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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-C. BANKING AND FINANCIAL INSTITUTONS |
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Chapter 26-C11. MORTGAGE LENDERS, MORTGAGE BROKERS AND MORTGAGE LOAN ORIGINATORS |
Section 26-C1107. EVIDENCE OF FINANCIAL RESPONSIBILITY
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1107.1For purposes of this section, references in the Nationwide Mortgage Licensing System and Registry to the terms “net worth” and “capital” are interchangeable
1107.2A mortgage lender shall demonstrate and maintain capital of not less than two hundred thousand dollars ($200,000) per licensed location; a mortgage broker shall demonstrate and maintain capital of not less than twenty-five thousand dollars ($25,000) per licensed location. A mortgage dual authority licensee shall demonstrate and maintain capital of not less than two hundred and twenty-five thousand dollars ($225,000) per licensed dual authority location. Higher levels of capital may be required pursuant to section 1107.3.
1107.3Where the Commissioner reasonably determines, that the financial history or condition, managerial resources and/or active earnings prospects of a licensee are not adequate, or where a licensee has sizeable off-balance sheet or funding risks, excessive interest rate risk exposure, or a significant volume of classified or criticized assets, the Commissioner may prescribe a capital requirement for a licensee that is greater than the minimum.
1107.4The amount and time frames for attaining a higher level of capital prescribed under this section shall be set forth in either:
(a)A final report of examination approved by the Commissioner;
(b)A corporate resolution executed by the licensee and approved by the Commissioner;
(c)A written memorandum of understanding or other agreement between the licensee and the Commissioner; or
(d)As a provision in a temporary or permanent cease and desist order or other enforcement action issued by the Commissioner.
1107.5 The maintenance of the minimum capital standards specified under this section shall be a requirement for continued licensure under the Act. Failure to meet and maintain such minimum standards may constitute grounds for the issuance of a cease and desist order and may also constitute grounds for license suspension or revocation under the Act.
1107.6 Failure to meet the minimum capital standards under the Act may constitute grounds for the denial of an application, the issuance of a cease and desist order, license suspension, or license revocation.