(1) With respect to mortgage companies, the board may deny an application for registration; refuse to renew, suspend, or revoke the registration; enter cease-and-desist orders; and impose fines as set forth in this section as follows:
If the board has reasonable cause to believe a person is acting without a license orregistration;
If the mortgage company fails to maintain possession, for future use or inspection byan authorized representative of the board, for a period of four years, of the documents or records prescribed by the rules of the board or to produce the documents or records upon reasonable request by the board or by an authorized representative of the board;
If the mortgage company employs or contracts with individuals who are required tobe licensed pursuant to this part 7 and who are not either:
Licensed; or
In the process of becoming licensed; or
(d) If the mortgage company directs, makes, or causes to be made, in any manner, a false or deceptive statement or representation with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan; engages in bait and switch advertising as that term is used in section 6-1-105 (1)(n); or violates any rule of the board that directly or indirectly addresses advertising requirements.
(2) (a) The board, upon its own motion or upon the complaint in writing of any person, may investigate the activities of any registered mortgage company or any mortgage company that is acting in a capacity that requires registration pursuant to this part 7.
(b) The board may fine a mortgage company that has violated this section or any rules promulgated pursuant to this section as follows:
In the first administrative proceeding, a fine not in excess of one thousand dollars peract or occurrence;
In a second or subsequent administrative proceeding, a fine not in excess of twothousand dollars per act or occurrence.
(c) All fines collected pursuant to this section shall be transmitted to the state treasurer, who shall credit them to the division of real estate cash fund created in section 12-10-215.
The board may adopt reasonable rules for implementing this section.
Nothing in this section automatically imputes a violation to the mortgage company ifa licensed agent or employee, or an individual agent or employee who is required to be licensed, violates any other provision of this part 7.
Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 702, § 1, effective October 1.
Editor's note: This section is similar to former § 12-61-905.1 as it existed prior to 2019.