Iowa Administrative Code
Agency 187 - Banking Division
Chapter 19 - Mortgage Loan Originators
Rule 187-19.3 - Grounds for Denial of License
Universal Citation: IA Admin Code 187-19.3
Current through Register Vol. 47, No. 6, September 18, 2024
(1) The superintendent shall deny an application for a mortgage loan originator license if the applicant does not meet the qualifications outlined in Iowa Code section 535D.6. For the purpose of applying Iowa Code section 535D.6(2), "dishonesty or breach of trust" includes, but is not limited to, forgery, embezzlement, obtaining money under false pretenses, theft, extortion, fraud, conspiracy to defraud, tax evasion, or another similar offense.
(2) The superintendent may deny an application for a mortgage loan originator license for any of the following reasons:
a. This state or another state or
jurisdiction has denied, suspended, or refused to renew the applicant's license
to act as a mortgage loan originator or has denied, suspended, or refused to
renew a similar license or registration under this state's or the other state's
or jurisdiction's law. An agreement made between a person and this state or
another state or jurisdiction not to operate as a mortgage loan originator
shall be considered a denial of that person's license to act as a mortgage loan
originator in that state.
b. The
applicant has been barred, removed, or prohibited from serving in any capacity
in a financial institution by any state or federal regulatory agency, including
but not limited to the Office of Comptroller of the Currency, the Federal
Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal
Reserve System, or the U.S. Department of Housing and Urban
Development.
c. The applicant has
been convicted of forgery, embezzlement, obtaining money under false pretenses,
theft, extortion, conspiracy to defraud, tax evasion, or another similar
offense, in a court of competent jurisdiction in this state or in any other
state, territory or district of the United States, or in any foreign
jurisdiction. For the purposes of this paragraph, "convicted of" includes a
guilty plea, deferred judgment, deferred sentence, or other similar finding of
guilt by a court of competent jurisdiction.
d. The applicant has had a professional
license of any kind revoked in any state or jurisdiction. An agreement to
surrender a license and not to operate in an occupation in which a professional
license is required shall be considered a revocation for the purposes of this
rule.
e. The applicant is under 18
years of age.
f. The applicant has
made a false statement of material fact on an application for a license or has
been otherwise implicated in the submission of a false application.
g. The applicant has demonstrated a lack of
moral character in a manner that the superintendent reasonably believes will
impair the applicant's ability to act as a mortgage loan originator in full
compliance with the public interest and state policies described in Iowa Code
chapters 535B and 535D.
h. The
applicant has failed to pay child support and is identified in a certificate of
noncompliance from the child support recovery unit of the department of human
services according to the procedures in Iowa Code chapter 252J.
i. The applicant has failed to pay state debt
and is identified in a certificate of noncompliance from the department of
revenue according to the procedures set forth in Iowa Code chapter
272D.
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