32-9-116. Application for loan originator license -- employment of loan originator. (1) An application for a loan originator license must include:
     (a) the name and address of the applicant;
     (b) evidence of the applicant's experience and knowledge of the mortgage industry; and
     (c) a statement as to whether the applicant is under investigation, has been convicted of or pleaded guilty to any felony or criminal offense involving fraud or dishonesty, or has been subject to any adverse civil judgment for any conduct involving fraudulent or dishonest dealing.
     (2) The department shall investigate each applicant. The investigation shall include a criminal records check based on the fingerprints of the applicant and a civil records check. The department shall require each applicant to file a set of the applicant's fingerprints, taken by a law enforcement agency, and any other information necessary to complete a statewide and nationwide criminal check with the criminal investigation bureau of the department of justice for state processing and with the federal bureau of investigation for federal processing. All costs associated with the criminal history check are the responsibility of the applicant. Criminal history records provided to the department under this section are confidential and the department may use the records only to determine if the applicant is eligible for licensure. If an investigation outside this state is necessary, the department may require the applicant to advance sufficient funds to pay the actual expenses of the investigation. The department may deny the application if the applicant's criminal history demonstrates any felony criminal convictions or other convictions involving fraud or dishonesty or if the applicant has had any adverse civil judgments involving fraudulent or dishonest dealings.
     (3) A loan originator may transact business only for an employing mortgage broker licensed in accordance with the provisions of this part. Each original license issued to a loan originator must be provided to and maintained by the employing mortgage broker at the mortgage broker's main office. A copy of the loan originator's license must be displayed at the office where that loan originator principally transacts business.
     (4) If the employment of a loan originator is terminated, the mortgage broker shall return the loan originator's license to the department within 5 business days after the termination. For a period of 6 months after the termination of employment, the loan originator may request the transfer of the license to another mortgage broker by submitting a relocation application to the department, along with a fee established by the department by rule. The return of the license of any loan originator to the department that is not transferred to another mortgage broker terminates the right of the loan originator to engage in any residential mortgage loan origination activity until department procedures have been followed to reinstate the license. The license of any loan originator that has been returned to the department and not transferred within 6 months of termination of employment must be canceled.

     History: En. Sec. 10, Ch. 516, L. 2003.