TITLE 19
Financial Institutions

CHAPTER 19-14.10
An Act Adopting the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2009

SECTION 19-14.10-4


§ 19-14.10-4. License and registration required.

(a) An individual, unless specifically exempted from this chapter under subsection (b), shall not engage in the business of a mortgage loan originator with respect to any dwelling located in this state without first obtaining and maintaining annually a license under this chapter. Each licensed mortgage loan originator must register with and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.

(b) The following individuals are exempt from this chapter:

(1) Registered mortgage loan originators, when acting for an entity described in § 19-14.10-3(10)(i)(A), (10)(i)(B), or (10)(i)(C) are exempt from this chapter.

(2) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual.

(3) Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence.

(4) A licensed attorney who negotiates the terms of a residential 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 lender, a mortgage broker, or other mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator.

(5) A licensed attorney when performing loan closing services for a licensed lender, licensed loan broker, or for an entity exempt from licensing under § 19-14.1-10(a)(4);

(6) A mortgage loan originator: (i) Who is employed by a lender or loan broker licensed under chapter 14 of title 19 and/or chapter 14.1 of title 19; (ii) Who works at a qualified location; (iii) Who is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry; (iv) Who acts as a mortgage loan originator for residential mortgage loans secured by dwellings (as defined in Section 103(v) of the Truth in Lending Act) constructed, or to be constructed, on real property located in states other than Rhode Island; and (v) Who is licensed or registered as required by applicable law in each state in which such real property is located. As used herein, the term "qualified location" means a location licensed under this chapter that serves as the primary place of employment of at least one mortgage loan originator licensed under chapter 14.10 of title 19.

(c) An individual loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless such independent contractor loan processor or underwriter obtains and maintains a license under chapters 14 and 14.10 of title 19. Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the nationwide mortgage licensing system and registry.

(d) For the purposes of implementing an orderly and efficient licensing process the director, or the director's designee, may establish licensing rules or regulations and interim procedures for licensing and acceptance of applications. For previously registered or licensed individuals the director, or the director's designee, may establish expedited review and licensing procedures as follows:

(1) A mortgage loan originator applicant whose employer at the time of application for a mortgage loan originator license is an entity described in § 19-14.10-3(10)(i)(A), (10)(i)(B), or (10)(i)(C) and who has been assigned a unique identifier through the nationwide mortgage licensing system and registry and who has completed and filed with the director, or the director's designee, all information, documents and requirements for licensure pursuant to this chapter shall be permitted to continue to act as a mortgage loan originator for the period prior to action being taken on his or her application by the director, or the director's designee;

(2) A mortgage loan originator applicant who has been assigned a unique identifier through the Nationwide Mortgage Licensing System and Registry and who has completed and filed with the director, or the director's designee, all information, documents and requirements for licensure pursuant to this chapter and whose employer at the time of application for a mortgage loan originator license is a lender or loan broker licensed under chapters 14 and 14.1 of title 19, shall be permitted to continue to act as a mortgage loan originator for the period prior to action being taken on his or her application by the director, or director's designee, if the applicant and a senior officer or principal of such lender or loan broker files written attestation to the director, or the director's designee that:

(i) The applicant is currently, or has within the six-month (6) period prior to the date of the application, been acting as a registered mortgage loan originator in this state or as a state-licensed mortgage loan originator in another state, in either case under the provisions of Section 1507 of the SAFE Act, 12 U.S.C. § 5106;

(ii) The applicant has never had a mortgage loan license or registration denied, revoked, or suspended in any governmental jurisdiction; and

(iii) The applicant has not been convicted of a felony that would otherwise authorize the director, or the director's designee, to deny the applicant a license.

(3) Any provisional authority to act as a mortgage loan originator issued pursuant to this subsection (d) shall expire on the earlier of: (i) The date on which the director, or the director's designee, issues or denies the application for the license; or (ii) One hundred twenty (120) days from the date of application for the license.

(4) The director, or the director's designee, may deny or suspend the rights of a lender or loan broker licensed under chapter 14 or 14.1 of title 19 to employ a mortgage loan originator under subsection (d) if the director, or the director's designee, finds that such lender or loan broker, a senior official or principal thereof, or the applicant failed to exercise due diligence and good faith when submitting the attestations required in subsection (d)(1) or (d)(2).

History of Section.
(P.L. 2009, ch. 148, § 3; P.L. 2009, ch. 160, § 3; P.L. 2010, ch. 56, § 2; P.L. 2010, ch. 64, § 2; P.L. 2011, ch. 145, § 3.)