In this subtitle the following words have the meanings indicated. “Borrower” has the meaning stated in § 11–501 of this title. “Clerical or support duties” includes the following activities relating to the processing or underwriting of a mortgage loan when performed subsequent to the receipt of a loan application: The receipt, collection, distribution, and analysis of information usual and customary for the processing or underwriting of a mortgage loan; and Communication with a consumer to obtain information necessary for the processing or underwriting of a mortgage loan, to the extent that the communication does not include offering or negotiating mortgage loan rates or terms, or counseling consumers about mortgage loan rates or terms. “Depository institution” has the meaning stated in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c). “Depository institution” includes credit unions. “Federal banking agencies’’ means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation. “Fund” means the Non–Depository Special Fund established under § 2–120 of this article. “Immediate family member” means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, and stepsibling. “Independent contractor” means a person whose compensation is paid without a deduction for federal or State income tax. “Individual” means a natural person. “Individual loan servicer” means an individual who on behalf of a note holder or mortgage loan servicer: Collects or receives payments, including payments of principal, interest, escrow amounts, and other amounts due on existing mortgage loan obligations owed to the note holder or mortgage loan servicer, at a time when the borrower is in default, or in reasonably foreseeable likelihood of default; and Working with the borrower and the note holder or mortgage loan servicer, collects data and makes decisions to modify, either temporarily or permanently, the terms of the mortgage loan obligations described in item (1) of this subsection or to proceed with collection efforts through foreclosure or other processes. “License” means a license issued in any form by the Commissioner under this subtitle to engage in the business of a mortgage loan originator, including as provided for through NMLS. “Licensee” means an individual licensed under this subtitle to engage in the business of a mortgage loan originator. “Loan application” has the meaning stated in § 11–501 of this title. “Mobile home” has the meaning stated in § 11–501 of this title. “Mortgage lender” means a person that is licensed as a mortgage lender under Subtitle 5 of this title. “Mortgage lending business” has the meaning stated in § 11–501 of this title. “Mortgage loan” has the meaning stated in § 11–501 of this title. “Mortgage loan originator” means an individual who for compensation or gain, or in the expectation of compensation or gain: Takes a loan application; or Offers or negotiates terms of a mortgage loan. “Mortgage loan originator” does not include an individual who: Acts solely as a mortgage loan processor or underwriter; Performs only real estate brokerage activities and is licensed in accordance with Title 17 of the Business Occupations and Professions Article, unless the individual is compensated by a mortgage lender, mortgage broker, or other mortgage loan originator or by any agent of a mortgage lender, mortgage broker, or other mortgage loan originator; Is involved solely in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. § 101(53D); or Is a retailer of mobile homes or an employee of the retailer if the retailer or employee, as applicable, does not receive, directly or indirectly, compensation or gain for engaging in activities described in paragraph (1) of this subsection that is in excess of compensation or gain received in a comparable cash transaction. “Mortgage loan processor or underwriter” means an individual who performs clerical or support duties as an employee of, at the direction of, and subject to the supervision and instruction of a person licensed, or exempt from licensing, under Title 5 of this article. “Mortgage loan processor or underwriter” does not include an individual who: Represents to the public, through advertising or other means of communication including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator; or Performs mortgage loan processing or underwriting activities as an independent contractor. “Nontraditional mortgage product” means any mortgage product other than a 30–year fixed rate mortgage loan. “Person” has the meaning stated in § 11–501 of this title. ‘‘Real estate brokerage activity’’ means any activity for which a license is required under Title 17 of the Business Occupations and Professions Article. ‘‘Registered mortgage loan originator’’ means any individual who: Is a mortgage loan originator; Is an employee of: A depository institution; A subsidiary that is: Owned and controlled by a depository institution; and Regulated by a federal banking agency; or An institution regulated by the Farm Credit Administration; and Is registered with, and maintains a unique identifier through, NMLS. “Residential real estate” has the meaning stated in § 11–501 of this title. “Unique identifier” means a number or other identifier assigned by NMLS.

The licensing provisions of this subtitle do not apply to independent contractors. Independent contractors are subject to the licensing provisions of Subtitle 5 of this title unless exempt from licensing under that subtitle. Unless exempted from this subtitle under subsection (d) of this section, an individual may not engage in the business of a mortgage loan originator unless the individual holds a valid license issued under this subtitle. Each licensee shall obtain and maintain a valid unique identifier issued by NMLS: On obtaining an initial or renewal license on or after July 1, 2009; or If the Commissioner has not joined NMLS as of July 1, 2009, on or after the date that the Commissioner joins, as instructed by the Commissioner by notice to the licensee. The following individuals are exempt from this subtitle: A registered mortgage loan originator, when acting for an entity described in § 11–601(w) of this subtitle; An individual who offers or negotiates the terms of a mortgage loan with or on behalf of an immediate family member of the individual; An individual who offers or negotiates the terms of a mortgage loan secured by a dwelling that served as the individual’s residence; A licensed attorney who negotiates the terms of a mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is compensated by a mortgage lender, a mortgage broker, or a mortgage loan originator, or by an agent of a mortgage lender, mortgage broker, or mortgage loan originator; and Subject to subsection (e) of this section, an individual loan servicer. The exemption under subsection (d)(5) of this section is subject to modification by regulations that are adopted by the Commissioner and consistent with any applicable written interpretations of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 by the United States Department of Housing and Urban Development presented through commentaries, guidelines, rules, regulations, or interpretive letters. The Commissioner may adopt regulations to carry out this subtitle.

A license issued under this subtitle authorizes the licensee to act as a mortgage loan originator only when acting within the scope of employment with: A mortgage lender; or A person who is exempt from licensing as a mortgage lender. A licensee may not: Maintain more than one license under this subtitle; or Be employed by more than one mortgage lender or person who is exempt from licensing as a mortgage lender. Each license provided for through NMLS shall include the following information: The name of the licensee; The name of the licensee’s employer; and The unique identifier of the licensee. The unique identifier of the licensee shall constitute the license number for the license. An individual may not act as a mortgage loan originator under a name or for an employer that is different from the name and employer that appear on the license unless the licensee: Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, in advance of a change in the licensee’s name or the licensee’s employer; Pays to the Commissioner a license amendment fee set by the Commissioner for each notice provided under this paragraph; and In the case of a new employer, amends the sponsorship information on NMLS by submitting the amendment, in the form required by the Commissioner, to indicate that the licensee is an employee of the new employer. If a licensee ceases to be employed by a licensed mortgage lender or by a person exempt from licensing as a mortgage lender, the licensee shall notify the Commissioner within 10 business days, and the license shall be placed into nonactive status through NMLS. During the time that a license is in nonactive status, it is a violation of this subtitle for the licensee to engage in any activity for which a license is required under this subtitle. The license shall remain in nonactive status until the licensee: Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained employment with a licensed mortgage lender or with a person exempt from licensing as a mortgage lender; and Has complied with the requirements set forth in paragraph (2) of this subsection. A license may be issued under this subtitle to an individual who is not employed by a licensed mortgage lender or a person exempt from licensing as a mortgage lender provided the license is placed into and remains in nonactive status until the licensee: Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained employment with a licensed mortgage lender or with a person exempt from licensing as a mortgage lender; and Has complied with the requirements set forth in subsection (c)(2) of this section. A license may be issued under this subtitle to an individual who is employed by a mortgage lender, or a person exempt from licensing as a mortgage lender, that has its principal office located outside the State if the mortgage lender or the person exempt from licensing as a mortgage lender maintains a resident agent within the State. This section does not apply to an affiliated insurance producer–mortgage loan originator licensed under § 11–603.1 of this subtitle.

In this section, “affiliated insurance producer–mortgage loan originator” means an individual who: Originates mortgage loans made by: A financial institution that is: Described in § 11–502(b)(1) of this title; and Approved by the Commissioner under subsection (b) of this section; or A mortgage lender that is approved by the Commissioner under subsection (c) of this section; Is a licensed insurance producer in good standing under § 10–103 of the Insurance Article; and Holds an appointment as an insurance producer for an insurer that controls, is controlled by, or is under common control with: A financial institution or a mortgage lender described in item (1) of this subsection; or A mortgage lender that: Is approved by the Commissioner under subsection (d) of this section; Originates loans made by a financial institution or a mortgage lender described in item (1) of this subsection; and Is acting as a mortgage broker, as defined in § 11–501 of this title. The Commissioner shall approve a financial institution described in subsection (a)(1)(i) of this section based on the following criteria: The financial institution is in good standing with its primary state or federal regulator; and The financial institution is in material compliance with applicable state and federal law. The Commissioner shall approve a mortgage lender described in subsection (a)(1)(ii) of this section based on the following criteria: The mortgage lender is in good standing with the Commissioner and any other regulator to which it is subject; and The mortgage lender is in material compliance with applicable state and federal law. The Commissioner shall approve a mortgage lender described in subsection (a)(3)(ii) of this section based on the following criteria: The mortgage lender is in good standing with the Commissioner and any other regulator to which it is subject; and The mortgage lender is in material compliance with applicable state and federal law. Approval by the Commissioner of a financial institution under subsection (b) of this section and a mortgage lender under subsection (c) or (d) of this section shall be in writing. An application for a license under this section shall be in the form approved by the Commissioner. The application shall require the identification of: A financial institution or a mortgage lender described in subsection (a)(1) of this section; If applicable, a mortgage lender described in subsection (a)(3)(ii) of this section; and The insurer with which the applicant holds an appointment. An application for a license under this section shall be sponsored by: A financial institution or a mortgage lender described in subsection (a)(1) of this section that is identified in the application; or If a mortgage lender described in subsection (a)(3)(ii) of this section is identified in the application, the mortgage lender. Notwithstanding §§ 11–602(a) and 11–603 of this subtitle, and subject to the provisions of this section, a license issued under this section authorizes the licensee to act as a mortgage loan originator only on behalf of a sponsor that is: Identified in the licensee’s application; and A mortgage lender; or A person that is exempt from licensing as a mortgage lender. This section may not be construed to authorize sponsorship other than for the purpose described in paragraph (1) of this subsection. An applicant for a license under this section and a licensee under this section shall comply with all other requirements for licensing as a mortgage loan originator under this subtitle. A licensee under this section shall limit the licensee’s activities to originating mortgage loans made by: A financial institution approved by the Commissioner under subsection (b) of this section; or A mortgage lender approved by the Commissioner under subsection (c) of this section. A financial institution or a mortgage lender that sponsors a licensee’s license application shall: Supervise the licensee, including providing direction through written instructions or electronic means and by periodically examining the licensee’s books, records, and other aspects of the licensee’s business; Be held jointly and severally liable with the licensee for claims arising out of the licensee’s mortgage loan origination activities; and Meet, or cause the licensee to meet, the surety bond requirements under § 11–619(c) of this subtitle. Except as provided in subsection (l) of this section, a licensee under this section may not: Aid or assist a borrower to obtain a mortgage loan from: A financial institution other than a financial institution identified in the licensee’s license application; or A mortgage lender other than a mortgage lender identified in the licensee’s application; Except for compensation based on the principal balance of a mortgage loan, be compensated by any person for mortgage loan origination activities on a basis that depends on the terms of the mortgage loan, including interest rate or fees; Receive a finder’s fee, as defined in § 12–801 of the Commercial Law Article; Handle borrower or other third party funds in connection with the origination or closing of a mortgage loan; Refer a borrower to any other licensee under Subtitle 5 of this title; or Make or service a mortgage loan. A licensee under this section may forward a check to a financial institution or a mortgage lender identified in the licensee’s license application if the check is: Made payable to the financial institution or the mortgage lender; From an applicant for a mortgage loan; and In connection with an application for a mortgage loan to cover costs for: An appraisal; A credit report; or Processing the application. An individual may not act as an affiliated insurance producer–mortgage loan originator unless the licensee: Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, in advance of a change in the licensee’s name or the licensee’s sponsor; Pays to the Commissioner a license amendment fee set by the Commissioner for each notice provided under item (i) of this paragraph; and In the case of a new sponsor, amends the sponsorship information on NMLS by submitting the amendment in the form required by the Commissioner to indicate that the licensee is sponsored by the new sponsor. If a licensee ceases to be sponsored by any financial institution approved by the Commissioner under subsection (b) of this section or any mortgage lender approved by the Commissioner under subsection (c) or (d) of this section, the licensee shall notify the Commissioner within 10 business days, and the license shall be placed into nonactive status through NMLS. During the time that a license is in nonactive status, it is a violation of this subtitle for the licensee to engage in any activity for which a license is required under this subtitle. The license shall remain in nonactive status until the licensee: Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained sponsorship from a financial institution that is approved by the Commissioner under subsection (b) of this section or a mortgage lender that is approved by the Commissioner under subsection (c) or (d) of this section; and Has complied with the requirements set forth in paragraph (1) of this subsection. The Commissioner may issue a license under this subtitle to an individual who is not sponsored by a financial institution approved by the Commissioner under subsection (b) of this section or a mortgage lender approved by the Commissioner under subsection (c) or (d) of this section, provided that the license is placed into and remains in nonactive status until the licensee: Notifies the Commissioner, in the form and in accordance with the process that the Commissioner requires, that the licensee has obtained sponsorship from: A financial institution approved by the Commissioner under subsection (b) of this section; or A mortgage lender approved by the Commissioner under subsection (c) or (d) of this section; and Has complied with the requirements set forth in subsection (m)(1) of this section.

To apply for a license, an applicant shall: Complete, sign, and submit to the Commissioner an application made under oath in the form, and in accordance with the process, that the Commissioner requires; and Provide all information as requested by the Commissioner. The applicant shall comply with all conditions and provisions of the application for a license. With each application, the applicant shall pay to the Commissioner: A nonrefundable investigation fee set by the Commissioner; and A nonrefundable license fee set by the Commissioner. In addition to the license fee required under subsection (b)(2) of this section, an applicant for an initial license shall pay to the Nationwide Multistate Licensing System any fees that the Nationwide Multistate Licensing System imposes in connection with the application. In connection with an initial application for a license under this section and at any other time the Commissioner requests, an applicant or licensee shall provide to the Nationwide Multistate Licensing System information concerning the applicant’s identity, including: Fingerprints for submission to the Federal Bureau of Investigation, and any other governmental agency or entity authorized to receive this information for a state, national, or international criminal history background check; and Personal history and experience in a form prescribed by the Nationwide Multistate Licensing System, including the submission of authorization for the Nationwide Multistate Licensing System and the Commissioner to obtain: An independent credit report from a consumer reporting agency described in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681a(p); and Information related to any administrative, civil, or criminal findings by any governmental jurisdiction. To implement this subtitle, the Commissioner may use the Nationwide Multistate Licensing System as a channeling agent to request information from and distribute information to the Department of Justice, any other governmental agency with subject matter jurisdiction, and any other state licensing entity that has loan originators registered with the Nationwide Multistate Licensing System. An applicant or licensee who is required to provide fingerprints under subsection (d) of this section shall pay any processing or other fees required by the Federal Bureau of Investigation and the Nationwide Multistate Licensing System. The Commissioner may request from the Federal Bureau of Investigation or the Nationwide Multistate Licensing System, as applicable, for each applicant or licensee who is required to provide fingerprints under subsection (d) of this section: The state, national, or international criminal history records of the applicant or licensee; and A printed statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge; An update of the initial criminal history records check or criminal history background check of the applicant or licensee; and A revised statement listing any conviction or other disposition of, and any plea of guilty or nolo contendere to, any criminal charge occurring after the date of the initial criminal history records check or criminal history background check; and An acknowledged receipt of the application for a criminal history records check or criminal history background check of the applicant or licensee.

The Commissioner may not issue a mortgage loan originator license unless the Commissioner makes, at a minimum, the following findings: The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction; The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court: During the 7–year period immediately preceding the date of the application for licensing; or At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering; 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; The applicant has completed the prelicensing education requirement under § 11–606 of this subtitle and any prelicensing education requirements established by the Commissioner by regulation; The applicant has passed a test that meets the requirements established under § 11–606.1 of this subtitle and any prelicensing testing requirements established by the Commissioner by regulation; and The applicant has met the surety bond requirement under § 11–619 of this subtitle. A conviction for which a pardon has been granted is not a conviction for purposes of subsection (a)(2) of this section. A determination that an individual does not meet the requirements for financial responsibility under subsection (a)(3) of this section may not be based solely on: Debts arising from medical expenses, including judgments; Except for delinquent child support payments, debts, including judgments, arising from divorce proceedings or divorce settlements; Foreclosures on the applicant’s principal residence; The applicant’s credit score as reported by any consumer reporting agency, as defined in 15 U.S.C. § 1681a; or The applicant’s involvement in a bankruptcy proceeding under Title 11 of the United States Code.

To qualify for an initial license, an applicant shall complete at least 20 hours of prelicensing education that shall include: 3 hours of instruction on federal law and regulations relating to mortgage origination; 3 hours of instruction on ethics, including instruction on fraud, consumer protection, and fair lending issues; and 2 hours of training related to lending standards and loan terms for nontraditional mortgage products. All prelicensing education courses shall be reviewed and approved by the Nationwide Multistate Licensing System. Review and approval of a prelicensing education course shall include review and approval of the course provider by the Nationwide Multistate Licensing System. Prelicensing education may be offered in a classroom, online, or by any other means approved by the Nationwide Multistate Licensing System. An applicant’s successful completion in another state of the prelicensing education requirements approved by the Nationwide Multistate Licensing System, except prelicensing education requirements specific to that other state, shall be accepted by the Commissioner as credit toward completion of prelicensing education requirements in this State. This section does not preclude any prelicensing education course, as approved by the Nationwide Multistate Licensing System, that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.

To qualify for an initial license, an applicant shall pass a qualified written test developed by the Nationwide Multistate Licensing System and administered by a test provider approved by the Nationwide Multistate Licensing System. A written test may not be treated as a qualified written test for purposes of subsection (a) of this section unless the test adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including: Ethics; Federal law and regulations relating to mortgage origination; State law and regulations relating to mortgage origination; and Federal and State law and regulations relating to fraud, consumer protection, the nontraditional mortgage product marketplace, and fair lending issues. To pass a qualified written test, an applicant must receive a test score of at least 75 percent. An applicant may take a test three times, provided that each subsequent test occurs at least 30 days after the preceding test. After failing three tests, an applicant shall wait at least 6 months before taking the test again. A licensee who fails to renew and maintain a valid license for a period of 5 years or longer shall retake the test and achieve a passing grade as set forth in subsection (c) of this section before obtaining a new license. Calculation of the time period during which an individual is unlicensed under paragraph (1) of this subsection shall exclude any time during which the individual is a registered mortgage loan originator. This section does not prohibit a test provider approved by the Nationwide Multistate Licensing System from providing a test at the location of the employer of the applicant or any subsidiary or affiliate of the employer of the applicant, or any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.

When an applicant for a license files the application and pays the fees required by § 11–604 of this subtitle, the Commissioner shall conduct an investigation to determine if the applicant meets the requirements of § 11–605 of this subtitle. The Commissioner shall issue a license to an applicant who meets the requirements of § 11–605 of this subtitle. If the Commissioner notifies an applicant that the application is incomplete: The Commissioner’s notice shall itemize the steps which the applicant must take to complete the application; and The application may not be approved until after the applicant supplies or completes all items and steps identified in the Commissioner’s notice. The Commissioner may deny an application: If the applicant fails to qualify for a license under this subtitle; or For any reason that a license may be revoked or suspended under this subtitle or a mortgage lender license may be suspended or revoked under § 11–517 of this title. The Commissioner shall approve or deny an application within 60 days after the Commissioner receives a completed application.

If the Commissioner denies an application, the Commissioner: Within 10 days, shall notify the applicant, in writing, of the denial; and Shall keep the license fee and the investigation fee. Within 30 days after the Commissioner denies an application, the Commissioner shall: Issue a written decision containing the specific factual findings and conclusions of law on which the denial was based; Send a copy of the written decision by certified mail to the applicant; and Advise the applicant by certified mail of the applicant’s right to a hearing to be held in accordance with the Administrative Procedure Act. An applicant who seeks a hearing on an application denial shall file with the Commissioner’s office a written request for a hearing within 45 days after receipt of the Commissioner’s written decision and notice of the applicant’s right to a hearing.

Subject to any regulations the Commissioner adopts in connection with the transition to NMLS, an initial license term shall: Begin on the first day the license is issued; and Expire on December 31 of the year: In which the license is issued, if the license is issued before November 1; or Succeeding the year in which the license is issued, if the license is issued on or after November 1. On or after November 1 of the year in which the license expires, the license may be renewed for an additional 1–year term, if the licensee: Subject to subsections (d) and (e) of this section, meets the minimum standards for the issuance of a license and otherwise is entitled to be licensed; Pays to the Commissioner a renewal fee set by the Commissioner; and Submits to the Commissioner: A renewal application on the form that the Commissioner requires; and Satisfactory evidence of compliance with any continuing education requirements under this subtitle or set by regulations adopted by the Commissioner. In addition to the license renewal fee required under subsection (b)(2) of this section, an applicant for a license renewal shall pay to NMLS any fees that NMLS imposes in connection with the renewal application. Notwithstanding anything to the contrary in this section or § 11–605 of this subtitle, an applicant for renewal of a license who is duly licensed under this subtitle on July 1, 2009: May comply with the following requirements for renewal of the license on or before December 31, 2010: The fingerprinting and criminal history report requirement under § 11–604 of this subtitle; The surety bond coverage requirement under § 11–619 of this subtitle; and The prelicensing testing requirement under § 11–606.1 of this subtitle; and Is deemed to have satisfied the prelicensing educational course requirement under § 11–606 of this subtitle if the applicant completed 20 hours of continuing education courses approved by the Commissioner within 5 years prior to the expiration date of the applicant’s current license. A licensee may surrender a license through NMLS in accordance with the process that the Commissioner requires. If a license is surrendered voluntarily or is suspended or revoked, the Commissioner may not refund any part of the license fee regardless of the time remaining in the license term.

For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Office of Financial Regulation for the purpose of creating necessary positions to carry out this subtitle.

Before applying for renewal of a license, a licensee shall complete at least 8 hours of continuing education, which shall include: 3 hours of instruction on federal law and regulations relating to mortgage origination; 2 hours of instruction on ethics, including instruction on fraud, consumer protection, and fair lending issues; and 2 hours of training related to lending standards for the nontraditional mortgage product marketplace. All continuing education courses shall be reviewed and approved by the Nationwide Multistate Licensing System. Review and approval of a continuing education course shall include review and approval of the course provider by the Nationwide Multistate Licensing System. Continuing education may be offered in a classroom, online, or by any other means approved by the Nationwide Multistate Licensing System. A licensee: Shall receive credit for a continuing education course only in the year in which the course is taken; and May not take the same continuing education course to meet the annual requirement for continuing education. A licensee who teaches an approved continuing education course may receive credit for the licensee’s own annual continuing education requirement at the rate of 2 hours of credit for every 1 hour taught. A licensee’s successful completion in another state of the continuing education requirements approved by the Nationwide Multistate Licensing System, except continuing education requirements specific to that other state, shall be accepted by the Commissioner as credit towards completion of continuing education requirements in this State. This section does not preclude any continuing education course, as approved by the Nationwide Multistate Licensing System, that is provided by the employer of the mortgage loan originator or an entity that is affiliated with the mortgage loan originator by an agency contract, or any subsidiary or affiliate of the employer or entity. The Commissioner may adopt regulations to implement this section.

The Commissioner shall set by regulation the fees provided for in this subtitle. The fees established by the Commissioner under this section shall be reasonable and set in a manner that will produce funds sufficient to cover the actual direct and indirect costs of regulating licensees in accordance with the provisions of this subtitle. The Commissioner shall publish the fee schedule set by the Commissioner. All revenue received for the licensing and assessment of persons under this subtitle and any other fee or revenue the Commissioner receives under this subtitle shall be: Credited to the Fund; and Used in accordance with § 2–120(d) of this article. Subject to § 2–120(h) of this article, the Commissioner may impose an annual assessment on any licensee under this subtitle.

In this section the following words have the meanings indicated. “Active service member” has the meaning stated in § 9–901 of the State Government Article. “Eligible spouse” means the spouse of an active service member or eligible veteran. “Eligible spouse” includes a surviving spouse of: An eligible veteran; or An active service member who died before the date on which the license application, renewal, or change of status is submitted. “Eligible veteran” means a veteran who was discharged from active duty before the date on which the license application, renewal, or change of status is submitted. To expedite the renewal or change of status of a license for an active service member, eligible veteran, or eligible spouse, the Commissioner may waive or suspend any licensing requirements to the extent that the waiver or suspension does not result in the failure to meet the minimum licensing standards set forth in 12 U.S.C. Chapter 51 and the regulations adopted under it. To expedite the issuance of a license to an active service member, eligible veteran, or eligible spouse who holds a valid mortgage loan originator license in another state, the Commissioner may waive or suspend any licensing requirements to the extent that the waiver or suspension does not result in the failure to meet the minimum licensing standards set forth in 12 U.S.C. Chapter 51 and the regulations adopted under it. An individual authorized to practice in the State under § 10–14B–03 of the State Government Article may not be required to apply for expedited licensure under this section to practice in the State. The Commissioner shall publish prominently on the Commissioner’s website, or have published on a third–party website used for licensing mortgage loan originators in the State, the expedited processes for the issuance, renewal, or change of status of a license under this section. The Commissioner may adopt regulations to carry out this section.

Any person aggrieved by the conduct of a licensee under this subtitle in connection with a mortgage loan may file a written complaint with the Commissioner who shall investigate the complaint. The Commissioner may make any other investigation of a licensee if the Commissioner has reasonable cause to believe that the licensee has violated any provision of this subtitle, of any regulation adopted under this subtitle, or of any other law regulating mortgage lending or mortgage origination in the State. In addition to the requirements of this section, an affiliated insurance producer–mortgage loan originator licensed under § 11–603.1 of this subtitle shall be subject to the provisions of §§ 11–513 and 11–515 of this title: To the extent the Commissioner determines is necessary to enable the Commissioner to investigate and examine the mortgage loan origination activities of the affiliated insurance producer–mortgage loan originator; and As specified in regulations adopted by the Commissioner. A licensee shall pay to the Commissioner a per–day fee set by the Commissioner for each of the Commissioner’s employees engaged in any investigation conducted under this section that the Commissioner reasonably considers necessary. In connection with an investigation made under this section, the Commissioner may: Examine the books and records of a licensee or of any other person that the Commissioner believes has violated a provision of this subtitle, any rule or regulation adopted under this subtitle, or any other law regulating mortgage lending or mortgage origination in the State; Subpoena documents or other evidence; and Summon and examine under oath any person whose testimony the Commissioner requires. If a person fails to comply with a subpoena or summons of the Commissioner under this subtitle or to testify concerning any matter about which the person may be interrogated under this subtitle, the Commissioner may file a petition for enforcement with the circuit court for a county. On petition by the Commissioner, the court may order the person to attend and testify or produce evidence.

If the Commissioner finds that the conduct of any other business conceals a violation or evasion of this subtitle or any rule or regulation adopted under this subtitle, or any law regulating mortgage lending or mortgage origination in the State, the Commissioner may issue a written order to a licensee to stop doing business: At any place in which the other business is conducted or solicited; or In association or conjunction with the other business. A licensee who violates an order of the Commissioner issued under this section shall be subject to the penalties provided by § 11-615 of this subtitle. The Commissioner may file a petition in the circuit court for a county seeking enforcement of an order under this section.

Subject to the hearing provisions of § 11–616 of this subtitle, and except as provided in subsection (f) of this section, the Commissioner may suspend or revoke the license of any licensee if the licensee: Makes any material misstatement in an application for a license; Is convicted under the laws of the United States or of any state of a felony or a misdemeanor that is directly related to the fitness and qualification of the individual to act as a mortgage loan originator; In connection with any mortgage loan or loan application transaction: Commits any fraud; Engages in any illegal or dishonest activities; or Misrepresents or fails to disclose any material facts to a person entitled to that information; Violates any provision of this subtitle, any regulation adopted under this subtitle, or any other law regulating mortgage lending or mortgage origination in the State; or Otherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been or will not be conducted honestly. In determining whether a license shall be suspended or revoked for a reason described in subsection (a)(2) of this section, the Commissioner shall consider: The nature of the crime; The relationship of the crime to the activities authorized by the license; With respect to a felony, the relevance of the conviction to the fitness and qualification of the licensee to engage in the mortgage lending or mortgage origination business; The length of time since the conviction; and The behavior and activities of the licensee since the conviction. The Commissioner may enforce the provisions of this subtitle, regulations adopted under this subtitle, and the applicable provisions of Title 12 of the Commercial Law Article by: Issuing an order: To cease and desist from the violation and any further similar violations; and Requiring the violator to take affirmative action to correct the violation, including the restitution of money or property to any person aggrieved by the violation; and Imposing a civil penalty not exceeding $10,000 for each violation. If a violator fails to comply with an order issued under paragraph (1)(i) of this subsection, the Commissioner may impose a civil penalty not exceeding $25,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct. The Commissioner may file a petition in the circuit court for a county seeking enforcement of an order issued under this section. In determining the amount of a civil penalty imposed under subsection (c) of this section, the Commissioner shall consider: The seriousness of the violation; The good faith of the violator; The violator’s history of previous violations; The deleterious effect of the violation on the public and mortgage industry; The assets of the violator; and Any other factors relevant to the determination of the civil penalty. The Commissioner shall revoke the license of the licensee if the Commissioner determines that a licensee, while licensed, has: Been convicted of a felony; or Had a mortgage loan originator license revoked in any governmental jurisdiction.

Before the Commissioner takes any action under § 11-614 or § 11-615 of this subtitle, the Commissioner shall give the licensee an opportunity for a hearing. Notice of the hearing shall be given and the hearing shall be held in accordance with the Administrative Procedure Act. The hearing notice to the licensee shall be sent by certified mail, return receipt requested, to the principal place of business of the licensee at least 30 days before the hearing.

Any person who willfully violates the provisions of this subtitle is guilty of a felony and, on conviction, is subject to a fine not exceeding $25,000 or imprisonment not exceeding 5 years or both.

The employment of a mortgage loan originator licensed under this subtitle by a mortgage lender does not relieve the mortgage lender of a responsibility under this subtitle or under Subtitle 5 of this title, a rule or regulation adopted under this subtitle or under Subtitle 5 of this title, or a law governing mortgage lending in the State.

Each mortgage loan originator shall be covered by a surety bond in accordance with this section. A mortgage loan originator who is an employee of a person subject to licensure under Subtitle 5 of this title may use the surety bond of that person to meet the mortgage loan originator’s surety bond requirement. A mortgage loan originator who is an employee of a person exempt from licensure under Subtitle 5 of this title may use a surety bond of the person to meet the mortgage loan originator’s surety bond requirement, provided the surety bond meets the requirements, based on mortgage loan volume, under § 11–508 of this title. A licensee who is an affiliated insurance producer–mortgage loan originator shall be deemed in compliance with this section if the licensee: Holds a surety bond that would satisfy the surety bond requirements under § 11–508 of this title if the affiliated insurance producer–mortgage loan originator were a licensee under Subtitle 5 of this title; or Is covered under a blanket surety bond held by a financial institution identified in § 11–603.1(a)(1)(i) of this subtitle or a mortgage lender identified in § 11–603.1(a)(1)(ii) or (3)(ii) of this subtitle if the blanket surety bond: Covers all affiliated insurance producer–mortgage loan originators; and Is in the amount of $1,000,000 or another amount as required by the Commissioner by regulation.

Except as otherwise provided in 12 U.S.C. § 5111, the requirements under any federal law and Title 4, Subtitles 1 through 5 of the General Provisions Article regarding the privacy or confidentiality of information or material provided to the Nationwide Multistate Licensing System, and any privilege arising under federal or state law, including the rules of any federal or state court with respect to that information or material, shall continue to apply to that information or material after the information or material has been disclosed to the Nationwide Multistate Licensing System. The information and material may be shared with all state and federal regulatory officials having mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or Title 4, Subtitles 1 through 5 of the General Provisions Article. The Commissioner may enter into information sharing agreements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations representing governmental agencies. Information or material that is subject to a privilege or confidentiality under subsection (a) of this section may not be subject to: Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or a state that has received the information or material; or Subpoena, discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Multistate Licensing System the person to whom the information or material pertains waives, in whole or in part, that privilege. Any provisions of Title 4, Subtitles 1 through 5 of the General Provisions Article relating to the disclosure of any information or material described in subsection (a) of this section that are inconsistent with subsection (a) of this section shall be superseded by the requirements of this section. This section does not apply to information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators that is included in the Nationwide Multistate Licensing System and designated for access by the public.

Nonfederally insured credit unions that employ mortgage loan originators shall register these employees with the Nationwide Multistate Licensing System by providing the information concerning the employees’ identity set forth in 12 U.S.C. § 5106(a)(2).

Notwithstanding Title 4, Subtitles 1 through 5 of the General Provisions Article, and subject to § 11–620 of this subtitle, the Commissioner shall report adjudicated enforcement actions and other relevant information to the Nationwide Multistate Licensing System. The Commissioner shall adopt regulations establishing a process by which a licensee or an applicant for a license may challenge information entered by the Commissioner into the Nationwide Multistate Licensing System.

The unique identifier of a mortgage loan originator shall be clearly displayed as required by the Commissioner by regulation.

A person subject to this subtitle may not, in connection with a mortgage loan or loan application: Make a payment, threat, or promise, directly or indirectly, to another person for the purpose of influencing the person to violate any federal or State law, or any standard of professional practice recognized by the federal or State government; or Make a payment, threat, or promise, directly or indirectly, to an appraiser of residential real estate for the purpose of influencing the independent judgment of the appraiser with respect to the value of the residential real estate, or engage in any other act or practice that impairs or attempts to impair an appraiser’s independence, objectivity, or impartiality, including: Withholding or threatening to withhold payment for an appraisal with the intent to coerce the appraiser to agree to a value, range of values, or minimum value for the residential real estate; Conditioning the payment of an appraisal fee on the opinion, conclusion, or valuation to be reached by the appraiser; or Requesting the appraiser to report a predetermined opinion, conclusion, or valuation. This section does not prohibit a person subject to this subtitle from: Requesting another person to: Consider additional appropriate information; Provide additional details, substantiation, or explanation of a conclusion made by the other person; or Correct errors in an appraisal report or other mortgage document; or Withholding payment for an appraisal pending resolution of an action before a federal or State court or licensing board relating to the appraisal.