(1) The director shall receive and act on all applications for licenses to do business as a mortgage broker or mortgage lender. Applications shall be filed through the NMLSR, or as otherwise prescribed by the director, shall contain such information as the director may reasonably require, shall be updated through the NMLSR, or as otherwise prescribed by the director, as necessary to keep the information current and shall be accompanied by a nonrefundable application fee of three hundred fifty dollars ($350).
(2) An application for license may be denied if the director finds that:
(a) The financial responsibility, character and fitness of the license applicant, or of the officers and directors thereof, if the applicant is a corporation, partners thereof if the applicant is a partnership, members or managers thereof if the applicant is a limited liability company and individuals designated in charge of the applicant’s places of business, or other control persons, are not such as to warrant belief that the business will be operated honestly and fairly within the purposes of this part;
(b) The applicant or any control person of the applicant has been convicted of or pled nolo contendere to any felony, or has been convicted of or pled nolo contendere to a misdemeanor involving any aspect of financial services, or a court has accepted a finding of guilt on the part of the applicant or any control person of the applicant of any felony, or of a misdemeanor involving any aspect of financial services, fraud, false statement or omission, any theft or wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion or conspiracy to commit any of these offenses;
(c) The applicant or any control person of the applicant has had a license to conduct financial services issued by a government agency revoked or suspended under the laws enforced by such agency;
(d) The applicant or any control person of the applicant has filed an application for a license which is false or misleading with respect to any material fact;
(e) The applicant or any partner, officer, director, manager, member, employee, agent or other control person of the applicant has violated this chapter or any rule promulgated or order issued under this chapter and pertinent to this part;
(f) The applicant or any partner, officer, director, manager, member, employee, agent or other control person of the applicant has violated any state or federal law, rule or regulation pertaining to financial services; or
(g) The applicant or any control person of the applicant has not provided information on the application as reasonably required by the director pursuant to subsection (1) of this section, or has provided materially false information.
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Terms Used In Idaho Code 26-31-206

  • 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
  • Control person: means a person who:
Idaho Code 26-31-102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Deficiency: means information contained in, or omitted from, an application for a mortgage broker, mortgage lender, or mortgage loan originator license that causes the application to be inaccurate, incomplete, or otherwise not in conformance with the provisions of this chapter, any rule promulgated or order issued under this chapter, application instructions published by the director or the provisions of the NMLSR policy guidebook. See Idaho Code 26-31-102
  • Director: means the director of the department of finance. See Idaho Code 26-31-102
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • 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
  • Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • 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 brokering activities: means , for compensation or gain or in the expectation of compensation or gain, either directly or indirectly, accepting or offering to accept an application for a residential mortgage loan, assisting or offering to assist in the preparation of an application for a residential mortgage loan on behalf of a borrower, negotiating or offering to negotiate the terms or conditions of a residential mortgage loan with any person making residential mortgage loans, or engaging in loan modification activities on behalf of a borrower. 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 lending activities: means , for compensation or gain or in the expectation of compensation or gain, either directly or indirectly, accepting or offering to accept applications for residential mortgage loans, or assisting or offering to assist in the preparation of an application for a residential mortgage loan, or servicing a residential mortgage loan on behalf of any person. See Idaho Code 26-31-201
  • NMLSR: means a mortgage licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the licensing and registration of mortgage brokers, mortgage lenders, and mortgage loan originators. See Idaho Code 26-31-102
  • Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means a natural person, corporation, company, limited liability company, partnership or association. See Idaho Code 26-31-102
  • Property: includes both real and personal property. See Idaho Code 73-114
  • 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) The director is empowered to conduct investigations, as he may deem necessary, to enable him to determine the existence of the requirements set out in subsection (2) of this section.
    (4) Upon written request to the director, an applicant is entitled to a hearing on the question of his qualifications for a license if:
    (a) The director has notified the applicant in writing that his application has been denied;
    (b) The director has not issued a license within sixty (60) days after receipt of a complete license application from an applicant. If a hearing is held, the applicant shall reimburse, pro rata, the director for his reasonable and necessary expenses incurred as a result of the hearing. A request for hearing may not be made more than fifteen (15) days after the director has mailed a writing to the applicant notifying him that the application has been denied and stating in substance the director’s finding supporting denial of the application.
    (5) A license application shall be deemed withdrawn and void if an applicant submits an incomplete license application and, after receipt of a written notice of the application deficiency, fails to provide the director with information necessary to complete the application within sixty (60) days of receipt of the deficiency notice. A written deficiency notice shall be deemed received by a license applicant when:
    (a) Placed in regular U.S. mail by the director or his agent using an address provided by the applicant on the license application; or
    (b) E-mailed to the applicant using an e-mail address provided by the applicant on the license application; or
    (c) Posted by the director or his agent on the NMLSR.
    (6) Every licensee under this part shall maintain a home office located in the United States and licensed under this part as the licensee’s principal location for the transaction of mortgage business. The director may, on application through the NMLSR, or as otherwise prescribed by the director, issue additional branch licenses to the same licensee upon compliance with all the provisions of this part governing the issuance of a single license. A separate license shall be required for each place of business from which mortgage brokering activities or mortgage lending activities are directly or indirectly conducted.
    (7) No licensee under this part shall change the location of any place of business, consolidate two (2) or more locations or close any home office location without giving the director at least fifteen (15) days’ prior written notice. A licensee under this part shall give written notice to the director within three (3) business days of the closure of any branch location licensed under this part. Written notice of the closure of a home or branch office location shall include a detailed explanation of the disposition of all loan applications pending at the time of closure of the licensed location.
    (8) No licensee under this part shall engage in the business of making or brokering residential mortgage loans at any place of business for which he does not hold a license nor shall he engage in business under any other name than that on the license.
    (9) The director may suspend action upon a mortgage broker or mortgage lender license application pending resolution of any criminal charges before any court of competent jurisdiction against an applicant which could disqualify that applicant if convicted.
    (10) The director may suspend action upon a mortgage broker or mortgage lender license application pending resolution of any civil action or administrative proceeding against an applicant in which the civil action or administrative proceeding involves any aspect of a financial service business and the outcome of which could disqualify the applicant.
    (11) A license applicant under this part shall make complete disclosure of all information required in the license application, including information concerning officers, directors, partners, members, managers, employees or agents. A license applicant, or person acting on behalf of the applicant, is not liable in any civil action other than a civil action brought by a governmental agency, related to an alleged untrue statement made pursuant to this part, unless it is shown by clear and convincing evidence that:
    (a) The license applicant, or person acting on behalf of the license applicant, knew at the time that the statement was made that it was false in any material respect; or
    (b) The license applicant, or person acting on behalf of the applicant, acted in reckless disregard as to the statement’s truth or falsity.
    (12) Notwithstanding any other provision of this part, an individual licensed under part 3 of this chapter may apply for a license under this section.