Substitute House Bill No. 5490, an Act Concerning Consumer Credit Licenses, proposes to make changes to the Banking Law in Connecticut that would expand the banking commissioner's existing authority in the mortgage arena to apply to other consumer credit license types and would standardize requirements across mortgage and non-mortgage license types. The bill also codifies existing orders of the Commissioner requiring use of the NMLS.
Among other things, the bill prohibits persons from conducting activity subject to licensure by the Commissioner at an office located outside the United States, requires designation of a qualifying individual and branch manager who is responsible for the actions of the licensee, and establishes advance change notice and approval requirements for any change of any control person.
As it relates specifically to mortgage, the bill:
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Requires the qualified individual and branch manager to demonstrate that they (1) live within 100 miles of the main or branch office, respectively, or (2) are otherwise capable of providing full-time, in-person supervision. It provides specified conditions that would permit waiver of this requirement (and certain other requirements).
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Requires mortgage loan originators to live within the 100 mile radius of the office unless able to demonstrate supervision by a qualified individual or branch manager;
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Makes changes to the duration of bona fide nonprofit organization exemptions from licensure and establishes certain examination and record-keeping requirements related thereto;
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Establishes a 15 day requirement for reportable events and expands the scope of reportable events;
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Makes changes to the scope of the Commissioner's remedies under the surety bond and makes technical changes to the statutes in the event electronic surety bonds are utilized;
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Requires the unique identifier for company licensees on all solicitations or advertisements, including business cards or website, and in all audio solicitations or advertisements, and requires the unique identifier of a licensed individuals on the same in certain circumstances; and
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Establishes a two-year record retention period for advertising.
