Mortgage Licensing System

Suggested State Legislation: This Act allows the state to participate in the National Mortgage Licensing System that the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators are implementing under a Uniform Mortgage Licensing Project.

Submitted as:
Connecticut
Public Act No. 07-156
Status: Enacted into law in 2007.

Suggested State Legislation: 2009 Docket

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Section 1. [Short Title.] 1 This Act shall be cited as “An Act to Permit State Participation In the National Mortgage Licensing System.”

Section 2. [Definitions.] As used in this Act, “National Mortgage Licensing System” means the National Mortgage Licensing System to be implemented pursuant to a Uniform Mortgage Licensing Project under the auspices of the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

Section 3. [Banking Commissioner Participation in National Mortgage Licensing System.]
(a) The state [Banking Commissioner] may participate in the National Mortgage Licensing System and permit such System to process applications for first mortgage lender, first mortgage correspondent lender, first mortgage broker, secondary mortgage lender, secondary mortgage correspondent lender, secondary mortgage broker and originator licenses in this state, as defined under [insert citation], and receive and maintain records related to such licenses that are allowed or required to be maintained by the [commissioner].
(b) Applicants for licenses listed under subsection (a) of this section, shall, at the time of making such application, pay to the National Mortgage Licensing System the required license fee and processing fee for an initial or renewal application.
(c) The [commissioner] may conduct a criminal history records check of applicants for licenses listed under subsection (a) of this section, of each member, partner, officer or director of such applicants, and of people with supervisory authority over the applicants, and require the fingerprints of such people as part of an application.
(d) Applications filed under subsection (a) of this section shall be filed with the National Mortgage Licensing System, which shall process the fingerprints through the Federal Bureau of Investigation.
(e) Provisions for disclosing records in the National Mortgage Licensing System of licensees in this state as defined under paragraph (a) of this Section may be disclosed as defined under [insert citation].
(f) Provisions for disclosing records under [insert citation] shall not apply to the disclosure of any record that is maintained by the [commissioner] with the National Mortgage Licensing System to any supervisory, governmental or law enforcement agency that is authorized to access such record on the System, provided such record shall remain the property of the [Department of Banking] and may not be further disclosed to any person without the consent of the [commissioner], or any record of a licensee that is maintained by the [commissioner] with such System to such licensee.
(g) No person may obtain information from the National Mortgage Licensing System that could not otherwise be obtained under state law.
(h) No information obtained from the National Mortgage Licensing System shall be admissible as evidence in, or used to initiate, a civil proceeding in this state unless such information would otherwise be admissible in such proceeding under state law.

Section 4. [Severability.] [Insert severability clause.]

Section 5. [Repealer.] [Insert repealer clause.]

Section 6. [Effective Date.] [Insert effective date.]

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