Prior Codifications

1981 Ed., § 26-1001.

Effect of Amendments

D.C. Law 17-90 added par. (12A).

D.C. Law 18-38, in par. (1), deleted "to be occupied by the borrower as the borrower's primary residence" following "home";  added pars.  (1A), (1B), (2A), (2B), (3A), (5A), (9A), (12B), (12C), (12D), (15A), (15B), (16A), (16B), (17A), and (17B);  in par. (5)(A), deleted "to be occupied by the borrower" following "home";  in pars. (7) and (8), substituted "mortgage loan originator, loan officer, mortgage lender," for "mortgage lender";  rewrote par. (12);  and repealed par. (16).   Prior to amendment or repeal, pars. (12) and (16) read as follows:

"(12) 'Mortgage loan' means any loan or other extension of credit that is secured, in whole or in part, by any interest in residential real property in the District of Columbia."

"(16) 'Residential real property' means any owner-occupied real property located in the District of Columbia, which property has a dwelling on it designed principally as a residence with accommodations for not more than 4 families. This term does not include any real property held primarily for rental, investment, or the generation of income through any commercial or industrial enterprise."

Temporary Amendments of Section

Section 2(a) of D.C. Law 12-3 rewrote (9); and repealed (11)(A)(i).

Section 6(b) of D.C. Law 12-3 provides that the act shall expire after 225 days of its having taken effect.

Section 2(a) of D.C. Law 12-101 rewrote (9); and repealed (11)(A)(i).

Section 6(b) of D.C. Law 12-101 provides that the act shall expire after 225 days of its having taken effect.

Section 2(a) of D.C. Law 17-350, in par. (1), deleted "to be occupied by the borrower as the borrower's primary residence"; added pars. (1A), (1B), (2A), (2B), (2C) to read as follows:

"(1A) 'Clerical tasks' means the receipt, collection, and distribution of information common for the processing or underwriting of a loan in the mortgage industry and communication with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan.

"(1B) 'Commissioner' means the Commissioner of the Department of Insurance, Securities, and Banking."

"(2A) 'Conference of State Bank Supervisors' means the professional association of state officials responsible for chartering, regulating, and supervising state-chartered commercial and savings banks and state-licensed branches and agencies of foreign banks.

"(2B) 'Depository institution' shall:

"(A) Have the same meaning as provided in section 3 of the Federal Deposit Insurance Act, approved September 21, 1950 (64 Stat. 873; 12 U.S.C. § 1813); and

"(B) Include any credit union.

"(2C) 'Federal banking agency' 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, or the Federal Deposit Insurance Corporation."

; in par. (5)(A), deleted "to be occupied by the borrower"; added par. (5A) to read as follows:

"(5A) 'Independent contractor' means an individual who is required to obtain and maintain a license under this act to engage in residential mortgage loan origination activities as a loan processor or underwriter."

; in pars. (7) and (8), substituted "mortgage loan originator, loan officer, mortgage lender" for "mortgage lender"; added par. (9A), amended par. (12), added pars. (12A-i), (12A-ii), (12A-iii), (15A), and (15B) to read as follows:

"(9A) 'Loan processor or underwriter' means an individual who performs clerical or support duties as an employee of and at the direction of, and subject to the supervision and instruction of, a person licensed, or exempt from licensing, under this act."

"(12) "Mortgage loan" means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in section 103(v) of the Truth in Lending Act, approved May 29, 1968 (82 Stat. 147; 15 U.S.C. § 1602(v)), or residential real estate upon which is constructed, or intended to be constructed, a dwelling."

"(12A-i)(A) 'Mortgage loan originator' or 'loan officer' means an individual who:

"(i) Takes a residential mortgage application;

"(ii) Offers or negotiates terms of a residential mortgage loan; or

"(iii) Solicits, or offers to solicit, a mortgage loan on behalf of a borrower for compensation or gain.

"(B) The term shall not include:

"(i) An individual who is not otherwise described in subparagraph (A) of this paragraph;

"(ii) An individual or entity solely involved in extension of credit relating to timeshare plans, as defined in 11 U.S.C. § 101(53D).

"(iii) An individual who only performs real estate brokerage activities and is licensed or registered in accordance with District of Columbia law, unless the individual is compensated by a mortgage lender, a mortgage broker, mortgage loan originator, or loan officer, or by any agent of a mortgage lender, mortgage broker, mortgage loan originator, or loan officer.

"(12A-ii) 'Mortgage uniform licensing form' means the SSR application form for mortgage brokers, mortgage lenders, and mortgage loan originators approved by the Commissioner.

"(12A-iii) 'Nationwide Mortgage Licensing System and Registry' or 'NMLSR' means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators, mortgage lenders, mortgage brokers, and loan officers.

"(15A) 'Real estate brokerage activity' means any activity that involves offering or providing real estate brokerage services to the public, including;

"(A) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;

"(B) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;

"(C) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);

"(D) Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; and

"(E) Offering to engage in any activity, or act in any capacity, described in subparagraph (A), (B), (C), or (D) of this paragraph.

"(15B) 'Registered mortgage loan originator' or 'Registered loan officer' means any individual who is:

"(A) A mortgage loan originator or loan officer;

"(B) An employee of:

"(i) A depository institution;

"(ii) A subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or

"(iii) An institution regulated by the Farm Credit Administration; and

"(C) Registered with, and maintains a unique identifier through, the NMLSR."

; repealed par. (16); and added pars. (16A), (17A), and (17B) to read as follows:

"(16A) 'SRR' means the limited liability corporation which owns and operates the NMLSR."

"(17A) 'Takes a residential mortgage loan application' means:

"(A) Recording the borrower's application information in any form for use in a credit decision; or

"(B) Receiving the borrower's application information in any form for use in a credit decision.

"(17B) 'Unique identifier' means a number or other identifier assigned by protocols established by the NMLSR."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary amendment of section, see § 2(a) of the Mortgage Lender and Broker Act of 1996 Emergency Amendment Act of 1997 (D.C. Act 12-23, March 3, 1997, 44 DCR 1773), § 2(a) of the Mortgage Lender and Broker Act of 1996 Second Emergency Amendment Act of 1997 (D.C. Act 12-245, January 13, 1998, 45 DCR 656), and § 2(a) of the Mortgage Lender and Broker Act of 1996 Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-308, March 20, 1998, 45 DCR 1920).

For temporary (90 day) amendment of section, see § 2(a) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(a) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

Law 11-155, the "Mortgage Lender and Broker Act of 1996," was introduced in Council and assigned Bill No. 11-637, which was referred to the Committee on Economic Development. The Bill was adopted on first and second readings on May 7, 1996, and June 4, 1996, respectively. Signed by the Mayor on June 19, 1996, it was assigned Act No. 11-309 and transmitted to both Houses of Congress for its review. D.C. Law 11-155 became effective on September 9, 1996.

Law 12-3, the "Mortgage Lender and Broker Act of 1996 Temporary Amendment Act of 1997," was introduced in Council and assigned Bill No. 12-82. The Bill was adopted on first and second readings on February 4, 1997, and March 4, 1997, respectively. Signed by the Mayor on March 19, 1997, it was assigned Act No. 12-45 and transmitted to both Houses of Congress for its review. D.C. Law 12-3 became effective on May 23, 1997.

Law 12-101, the "Mortgage Lender and Broker Act of 1996 Temporary Amendment Act of 1998," was introduced in Council and assigned Bill No. 12-475. The Bill was adopted on first and second readings on December 4, 1997, and January 6, 1998, respectively. Signed by the Mayor on January 27, 1998, it was assigned Act No. 12-277 and transmitted to both Houses of Congress for its review. D.C. Law 12- 101 became effective on April 30, 1998.

Law 12-116, the "Mortgage Lender and Broker Act of 1996 Amendment Act of 1998," was introduced in Council and assigned Bill No. 12-426, which was referred to the Committee on Economic Development. The Bill was adopted on first and second readings on February 3, 1998, and March 3, 1998, respectively. Signed by the Mayor on March 17, 1998, it was assigned Act No. 12-313 and transmitted to both Houses of Congress for its review. D.C. Law 12-116 became effective on June 6, 1998.

Law 17-90, the "Mortgage Disclosure Amendment Act of 2007", was introduced in Council and assigned Bill No. 17-167 which was referred to the Committee on Public Services and Consumer Affairs. The Bill was adopted on first and second readings on October 2, 2007, and November 6, 2007, respectively. Signed by the Mayor on November 27, 2007, it was assigned Act No. 17-208 and transmitted to both Houses of Congress for its review. D.C. Law 17-90 became effective on January 29, 2008.

Law 18-38, the "Mortgage Lender and Broker Amendment Act of 2009", was introduced in Council and assigned Bill No. 18-133, which was referred to the Committee on Public Service and Consumer Affairs. The Bill was adopted on first and second readings on April 7, 2009, and May 5, 2009, respectively. Signed by the Mayor on May 21, 2009, it was assigned Act No. 18-89 and transmitted to both Houses of Congress for its review. D.C. Law 18-38 became effective on July 18, 2009.

Miscellaneous Notes

Section 4 of D.C. Law 17-90 provides that section 2 shall apply 30 days after the effective date of this act.

Prior Codifications

1981 Ed., § 26-1002.

Effect of Amendments

D.C. Law 14-132 repealed par. (4) which had read as follows:

"(4) Any person who makes or brokers 3 or fewer mortgage loans per calendar year;".

D.C. Law 18-38, rewrote par. (1); in par. (10), deleted "and" from the end; in par. (11), substituted "; and" for a period at the end; and added par. (12). Prior to amendment, par. (1) read as follows:

"(1) Any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of the United States, any state or territory of the United States, or the District, and any other financial institution incorporated or chartered under the laws of the District or of the United States, that accepts deposits and is regulated under this title, and subsidiaries and affiliates of such entities which maintain their principal office or a branch office in the District of Columbia and in which the lender, subsidiary, or affiliate is subject to the general supervision or regulation of, or subject to audit or examination by, a regulatory body or agency of the United States, any state or territory of the United States, or the District;".

Temporary Amendments of Section

Section 2(b) of D.C. Law 17-350, in par. (10), substituted a semicolon for "; and"; in par. (11), substituted "; and" for a period; and added par. (12) to read as follows:

"(12) Persons acting as registered mortgage loan originators, when acting for a federal banking agency."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 601(a)(1) of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).

For temporary (90 day) amendment of section, see § 2(b) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(b) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For legislative history of D.C. Law 12-116, see Historical and Statutory Notes following § 26-1101.

For Law 14-132, see notes following § 26-603.

For Law 18-38, see notes following § 26-1101.

References in Text

The Internal Revenue Code, referred to in (9), is codified as Title 26 of the U.S. Code.

Prior Codifications

1981 Ed., § 26-1003.

Effect of Amendments

D.C. Law 14-28 rewrote subsec. (f)(3), which had read:

"(3) A license fee of $500."

D.C. Law 15-38, in subsec. (j), substituted "Financial Services endorsement to a basic business license under the basic" for "Class A Financial Services endorsement to a master business license under the master".

D.C. Law 18-38 rewrote the section, which had read as follows:

"(a) No person shall engage in business as a mortgage lender or mortgage broker, or both, or hold himself out to the public to be a mortgage lender or mortgage broker for 60 days after September 9, 1996, unless such person has first obtained a license under this chapter.

"(b) To qualify for a license, an applicant shall satisfy the Superintendent that the applicant, including its members, officers, directors, and principals is of good moral character and has sufficient financial responsibility, business experience, and general fitness to:

"(1) Engage in business as a mortgage lender or mortgage broker;

"(2) Warrant the belief that the business will be conducted lawfully, honestly, fairly, and efficiently; and

"(3) In the case of an applicant for a license to act as a mortgage lender, capitalize the business by maintaining at least $200,000 of funds available, and in the case of an applicant for a license to act as a mortgage broker, capitalize the business by maintaining at least $10,000 of funds available.

"(c) The Superintendent may deny an application for a license to any person who has committed any act prior to the granting of the license that would be a ground for suspension or revocation of a license under this chapter.

"(d) To apply for a license an applicant shall:

"(1) Complete, sign, and submit to the Superintendent an application made under oath on the form that the Superintendent requires; and

"(2) Comply with all conditions and provisions of the application for licensure.

"(e) The application shall include:

"(1) If the applicant is an individual, the applicant's name, business address, and telephone number, and residential address and telephone number;

"(2) If the applicant is a partnership, limited liability company, or other noncorporate business association, the business name, business address, and telephone number, and the residential address and telephone number of each:

"(A) General partner, if the applicant is a limited partnership;

"(B) General partner who holds an interest in the partnership of more than 10%, if the applicant is a general partnership; or

"(C) Member, if the applicant is a limited liability company or a noncorporate business association;

"(3) If the applicant is a corporation:

"(A) The name, address, and telephone number of the corporate entity; and

"(B) The name, business telephone number, and residential address and telephone number of the president, senior vice presidents, secretary, and treasurer, each director and each stockholder owning or controlling 10% or more of any class of stock in the corporation;

"(4) The name under which the mortgage lender or mortgage broker business is to be conducted;

"(5) The name and address of the applicant's registered agent, if any;

"(6) The address of the location of the business to be licensed;

"(7) Whether the applicant seeks a license to act as a mortgage lender, mortgage broker, or both; and

"(8) Such other information concerning the financial responsibility, background, experience, and activities of the applicant and its members, officers, directors, and principals as the Superintendent may require.

"(f) With each application, the applicant shall pay to the Superintendent:

"(1) A nonrefundable investigation fee of $100;

"(2) A nonrefundable application fee of $500; and

"(3) A license fee of $500 for a mortgage broker license, $600 for a mortgage lender license, or $700 for a dual mortgage broker and lender license.

"(g) The Superintendent may, from time to time, increase or decrease the fees set forth in this section. The fees shall be fixed at such rates, and computed on such bases and in such manner as may, in the judgement of the Superintendent, be necessary to defray the approximate costs of carrying out the regulatory functions set forth in this chapter. These fees shall not be abated by surrender, suspension, or revocation of a license.

"(h) For each license for which an applicant applies, the applicant shall:

"(1) Submit a separate application;

"(2) Pay a separate license fee; and

"(3) File a separate surety bond or other financial guaranty under subsection (i) of this section.

"(i) An applicant for an original license or for the renewal of a license shall file a surety bond with each original application and any renewal application for the license.

"(1) The surety bond shall:

"(A) Run to the Superintendent for the benefit of any person who has been damaged by a licensee as a result of violating any law or regulation governing the activities of mortgage lenders or mortgage brokers;

"(B) Be issued by a surety company authorized to do business in the District;

"(C) Be conditioned upon the applicant complying with all District laws regulating the activities of mortgage lenders, mortgage brokers, and mortgage loan lending and performing all written agreements with borrowers or prospective borrowers, accounting for all funds received by the licensee in conformity with a standard system of accounting consistently applied; and

"(D) Be continuously maintained thereafter for as long as any license issued under this chapter remains in force.

"(2) If an applicant has not conducted business in the District in any of the 3 calendar years preceding the year in which an original application for a license is filed, the surety bond required under this subsection shall be in the amount of $12,500.

"(3) If an applicant has conducted business as a mortgage lender or mortgage broker in the District in any of the 3 calendar years preceding the year in which an original or renewal application is filed, the applicant shall provide a sworn statement setting forth the total dollar amount of mortgage loans applied for and accepted or mortgage loans applied for, procured, and accepted by the mortgage lender or mortgage broker during the latest calendar year such business was conducted. The bond required in this circumstance shall be determined as follows:

"(A) Where the total dollar amount of stated loans was $1,000,000 or less, the bond shall be in the amount of $12,500;

"(B) Where the total dollar amount of stated loans was more than $1,000,000 but not more than $2,000,000, the bond shall be in the amount of $17,500;

"(C) Where the total dollar amount of stated loans was more than $2,000,000 but not more than $3,000,000, the bond shall be in the amount of $25,000; and

"(D) Where the total dollar amount of stated loans was more than $3,000,000, the bond shall be in the amount of $50,000.

"(4) Subject to approval by the Superintendent, if an applicant files 4 or more original or renewal applications at the same time, the applicant may provide a blanket surety bond for all licensed offices in the amount of $200,000.

"(5) Any person who may be damaged by noncompliance of a licensee with any condition of such bond may proceed on such bond against the principal or surety thereon, or both, to recover damages. The aggregate liability under the bond shall not exceed the penal sum of the bond.

"(j) Any license issued pursuant to this section shall be issued as a Financial Services endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of Title 47 of the District of Columbia Official Code."

Temporary Amendments of Section

Section 2(c) of D.C. Law 17-350 rewrote subsecs. (a), (b)(1), and (b)(3) to read as follows:

"(a)(1) No person shall engage in business as a mortgage loan originator, loan officer, mortgage lender, mortgage broker, or any permissible combination thereof, or hold himself out to the public to be a mortgage loan originator, loan officer, mortgage lender, mortgage broker, or any permissible combination thereof, unless such person has first obtained a license under this act. Each licensee shall register with and maintain a valid unique identifier issued by the NMLSR.

"(2) Each independent contractor loan processor or underwriter licensed as a mortgage loan originator shall have, and maintain, a valid unique identifier issued by the NMLSR.

"(3) An individual engaging solely in loan processor or underwriting activities, who does not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator shall not be required to obtain and maintain a license under this act."

"(1) Engage in business as a mortgage loan originator, loan officer, mortgage lender, or mortgage broker;"

"(3) Meet the minimum liquidity and capital requirements as prescribed by the Commissioner."

; added subsec. (c-1) to read as follows:

"(c-1) The Commissioner shall deny an application if the applicant has:

"(1) Had a mortgage loan originator license revoked by any governmental jurisdiction;

"(2) Been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court during the 7-year period preceding the date of the application for licensing and registration; or

"(3) At any time preceding such date of application, been convicted of, or pled guilty or nolo contendere to a felony, if such felony involved an act of fraud or dishonesty, a breach of trust, or money laundering."

; rewrote subsecs. (d)(1), (e)(7), and (f) to read as follows:

"(1) Complete and sign an application made under oath on the form that the Commissioner requires."

"(7) Whether the applicant seeks a license to act as a mortgage loan originator, loan officer, mortgage lender, mortgage broker, or any permissible combination thereof; and"

"(f) With each application for licensure, the applicant shall pay the applicable fees prescribed by the Commissioner and any third-party fees."

; in subsec. (h)(2), deleted "and" at the end; in subsec. (h)(3), substituted a semicolon for a period, designated the existing text as subpar. (A) and added subpar. (B) to read as follows:

"(B) The applicant shall demonstrate that the applicant has met net worth and surety bond requirements or, as prescribed by the Commissioner, paid into a District of Columbia fund."

; added subsecs. (h)(4) through (6) to read as follows:

"(4) Meet educational requirements prescribed by the Commissioner;

"(5) Provide proof of compliance with pre-licensure testing and post-licensure continuing education requirements as prescribed by the Commissioner; and

"(6) Comply with any other provision prescribed by the Commissioner."

; added subsec. (h-1) to read as follows:

"(h-1) The Commissioner shall require, by rule, that an applicant, and any such other person as the Commissioner considers appropriate, applying for licensure under this act, submit his name, contact information and other identifying information, fingerprints, written consent to a criminal background check, an independent credit report, and information related to any administrative, civil, or criminal findings by any governmental jurisdiction with the applicant's application. For the purposes of this act, the Commissioner may use the NMLSR as an agent for requesting information from, and distributing information to, the Federal Bureau of Investigation, the Department of Justice, any governmental agency, or any source so directed by the Commissioner."

; in subsec. (i), substituted "mortgage lenders, mortgage brokers, mortgage loan originators, or loan officers" for "mortgage lenders or mortgage brokers" in par. (1)(A), repealed pars. (2) through (4), and added par. (6) to read as follows:

"(6) Surety bond requirements shall be prescribed by the Commissioner.".

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary amendment of section, see § 2(a) of the Mortgage Lender and Broker Act of 1996 Time Extension Emergency Act of 1996 (D.C. Act 11-439, December 4, 1996, 44 DCR 6656), and § 2(a) of the Mortgage Lender and Broker Act of 1996 Time Extension Congressional Review Emergency Amendment Act of 1997 (D.C. Act 12-21, March 3, 1997, 44 DCR 1768).

For temporary amendment of section, see § 2(b) of the Mortgage Lender and Broker Act of 1996 Emergency Amendment Act of 1997 (D.C. Act 12-23, March 3, 1997, 44 DCR 1773), § 2(b) of the Mortgage Lender and Broker Act of 1996 Second Emergency Amendment Act of 1997 (D.C. Act 12-245, January 13, 1998, 45 DCR 656), and § 2(b) of the Mortgage Lender and Broker Act of 1996 Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-308, March 20, 1998, 45 DCR 1920).

For temporary (90 day) amendment of section, see § 2902 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see § 3(r) of Streamlining Regulation Emergency Act of 2003 (D.C. Act 15-145, August 11, 2003, 50 DCR 6896).

For temporary (90 day) amendment of section, see § 2(c) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(c) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For legislative history of D.C. Law 12-3, see Historical and Statutory Notes following § 26-1101.

For legislative history of D.C. Law 12-101, see Historical and Statutory Notes following § 26-1101.

For legislative history of D.C. Law 12-116, see Historical and Statutory Notes following § 26-1101.

Law 12-261, the "Second Omnibus Regulatory Reform Amendment Act of 1998," was introduced in Council and assigned Bill No. 12-845, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 1, 1998, and December 15, 1998, respectively. Signed by the Mayor on December 31, 1998, it was assigned Act No. 12-615 and transmitted to both Houses of Congress for its review. D.C. Law 12-261 became effective on April 20, 1999.

For Law 14-28, see notes following § 26-131.10.

For Law 15-38, see notes following § 26-901.

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Temporary amendment of section: Section 2(b) of D.C. Law 12-3, in (b)(3), substituted "maintaining" for "having" twice.

Section 6(b) of D.C. Law 12-3 provides that the act shall expire after 225 days of its having taken effect.

Section 2(b) of D.C. Law 12-101, in (b)(3), substituted "maintaining" for "having" twice.

Section 6(b) of D.C. Law 12-101 provides that the act shall expire after 225 days of its having taken effect.

Fees credited to the Office of Banking and Financial Institutions Enterprise Fund: Section 1804(4) of D.C. Law 12-60 provided that all fees received pursuant to § 26-1003(f) shall be credited to the Office of Banking and Financial Institutions Enterprise Fund.

Section 3 of D.C. Law 18-38 provides:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (o), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking has promulgated rules implementing this act."

Prior Codifications

1981 Ed., § 26-1004.

Effect of Amendments

D.C. Law 18-38, in subsec. (d)(1), substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "mortgage lender or mortgage broker".

Temporary Amendments of Section

Section 2(d) of D.C. Law 17-350, in subsec. (c), inserted the following sentence at the end: "To assist in the performance of the Commissioner's duties under this act, the Commissioner may contract with a third party, including the SRR, the Conference of State Bank Supervisors, or its affiliates or subsidiaries, to perform any functions, including the collection of licensing and processing fees, collection of contact information and other identifying information, fingerprints, written consent to a criminal background check, personal history and experience, and conduct of examinations related to mortgage loan originator, loan officer, mortgage lender, or mortgage broker activities, that the Commissioner may consider appropriate."; and, in subsec. (d)(1), substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "mortgage lender or mortgage broker".

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary amendment of section, see § 2(b) of the Mortgage Lender and Broker Act of 1996 Time Extension Emergency Act of 1996 (D.C. Act 11-439, December 4, 1996, 44 DCR 6656), and § 2(b) of the Mortgage Lender and Broker Act of 1996 Time Extension Congressional Review Emergency Amendment Act of 1997 (D.C. Act 12-21, March 3, 1997, 44 DCR 1768).

For temporary (90 day) amendment of section, see § 2(d) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(d) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1005.

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

Miscellaneous Notes

Fees credited to the Office of Banking and Financial Institutions Enterprise Fund: Section 1804(4) of D.C. Law 12-60 provided that all fees received pursuant to § 26-1005(a)(3) shall be credited to the Office of Banking and Financial Institutions Enterprise Fund.

Prior Codifications

1981 Ed., § 26-1006.

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1007.

Effect of Amendments

D.C. Law 13-239 rewrote subsec. (a) which had read:

"(a) A license expires on the December 31 after its effective date unless the license is renewed for a 1-year term as provided in this section."

D.C. Law 14-28 rewrote subsec. (d) which had read:

"(d) In order to defray the costs of their examination, supervision, and regulation, every mortgage lender required to be licensed under this chapter shall pay an annual renewal fee calculated in accordance with a schedule set by regulation promulgated by the Superintendent. The schedule shall bear a reasonable relationship to the total assets of such individual mortgage lenders and to other factors relating to their supervision and regulation. Every mortgage broker required to be licensed under this chapter shall pay an annual renewal fee calculated in accordance with a schedule set by regulation promulgated by the Superintendent. All such fees shall be assessed on or before April 25, for that calendar year, and on or before April 25 for every calendar year thereafter. All such fees shall be paid by the licensed mortgage lenders and mortgage brokers to the Superintendent on or before May 25 of each calendar year or within 30 days of the receipt of each assessment."

D.C. Law 18-38 rewrote subsec. (b)(1); added subsec. (b)(1A); and repealed subsec. (d). Prior to amendment or repeal, subsecs. (b)(1) and (d) read as follows:

"(1) Otherwise is entitled to be licensed;"

"(d) To defray the costs of their examination, supervision, and regulation, every mortgage lender and mortgage broker required to be licensed under this chapter shall pay an annual renewal fee and examination fee as follows:

"(1) At the time the licensee submits its application for renewal, the licensee shall pay a renewal fee of $900 for a mortgage broker license, $1,000 for a mortgage lender license, or $1,200 for a dual mortgage broker and lender license.

(2) "At the time the licensee is examined, the licensee shall pay an examination fee of $400, plus $6.60 per loan brokered in the expiring license period, for a mortgage broker license; $800, plus $6.60 per loan made, originated, brokered, or serviced in the expiring license period, for a mortgage lender license; or $1,200, plus $6.60 per loan made, originated, brokered, or serviced in the expiring license period, for a dual mortgage broker and lender license."

Temporary Amendments of Section

Section 2(e) of D.C. Law 17-350, in subsec. (d), repealed pars. (1) and (2) and added pars. (3) and (4) to read as follows:

"(3) With each renewal application, the applicant shall demonstrate that the applicant continues to meet the minimum standards for license issuance under this act and that the applicant has satisfied the annual continuing education requirements under this act.

"(4) With each renewal application, the applicant shall pay all applicable fees and assessments as prescribed by the Commissioner and all third-party fees."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 2 of the Mortgage Lender and Broker License Renewal Emergency Amendment Act of 2000 (D.C. Act 13-523, December 30, 2000, 48 DCR 622).

For temporary (90 day) amendment of section, see § 2(e) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(e) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

Law 13-239, the "Mortgage Lender and Broker License Renewal Amendment Act of 2000", was introduced in Council and assigned Bill No. 13-708, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on November 8, 2000, and December 5, 2000, respectively. Signed by the Mayor on December 21, 2000, it was assigned Act No. 13-517 and transmitted to both Houses of Congress for its review. D.C. Law 13-239 became effective on April 3, 2001.

For Law 14-28, see notes under § 26-131.01.

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Fees credited to the Office of Banking and Financial Institutions Enterprise Fund: Section 1804(4) of D.C. Law 12-60 provided that all fees received pursuant to § 26-1007(d) shall be credited to the Office of Banking and Financial Institutions Enterprise Fund.

Prior Codifications

1981 Ed., § 26-1008.

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1009.

Effect of Amendments

D.C. Law 18-38, in subsec. (d), substituted "independent contractor or mortgage broker" for "mortgage broker".

Temporary Amendments of Section

Section 2(f) of D.C. Law 17-350, in subsec. (d), substituted "independent contractor or mortgage broker" for "mortgage broker".

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 2(f) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(f) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1010.

Effect of Amendments

D.C. Law 14-132 made nonsubstantive changes in subsecs. (b)(1) and (b)(2)(D); and added subsec. (b)(3).

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 601(a)(2) of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 14-132, see notes following § 26-603.

Prior Codifications

1981 Ed., § 26-1011.

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1012.

Effect of Amendments

D.C. Law 18-38 added subsecs. (f) to (i).

Temporary Amendments of Section

Section 2(g) of D.C. Law 17-350 added subsecs. (f), (g), (h), and (i) to read as follows:

"(f) To carry out the purposes of this section, the Commissioner may do any of the following:

"(1) Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;

"(2) Enter into agreements or relationships with other government officials or regulatory associations to improve efficiencies and reduce regulatory burdens by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this section;

"(3) Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate the licensee or person subject to this act;

"(4) Accept and rely on examination or investigation reports made by other government officials within or without the District of Columbia;

"(5) Accept audit reports made by an independent certified public accountant for the licensee, or person subject to this act, in the course of an examination covering the same general subject matter as the audit and may incorporate the audit report in the report of the examination, report of investigation, or other writing of the Commissioner;

"(6) Assess the licensee, or person subject to this act, the cost of the services in paragraph (1) of this subsection.".

"(g) This section shall remain in effect whether such licensee, or person subject to this act, acts or claims to act under any licensing or registration law of the District of Columbia, or claims to act without such authority.

"(h) No licensee, or person subject to investigation or examination under this section, shall knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.

"(i) All examination fees shall be prescribed by the Commissioner."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 2(g) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(g) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Section 3 of D.C. Law 18-38 provides:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (o), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking has promulgated rules implementing this act."

Prior Codifications

1981 Ed., § 26-1013.

Effect of Amendments

D.C. Law 17-90 added subsec. (a-1).

D.C. Law 18-38, in subsec. (a)(1), deleted "to be occupied by the borrower" following "home"; in subsec. (a-1), rewrote pars. (1), (3)(J) to (L), and (9), which had read as follows:

"(a-1)(1) Within 3 business days of an application for a non-conventional mortgage loan, the mortgage lender shall provide to the borrower the written disclosures required under this section."

"(J) $........../month = Your beginning interest rate + taxes and insurance.

"(K) $........../month = Your estimated fully-indexed rate (i.e., what you pay after the beginning rate ends) + taxes and insurance.

"(L) $........../month = Your maximum possible interest rate + taxes and insurance."

"(9) Within 5 business days of receiving from the mortgage lender the information pursuant to this section, the borrower may cancel the application for a mortgage loan with no loss of any security deposit or any other funds applied to guarantee an interest rate, not including reasonable fees incurred to process the application. The borrower shall be notified of this right to cancel at the time the mortgage lender provides the information pursuant to this section."

Temporary Amendments of Section

Section 2(h) of D.C. Law 17-350, in subsec. (a)(1), deleted "to be occupied by the borrower"; and, in subsec. (a-1), rewrote pars. (1), (3)(J) through (L), and (9), to read as follows:

"(a-1)(1) Within 3 business days of an application for a non-conventional mortgage loan, the licensee shall provide to the borrower the written disclosures executed by the lender that are required under this section."

"(J) $__________/month = Your principal + initial interest + taxes and insurance.

"(K) $__________/month = Your principal + adjusted interest + taxes and insurance.

"(L) $__________/month = Your principal + maximum interest + taxes and insurance.".

"(9) Within 5 business days of receiving the information pursuant to this section, the borrower may cancel the application for a mortgage loan with no loss of any security deposit or any other funds applied to guarantee an interest rate, not including reasonable fees incurred to process the application. The borrower shall be notified of this right to cancel at the time the information pursuant to this section is provided."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 2(h) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(h) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 17-90, see notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Section 4 of D.C. Law 17-90 provides that section 2 shall apply 30 days after the effective date of this act.

Prior Codifications

1981 Ed., § 26-1014.

Effect of Amendments

D.C. Law 14-132, in subsec. (a),substituted ", or person required to be licensed under this chapter, shall;" for "shall"; made nonsubstantive changes in subsecs. (a)(7) and (a)(8); and added subsecs. (a)(9), (a)(10), and (a)(11).

D.C. Law 18-38, in subsec. (a), rewrote the introductory language and par. (11); and added subsec. (d). Prior to amendment, the introductory language and par. (11) of subsec. (a) read as follows:

"(a) No mortgage lender or mortgage broker required to be licensed under this chapter, or person required to be licensed under this chapter, shall:"

"(11) Engage in the business as a mortgage lender, mortgage broker, or hold himself or herself out to the public to be a mortgage lender or mortgage broker, without a license under § 26-1104 or an exemption under § 26-1102."

Temporary Amendments of Section

Section 2(i) of D.C. Law 17-350, in subsec. (a), substituted "mortgage broker, mortgage lender, mortgage loan originator, or loan officer" for "mortgage broker or lender" in the lead-in text and rewrote par. (11) to read as follows:

"(11) Engage in the business as a mortgage loan originator, mortgage lender, loan officer, or mortgage broker, or hold himself out to the public to be a mortgage loan originator, loan officer, mortgage lender, or mortgage broker, without a license under section 5 or without an exemption under section 3."

; and added subsec. (d) to read as follows:

"(d) A mortgage loan originator or loan officer required to be licensed under this act shall not:

"(1) Directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person;

"(2) Engage in any unfair or deceptive practice toward any person;

"(3) Obtain property by fraud or misrepresentation;

"(4) Solicit or enter into a contract with a borrower that provides in substance that the person or individual subject to this act may earn a fee or commission through "best efforts" to obtain a loan even though no loan is actually obtained for the borrower;

"(5) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting;

"(6) Assist or aid or abet any person in the conduct of business under this act without a valid license as required under this act;

"(7) Fail to make disclosures as required by this act and any other applicable federal or District law, including regulations thereunder;

"(8) Fail to comply with this act or rules promulgated under this act, or fail to comply with any other federal or District law, including the rules and regulations thereunder, applicable to any business authorized or conducted under this act;

"(9) Make, in any manner, any false or deceptive statement or representation, including with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan, or engage in bait and switch advertising;

"(10) Negligently make any false statement or knowingly and willfully make any omission of material fact in connection with any information or reports filed with a governmental agency or the NMLSR or in connection with any investigation conducted by the Commissioner or another governmental agency;

"(11) Make any payment, threat, or promise, directly or indirectly, to any person for the purposes of influencing the independent judgment of the person in connection with a residential mortgage loan, or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property for the purposes of influencing the independent judgment of the appraiser with respect to the value of the property;

"(12) Collect, charge, attempt to collect or charge, or use or propose any agreement purporting to collect or charge any fee prohibited by this act;

"(13) Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer; or

"(14) Fail to truthfully account for monies belonging to a party to a residential mortgage loan transaction."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 601(a)(3) of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).

For temporary (90 day) amendment of section, see § 2(i) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(i) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 14-132, see notes following § 26-603.

For Law 18-38, see notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1015.

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1016.

Effect of Amendments

D.C. Law 18-38, in the introductory language, substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "mortgage lender or mortgage broker"; and, in par. (2), substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "lender or broker".

Temporary Amendments of Section

Section 2(j) of D.C. Law 17-350, in the lead-in text, substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "mortgage lender or mortgage broker";   and, in par. (2), substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "lender or broker".

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 2(j) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(j) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Section 3 of D.C. Law 18-38 provides:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (o), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking has promulgated rules implementing this act."

Prior Codifications

1981 Ed., § 26-1017.

Effect of Amendments

D.C. Law 18-38 substituted "Commissioner" for "Superintendent"; in subsecs. (a) and (b), substituted "licensee or person required to be licensed under this chapter" for "licensee"; and, in subsec. (c), substituted "Attorney General" for "Corporation Counsel".

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1018.

Effect of Amendments

D.C. Law 14-132 added subsec. (a)(12A); and, in subsec. (b)(1), substituted "The Commissioner may enforce the provisions of this section, or any rules and regulations adopted hereunder, by issuing an order against any licensee or person required to be licensed." for "The Superintendent may enforce the provisions of this section or any rules and regulations adopted by issuing an order: (A) To cease and desist from the violation and any further similar violations; and (B) 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."

D.C. Law 18-38, in subsec. (b)(1), added the second sentence; and, in subsec. (b)(2), substituted "$25,000" for "$1,000".

Temporary Amendments of Section

Section 2(k) of D.C. Law 17-350, in subsec. (b)(2), substituted "$25,000" for "$1,000".

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 601(a)(4) of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).

For temporary (90 day) amendment of section, see § 2(k) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(k) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 14-132, see notes following § 26-603.

For Law 18-38, see notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1019.

Effect of Amendments

D.C. Law 14-132, rewrote subsec. (a); and added subsec. (d). Subsec. (a) had read as follows:

"(a) Before the Superintendent takes any action under § 26-1117 or § 26-1118, the Superintendent shall give the licensee an opportunity for a hearing."

D.C. Law 18-38 rewrote the section, which had read as follows:

"(a) Except as provided in subsection (d) of this section, the Commissioner shall give the licensee an opportunity for a hearing before the Commissioner takes any action under § 26-1117 and § 26-1118.

"(b) Notice of the hearing shall be given to the licensee and the hearing shall be held in accordance with the contested case provisions of subchapter I of Chapter 5 of Title 2.

"(c) 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.

"(d) If the Commissioner determines that an emergency condition exists that may endanger the public health or safety of the District due to noncompliance with this chapter, the Commissioner may issue a temporary cease and desist order to require a licensee, or a person required to have a license, to cease operations immediately; provided, that the duration of a temporary cease and desist order issued under this subsection shall not exceed 30 days and the order includes notice of a hearing to be held within 30 days of the order to be held pursuant to subsection (b) and (c) of this section. Any person subject to a cease and desist order may appeal the order within 15 days, but shall be required to comply with the order pending appeal."

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 601(a)(5) of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 14-132, see notes following § 26-603.

For Law 18-38, see notes following § 26-1101.

Prior Codifications

1981 Ed., § 26-1020.

Effect of Amendments

D.C. Law 18-38 substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "mortgage lender or mortgage broker".

Temporary Amendments of Section

Section 2(l) of D.C. Law 17-350 substituted "mortgage lender, mortgage broker, mortgage loan originator, or loan officer" for "mortgage lender or mortgage broker".

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) amendment of section, see § 2(l) of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) amendment of section, see § 2(l) of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.

For Law 18-38, see notes following § 26-1101.

Legislative History of Laws

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Section 3 of D.C. Law 18-38 provides:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (o), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking has promulgated rules implementing this act."

Legislative History of Laws

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Section 3 of D.C. Law 18-38 provides:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (o), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking has promulgated rules implementing this act."

Legislative History of Laws

For Law 18-38, see notes following § 26-1101.

Miscellaneous Notes

Section 3 of D.C. Law 18-38 provides:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (o), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking has promulgated rules implementing this act."

Prior Codifications

1981 Ed., § 26-1021.

Temporary Addition of Section

Section 2(m) of D.C. Law 17-350 added sections to read as follows:

"Sec. 22a. Confidential information.

"(a) To assist in the performance of the Commissioner's duties under this act, the Commissioner may:

"(1) Share documents, materials, or other information, including confidential and privileged documents, materials, or information subject to this act, with other local, state, federal, and international regulatory agencies, with the Conference of State Bank Supervisors, SRR, NMLSR, their affiliates, or subsidiaries, or with state, federal, and international law enforcement authorities; provided, that the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;

"(2) Receive documents, materials, or information, including confidential and privileged documents, materials, or other information, from the Conference of State Bank Supervisors, SRR, NMLSR, their affiliates, or subsidiaries, or from regulatory and law enforcement officials of foreign or other domestic jurisdictions, and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information;

"(3) Enter into agreements with the entities set forth in paragraph (1) of this subsection governing sharing and use of information consistent with the act; or

"(4) Authorize a national criminal background check and submission of fingerprints and other identifying information, submitted through the NMLSR, and other information with, and receive criminal history record information from, the NMLSR, the Metropolitan Police Department, and the Federal Bureau of Investigation for the purposes of facilitating determinations regarding eligibility for licensure under this act.

"Sec. 22b. Nationwide Mortgage Licensing System and Registry reporting requirements.

"(a) The Commissioner shall regularly report violations of this act, as well as enforcement actions and other relevant information, to the NMLSR. The reports shall be subject to the provisions of section 22a.

"(b) Each licensee shall submit to the NMLSR reports of condition, which shall be in such form and shall contain such information as the NMLSR may require.

"Sec. 22c. Nationwide Mortgage Licensing System and Registry information challenge process.

"The Commissioner shall establish a process whereby licensees may challenge information entered into the NMLSR by the Commissioner."

Section 3 of D.C. Law 17-350 added a provision to read as follows:

"Sec. 3. Applicability.

"Except for section 2(c)(1), (g), (j), and (l), this act shall not apply until the Commissioner of the Department of Insurance, Securities, and Banking ('Commissioner') has promulgated rules implementing this act.   The mortgage loan originator requirements shall not apply until such time as the District of Columbia, through the Commissioner, has become a part of the Nationwide Mortgage Licensing System and Registry ('NMLSR') and the NMLSR is operational to receive and process applications for licensing of District of Columbia loan originators or by December 31, 2009, whichever is later."

Section 5(b) of D.C. Law 17-350 provides that the act shall expire after 225 days of its having taken effect.

Emergency Act Amendments

For temporary (90 day) additions, see §§ 2(m), 3 of Mortgage Lender and Broker Emergency Amendment Act of 2008 (D.C. Act 17-617, December 22, 2008, 56 DCR 189).

For temporary (90 day) additions, see §§ 2(m), 3 of Mortgage Lender and Broker Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-31, March 16, 2009, 56 DCR 2327).

Legislative History of Laws

For legislative history of D.C. Law 11-155, see Historical and Statutory Notes following § 26-1101.