Idaho Code 26-31-207 – Revocation or Suspension of License
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(1) If the department has reason to believe that grounds exist for revocation or suspension of a license issued pursuant to this part, the department may initiate a contested case against a mortgage broker or mortgage lender and any partner, officer, director, manager, member, control person, employee or agent whose activities constitute the basis for revocation or suspension, in accordance with chapter 52, title 67, Idaho Code. The director may, after proceedings pursuant to chapter 52, title 67, Idaho Code, suspend the license for a period not to exceed six (6) months, or revoke the license, if he finds that:
(a) The licensee or any partner, officer, director, manager, member, control person, employee or agent of the licensee has violated this chapter or any rule promulgated or order issued under this chapter and pertinent to this part; or
(b) The licensee or any partner, officer, director, manager, member, control person, employee or agent of the licensee has violated any state or federal law, rule or regulation pertaining to mortgage brokering, mortgage lending, or mortgage loan origination activities; or
(c) Facts or conditions exist that would clearly have justified the director in refusing to grant a license had these facts or conditions been known to exist at the time the license was issued; or
(d) The licensee or any partner, officer, director, manager, member, control person, employee or agent of the licensee has been convicted of any felony, or of a misdemeanor involving any aspect of financial services, or a court has accepted a finding of guilt on the part of the licensee or partner, officer, director, manager, member, control person, employee or agent of the licensee of any felony, or of a misdemeanor involving any aspect of financial services; or
(e) The licensee or any partner, officer, director, manager, member, control person, employee or agent of the licensee has had a license to conduct financial services, including a license substantially equivalent to a license under this act, revoked or suspended by any government agency; or
(f) The licensee has filed an application for a license that as of the date the license was issued, or as of the date of an order denying, suspending or revoking a license, was incomplete in any material respect or contained any statement that was, in light of the circumstances under which it was made, false or misleading with respect to any material fact; or
(g) The mortgage broker or mortgage lender licensee has failed to notify the director of the employment or termination of, or the entering into or termination of a contractual relationship with, a licensed mortgage loan originator pursuant to section 26-31-208(2), Idaho Code; or
(h) The mortgage broker or mortgage lender licensee has failed to supervise diligently and control the mortgage-related activities of a mortgage loan originator as defined in part 3 of this chapter and that is employed by the licensee; or
(i) The licensee has failed to notify the director of the appointment or employment of a control person within thirty (30) days of such occurrence.
(2) If the director finds that good cause exists for revocation of a license issued under this part, and that enforcement of this chapter and the public interest require immediate suspension of the license pending investigation, he may, after a hearing upon five (5) days’ written notice, enter an order suspending the license for no more than thirty (30) days.
Terms Used In Idaho Code 26-31-207
- Agent: means a person who acts with the consent and on behalf of a licensee and is subject to the licensee's direct or indirect control and may include an independent contractor. See Idaho Code 26-31-201
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Control person: means a person who:
Idaho Code 26-31-102Department: means the department of finance of the state of Idaho. See Idaho Code 26-31-102 Director: means the director of the department of finance. See Idaho Code 26-31-102 Financial services: means any activity pertaining to securities, commodities, banking, insurance, consumer lending, money services businesses, consumer debt management, or real estate including, but not limited to, acting as or being associated with a bank or savings association, credit union, farm credit system institution, mortgage lender, mortgage broker, real estate salesperson or agent, appraiser, closing agent, title company, escrow agent, payday lender, money transmitter, check casher, pawnbroker, collection agent, debt management company, title lender, or credit repair organization. See Idaho Code 26-31-102 Licensee: means a person licensed pursuant to this chapter to engage in the activities regulated by this chapter. See Idaho Code 26-31-102 Mortgage: The written agreement pledging property to a creditor as collateral for a loan. Mortgage broker: means any nonexempt organization that performs the activities described in subsection (5) of this section, with respect to a residential mortgage loan. See Idaho Code 26-31-201 Mortgage lender: means any nonexempt organization that makes residential mortgage loans to borrowers and performs the activities described in subsection (7) of this section. See Idaho Code 26-31-201 Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC Person: means a natural person, corporation, company, limited liability company, partnership or association. See Idaho Code 26-31-102 State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
(3) Any mortgage broker or mortgage lender licensee may relinquish its license by notifying the department in writing of its relinquishment, but this relinquishment shall not affect its liability for acts previously committed and may not occur after the filing of a complaint for revocation of the license.
(4) The director may, in his discretion, reinstate a license issued under this part, terminate a suspension or grant a new license under this part to a person whose license issued under this part has been revoked or suspended, if no fact or condition then exists that clearly would justify the department in refusing to grant a license.