Disciplinary Action Flashcards
How often may the Director review, investigate, or examine a licensee?
As often as necessary
When a procedure exists for license surrenders, suspensions, or revocations, what must the Director’s notice include?
The action contemplated, the grounds for the action, & the date, time, and place for a hearing
After how long may the Director revoke or suspend a license if they determine that the license has failed to comply with the provisions?
After ten days notice
In emergency situations, how many days can the Director suspend a license?
Up to 30 days
If a mortgage loan originator wants to challenge the accuracy of information found, who must they notify?
File a written appeal with the Director
Within how many days of receipt of an appeal will the Director review and notify the licensee of their decision?
Within 30 days
If the licensee makes an appeal, who do they make it to?
The Residential Mortgage Board
Through who does the Director have power to ask the appropriate state court judge to issue an injunction?
The State Attorney General
In the case of an order of removal or prohibition, what is the time frame? What are the penalties?
The order can be permanent or temporary; restitution and a civil penalty not to exceed $25k
Can a person request a hearing in the case of a removal or prohibition?
Yes
What is the max civil fine?
$25k
What are the penalties for a Class A misdemeanor?
1yr Imprisonment and/or up to a fine of $1k
What are the penalties for a Class B misdemeanor?
6 month Imprisonment and/or fine up to $500
What are the penalties for a Class C felony (if they gained money or property through committing the violation)?
7yr imprisonment and/or a fine up to either $5k
What are the penalties for a Class C felony (a fine fixed by the court of up to double the amount of the offender’s gain from the act)?
imprisonment and/or a fine up to $20k
What is the charge if a person engages in business under any other name than their real name when conducting business? What would the charge be for subsequent violations?
Class A misdemeanor; Class C felony
What is the charge/penalty for a person who violates provisions of the law regarding proper licensure of residential mortgage brokers?
Class C felony and may be assessed a civil penalty of up to $25k
Any person who suffers any loss of money or property as a result of a violation of Chapter 408 may do what? What may they recover?
Bring an action to recover actual damages in a circuit court; recover punitive damages, attorney’s fees, and equitable relief
What is the charge if a contract evidences a fee/charge gained in exchange for arranging credit in the amount of $1k or less?
Class B misdemeanor
What is the charge if a person violates provisions of the law regarding max interest rates, prepayment fees, and second mortgage loans?
Class A misdemeanor
What is the charge if, when a person violates provisions of the law regarding max interest rates, prepayment fees, and second mortgage loans, but is found that the violation was an accident?
Class B misdemeanor
What is the charge for when a premium finance company violates provisions of the law governing premium finance companies?
Class A misdemeanor
What is the charge for a person who engages in the business of sales finance company without a license?
Class B misdemeanor
How many days can a seller holder correct a failure to comply with any provision with regard to a retail installment transaction?
30 days after the date of sale
If a borrower enters into a title loan agreement and the title lender does not have a valid license, what is the title loan agreement considered?
Null and void
What is the charge for a first offense of acting without a license under the title lender law? Subsequent offenses?
Class C misdemeanor; Class A misdemeanor
What is the charge when a loan broker charges an advance fee from a borrower in exchange for providing services as a loan broker?
Class A misdemeanor
What is considered mortgage fraud?
- employing a scheme to defraud
- make an untrue statement
- omit a material fact
- received any portion of the purchase, sale, loan proceeds,
- Influence through extortion or bribery
What is the charge for mortgage fraud? What are the penalties?
Class C felony; license revoked and civil penalties up to $2,500 per offense
Who is permitted by law to file a compliant with the Administrative Hearing Commission regarding any real estate licensee believed to have committed mortgage fraud?
The Real Estate Commission
