unless the licensee does not satisfy the renewal requirements of section
26-3111(4), Idaho Code, or the license is relinquished, suspended or revoked.
    (7)  A loan originator licensee under this chapter shall not engage in
loan origination activities at any location that is not a licensed home or
branch office location of the mortgage broker or mortgage lender he represents
or is acting on behalf of, nor shall he engage in loan origination activities
under any other name than that on the license.
    (8)  The director may suspend action upon a loan originator license
application pending resolution of any criminal charges before any court of
competent jurisdiction against an applicant which could disqualify that
applicant if convicted.
    (9)  The director may suspend action upon a loan originator license
application pending resolution of any civil action or administrative
proceeding against an applicant, in which the civil action or administrative
proceeding involves any aspect of a financial service business and the outcome
of which could disqualify the applicant.
    (10) An applicant under this section shall make complete disclosure of all
information required in the application. An applicant, or an individual acting
on behalf of the applicant, is not liable in any civil action other than a
civil action brought by a governmental agency, related to an alleged untrue
statement made pursuant to this section unless it is shown by clear and
convincing evidence that:
    (a)  The applicant, or an individual acting on behalf of the applicant,
    knew at the time that the statement was made that it was false in any
    material respect; or
    (b)  The applicant, or an individual acting on behalf of the applicant,
    acted in reckless disregard as to the statement's truth or falsity.