2011 Vermont Code
Title 08 Banking and Insurance
Chapter 85 LOAN SERVICERS
§ 2904 Approval of application and issuance of license

§ 2904. Approval of application and issuance of license

(a) Upon the filing of the application, payment of the required fees, and approval of the bond, the commissioner shall issue and deliver a license to the applicant upon findings by the commissioner as follows:

(1) That the financial responsibility, experience, character, and general fitness of the applicant are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly, and efficiently within the purposes of this chapter. If the applicant is a partnership or association, such findings are required with respect to each partner, member, and control person. If the applicant is a corporation, such findings are required with respect to each officer, director, and control person.

(2) That allowing the applicant to engage in business will promote the convenience and advantage of the community in which the business of the applicant is to be conducted.

(3) That the applicant is licensed to engage in such business in its state of domicile, and is in good standing in its state of domicile with its state regulator or equivalent financial industry regulator, if such state licenses third party loan servicers.

(4) That the applicant, and each officer, director, and control person of the applicant, has never had a third party loan servicer license, lender license, mortgage broker license, mortgage loan originator license, or similar license revoked in any governmental jurisdiction, except that a subsequent formal vacation of such revocation shall not be deemed a revocation.

(5) The applicant, and each officer, director, and control person of the applicant, has not been convicted of or pled guilty or nolo contendere to a felony in a domestic, foreign, or military court:

(A) During the seven-year period preceding the date of the application for licensing and registration, other than a conviction for driving under the influence or a similarly titled offense in this state or in any other jurisdiction;

(B) 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) Provided that any pardon of a conviction shall not be a conviction for purposes of this subsection.

(6) That the applicant has satisfied the surety bond requirement of section 2903 of this title.

(b) If the commissioner does not find as set forth in subsection (a) of this section, the commissioner shall not issue a license. Within 60 days of filing of the completed application, the commissioner shall notify the applicant of the denial, stating the reason or reasons therefor. If after the allowable period, no request for reconsideration under subsection 2905(a) of this title is received from the applicant, the commissioner shall return to the applicant the bond and the sum paid by the applicant as a license fee, retaining the investigation fee to cover the costs of investigating the application.

(c) If the commissioner makes findings as set forth in subsection (a) of this section, he or she shall issue the license within 60 days of filing the completed application. The license shall be in full force and effect until surrendered by the licensee, or revocation, termination, suspension, or refusal to renew by the commissioner. (Added 2009, No. 96 (Adj. Sess.), { 1, eff. Jan. 1, 2011.)