2005 Connecticut Code - Sec. 36a-511. (Formerly Sec. 36-224b). License required. Registration of originator. Violations.

      Sec. 36a-511. (Formerly Sec. 36-224b). License required. Registration of originator. Violations. (a) No person shall engage in the business of making secondary mortgage loans or act as a secondary mortgage broker unless such person has first obtained the required license under sections 36a-510 to 36a-524, inclusive. A person shall be deemed to be engaged in the business of making secondary mortgage loans if such person advertises, causes to be advertised, solicits, offers to make or makes secondary mortgage loans, either directly or indirectly. A secondary mortgage correspondent lender shall not be deemed to be acting as a secondary mortgage lender if such secondary mortgage correspondent lender makes a loan utilizing its own funds in a situation where another person does not honor such person's commitment to fund the loan.

      (b) No licensee shall employ or retain an originator without first registering such originator under sections 36a-510 to 36a-524, inclusive, provided such registration shall not be required for any originator who is registered by such licensee under sections 36a-485 to 36a-498a, inclusive. No individual may act as an originator without being registered, or act as an originator, as defined in sections 36a-485 and 36a-510, for more than one person. The registration of an originator is not effective during any period when such originator is not associated with a licensee. Both the originator and the licensee shall promptly notify the commissioner, in writing, of the termination of employment or services of an originator.

      (c) Each secondary mortgage loan negotiated, solicited, placed, found or made without a license shall constitute a separate violation for purposes of section 36a-50.

      (P.A. 77-228, S. 2; 77-604, S. 81, 84; P.A. 78-216, S. 2, 7; P.A. 90-184, S. 2; P.A. 94-122, S. 241, 340; P.A. 02-111, S. 16; P.A. 04-69, S. 12.)

      History: P.A. 77-604 rephrased and relocated provision re beneficiaries of estate and deleted provision which had considered persons becoming subsequent holders of mortgage or promissory notes received in connection with secondary mortgage loans in ordinary course of business to be engaged in the secondary mortgage loan business; P.A. 78-216 added "as a lender or a broker" re engaging in secondary mortgage loan business; P.A. 90-184 designated former section as Subsec. (a) and added Subsec. (b) re civil penalty for engaging in the secondary mortgage loan business without a license; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224b transferred to Sec. 36a-511 in 1995; P.A. 02-111 amended Subsec. (a) by changing "secondary mortgage loan business" to "business of making secondary mortgage loans", making technical changes, deleting provision re person not deemed to be engaging in the secondary mortgage loan business and adding provision re secondary mortgage correspondent lender not deemed to be acting as a secondary mortgage lender and added new Subsec. (b) re registration of originator, redesignating existing Subsec. (b) as Subsec. (c); P.A. 04-69 amended Subsec. (b) to substitute "36a-498a" for "36a-498".

      Secondary mortgage loan issued by lender in violation of licensing requirements is not enforceable in foreclosure action. 248 C. 769.

      Trial court properly rendered summary judgment in favor of plaintiffs; because plaintiff's failure to meet licensing requirements of section to issue secondary mortgage loans did not render mortgage agreement a nullity or an illegal act relieving defendants of their obligations, defendant's claim that trial court was misled by plaintiff's affidavit stating plaintiffs were exempt from requirements of section did not create an issue of material fact. 48 CA 80.