Revision Note
Sections 454F-41 to 454F-47 designated as Part II pursuant to §23G-15.
§454F-41 Mortgage loan recovery fund; use of fund; fees. (a) The commissioner shall establish and maintain a fund that shall be known as the mortgage loan recovery fund from which any person aggrieved by an act, representation, transaction, or conduct of a licensee involving fraud, misrepresentation, or deceit may recover, by order of the circuit court or district court of the county where the violation occurred, an amount of ten per cent of the residential mortgage loan, but not more than $150,000, including court costs and fees as set by law and reasonable attorney fees as determined by the court, for damages sustained by the fraud, misrepresentation, or deceit of a licensee.
(b) In addition to application fees and any fees required by NMLS, a licensee shall pay to the division a mortgage loan recovery fund fee as follows for deposit in the mortgage loan recovery fund:
(1) The sum of $300 for each principal office location of a mortgage loan originator company;
(2) The sum of $250 for each branch office location of a mortgage loan originator company; and
(3) The sum of $200 for each mortgage loan originator.
(c) Upon application for renewal of a license under this chapter, a licensee shall pay, in addition to the licensee's license renewal fee and fees required by NMLS, a mortgage loan recovery fund fee as follows for deposit in the mortgage loan recovery fund:
(1) The sum of $200 for each principal office location of a mortgage loan originator company;
(2) The sum of $100 for each branch office location of a mortgage loan originator company; and
(3) The sum of $100 for each mortgage loan originator.
Mortgage loan recovery fund fees collected pursuant to this subsection shall be refundable upon the denial of a license renewal by the commissioner.
(d) When the mortgage loan recovery fund attains a funding level of $750,000, the commissioner may make a finding to adjust the fees payable to the fund or may determine that payments made by licensees shall cease. If acceptance of payments is ceased, it shall remain ceased until the funding level falls below $750,000. If the funding level falls below $250,000 after the first five years of the establishment of the fund, the commissioner may adjust the fees to a reasonable level for the purpose of attaining a funding level of $750,000.
(e) The commissioner or the commissioner's designee, as the manager of the mortgage loan recovery fund, shall be authorized to expend moneys in the mortgage loan recovery fund to:
(1) Retain private legal counsel to represent the commissioner or the division in any action that involves or may result in payment from the mortgage loan recovery fund;
(2) Retain a certified public accountant for accounting and auditing of the mortgage loan recovery fund;
(3) Employ necessary personnel, not subject to chapter 76, to assist the commissioner in exercising the commissioner's powers and duties with respect to the mortgage loan recovery fund; and
(4) Retain a consultant to recover and collect any payments from the mortgage loan recovery fund plus interest from the judgment debtor. [L 2010, c 84, pt of §3; am L 2013, c 168, §19; am L 2015, c 64, §2; am L 2016, c 122, §18; am L 2019, c 29, §9]