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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-C1113. NOTIFICATION OF SIGNIFICANT EVENTS BY LICENSEE
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1113.1A mortgage lender, mortgage broker, mortgage dual authority licensee, or mortgage loan originator licensed under the Act shall notify the Commissioner in writing within five (5) business days of the occurrence of any fact or condition that exists that has a negative impact on the licensee’s financial condition and ability to maintain the financial requirements under section 1107 or to perform financial obligations to fund mortgage commitments which preclude the licensee from operating in a safe and sound manner consistent with the Act, these regulations and in the best interest of District of Columbia consumers.
1113.2A mortgage lender, mortgage broker, mortgage dual authority licensee, or mortgage loan originator licensed under the Act shall notify the Commissioner in writing within five (5) business days of the occurrence of any of the following significant developments:
(a)A charge of or conviction of any criminal felony offense;
(b)A charge of or conviction of any criminal misdemeanor offense involving financial services or a financial services related business; or any charge involving fraud, false statements or omissions, theft or wrongful taking of property, bribery, perjury, forgery, counterfeiting, or extortion;
(c)Receipt of notification of license denial, cease and desist order, initiation of suspension or revocation proceedings, issuance of formal orders of suspension or revocation or other imposed disciplinary action, or other formal or informal regulatory action, from any state or federal agency against the licensee, and the reasons thereof;
(d)Receipt of notification of the initiation of any action against the licensee by the District of Columbia Office of the Attorney General or of any other state or federal agency, pursuant to the Act, or any other comparable consumer protection statute, and the reasons thereof;
(e)Settlement or resolution of any civil action or proceeding against the licensee involving fraud, misrepresentation, or wrongful taking of property; or
(f)Filing of a bankruptcy petition by the licensee or being the subject of an involuntary bankruptcy petition.