Purpose and Applicability. The State legislature has determined that it is in the public interest to require licensees to comply with a continuing education requirement as a prerequisite to the renewal of a mortgage lender license. The continuing education requirement does not apply to the original application for a license. Definitions. In this regulation, the following terms have the meanings indicated: “Continuing education course” or “course” means an educational program related to mortgage lending or brokering which contributes directly to the enhancement of professional competence of a covered employee to engage in the mortgage lending business, as defined in Financial Institutions Article, §11-501, Annotated Code of Maryland. Covered Employees. “Covered employees” means the person with the required experience under Financial Institutions Article, §11-506(b)(2), (3), and (4), Annotated Code of Maryland, and the manager of each branch office licensed, or required to be licensed, by the Commissioner. “Covered employees” does not include an employee who: Has been employed by the licensee for less than 6 months before the expiration date of the licensee's current license; and Had no prior experience as a covered employee with any other licensee. Requirements. Except as provided in §A(2) of this regulation, in order to renew a license, each covered employee of a licensee shall successfully complete in the licensing period immediately preceding the current renewal period at least 8 hours of continuing education in approved courses. The required 8 hours of continuing education shall be the same as the continuing education requirements for mortgage loan originators set forth in Financial Institutions Article, §11-612, Annotated Code of Maryland, and COMAR 09.03.09.03, and include at least the following subjects in the number of hours indicated: Federal law and regulations relating to mortgage origination — 3 hours; Ethics, including instruction on fraud, consumer protection, and fair lending issues — 2 hours; Lending standards and loan terms for the nontraditional mortgage product market — 2 hours; and Maryland law and regulations relating to mortgage lending and origination — 1 hour. Hours in excess of the minimum requirement during any licensing period may not be carried over to a successive period. Reporting, Verification, and Record Keeping. A licensee, when applying for a license renewal, shall: Provide to the Commissioner any information or certification as the Commissioner may require as proof of satisfactory completion of each covered employee's education requirements; and Submit to the Commissioner, in the manner the Commissioner requires, a list of all covered employees. The Commissioner may require verification, on a random or other basis, of satisfactory completion of the requirements of this regulation. A licensee shall retain the evidence reasonably acceptable to the Commissioner to verify satisfactory completion of the requirements of this regulation for a period of at least 3 years after issuance of the renewal license to which it applies. Nonrenewal, Suspension, or Revocation of License. Subject to the notice and hearing requirements of Financial Institutions Article, §11-518, Annotated Code of Maryland, failure to comply with the requirements of this regulation is grounds for: Denial of a license renewal under Financial Institutions Article, §11-511(b), Annotated Code of Maryland; or Suspension or revocation of a license or other sanctions pursuant to Financial Institutions Article, §11-517, Annotated Code of Maryland. The Commissioner may issue to a licensee a cease and desist order under Financial Institutions Article, §11-517, Annotated Code of Maryland, which: Prohibits a covered employee who has failed to comply with this regulation from qualifying as the person with the required experience under Financial Institutions Article, §11-506(b)(2), (3), and (4), Annotated Code of Maryland, or acting as a manager of a branch office; and Continues in effect until the licensee demonstrates to the Commissioner completion by the covered employee of all educational requirements of this regulation.