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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 3464 By: Moore
AS INTRODUCED
An Act relating to professions and occupations;
amending 59 O.S. 2021, Sections 2095.2, 2095.3,
2095.5, 2095.6, 2095.7, 2095.8, 2095.9, 2095.10,
2095.11, 2095.11.1, 2095.12, 2095.12.1, 2095.13,
2095.14, 2095.18, 2095.20, 2095.21, 2095.22, 2095. 23,
2095.24, 2095.25, which relate to the Oklahoma Secure
and Fair Enforcement for Mortgage Licensing Act;
adding definitions; clarifying exemptions; changing
certain registry titles; adding mortgage lender
license and examination fee provisions; clarifying
internal references; modifying monetary damages
amounts; modifying examination fee provisions ;
creating remote working provision s for licensee
employees under certain conditions; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 59 O.S. 2 021, Section 2095.2, is
amended to read as follows:
Section 2095.2 As used in the Oklahoma Secure and Fair
Enforcement for Mortgage Licensing Ac t:
1. "Administrator" means the Administrator of Consumer Credit;
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2. "Affiliate" means an entity which directly or indirectly,
through one or more in termediaries, controls, is controlled by or is
under common control with the entity specified;
3. "Borrower" means any individual who consults with or retains
a mortgage broker or mortgag e loan originator in an effort to obtain
or seek advice or informati on on obtaining or applyin g to obtain or
modify a residential mortgage loan for himself, herself, or
individuals including himse lf or herself, regardless of whether the
individual actually obtains or modifies such a loan;
4. "Branch office" means any location, other than a mortgage
lender's or mortgage broker 's principal place of business or a
remote location, where the licensee o r its employees or independent
contractors maintain a physica l presence for the purpose of
conducting mortgage business ;
5. "Commission" means the Commission on Consumer Credit;
5. 6. "Compensation" means anything of value or any ben efit
including points, commissions, bonuses, referral fees and loan
origination fees;
6. 7. "Depository institution " has the same meaning as in
Section 3 of the Federal Deposit Insu rance Act and includes any
credit union;
7. 8. "Entity" means a corporation, company, limited liability
company, partnership or association;
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8. 9. "Federal banking agencies" means the Board of Governors
of the Federal Reserve System, the Comptroller of the cur rency, the
Director of the Office of Thrift Supervision, the National Cred it
Union Administration and the Federal Deposit Insurance Corporation;
9. 10. "Immediate family member" means a spouse, child,
sibling, parent, grandparent or grandchild and includes st epparents,
stepchildren, stepsiblings and adoptive relationships;
10. 11. "Individual" means a natural person and also includes a
sole proprietorship;
11. 12. a. "Loan processor or underwriter " means an entity
or individual who performs support duties as an
employee at the direction of an d subject to the
supervision and instructi on of an entity or individual
licensed or exempt from licensing as provided in
Section 2095.3 of this title.
b. For purposes of this parag raph, the term "clerical or
support duties" may include subsequent to the re ceipt
of an application, the receipt colle ction,
distribution and analysis of information necessary for
the processing or und erwriting or modification of a
loan, to the extent that such communication does not
include offering or n egotiating or modifying lo an
rates or terms, or counseling consumers about
residential mortgage loan rates or terms.
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c. An entity or individual engagin g solely in loan
processor or underwriter activities sh all not
represent to the public through advertisin g or other
means of communicating or providing information,
including the use of business cards, stationery,
brochures, signs, rate lists or other prom otional
items, that such entity or individual can or wi ll
perform any of the activities of a mortgage bro ker or
mortgage loan originator;
12. 13. a. "Mortgage broker" means an entity who for
compensation or gain or in the expectation of
compensation or gain:
(1) takes a residential mortgage loan application, or
(2) offers, negotiates or modifies the terms of a
residential mortgage loan , or
(3) services a residential mortgage loan.
b. Mortgage broker does not include:
(1) an entity engaged solely as a loan processor or
underwriter except as otherwise pro vided in
Section 2095.5 of this title,
(2) an entity that only performs real estate
brokerage activities an d is licensed or
registered in accordance with Oklahoma law,
unless the entity is compensated by a lender, a
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mortgage broker, or other mortgage loan
originator or by any agent of such lender,
mortgage broker or other mortgage loan
originator, and
(3) an entity solely involved in extensions of credit
relating to timeshare plans, as that term is
defined in 11 U.S.C., Section 101(53D) United
States Code;
13. 14. "Mortgage lender" means an entity that takes an
application for a residential mortgage loan, makes a r esidential
mortgage loan or services a residential mortgage loan and is an
approved or authorized:
a. mortgagee with direct endorsement underwritin g
authority granted by the United States Department of
Housing and Urban Development,
b. seller or servicer o f the Federal National Mortgage
Association or the Federal Home Loan Mortgage
Corporation, or
c. issuer for the Government National Mortgage
Association;
14. 15. a. "Mortgage loan originator " means an individual
who for compensation or gain or in the expectati on of
compensation or gain:
(1) takes a residential mortgage loan application, or
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(2) offers or negotiates or modifies the terms of a
residential mortgage loan.
b. Mortgage loan originator does not include:
(1) an individual engaged solely as a loan proces sor
or underwriter except as otherwise provided in
Section 2095.5 of this title,
(2) an individual that only performs real estate
brokerage activities and is licensed or
registered in accordance with Oklahoma law,
unless the individual is compensated by a lender,
a mortgage broker, or other mortgage loan
originator or by any agent of such lender,
mortgage broker, or other mortgage loan
originator, and
(3) an individual solely involved in extensions of
credit relating to timeshare plans, as that term
is defined in 11 U.S.C., Section 101(53D);
15. 16. "Nationwide Mortgage Multistate Licensing System and
Registry" means a mortgage licensing system develop ed and maintained
by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulat ors for the licensing and
registration of licensed mortgage brokers and mortgage loan
originators;
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16. 17. "Nontraditional mortgage p roduct" means any mortgage
product other than a thirty -year fixed rate mortgage;
17. 18. "Real estate brokerage activity " means any activity
that involves offering or providing real estate brokerage services
to the public, including:
a. acting as a real estate agent or real estate broker
for a buyer, seller, lessor or lessee of real
property,
b. bringing together parties int erested in the sale,
purchase, lease, rental or exchange of real property,
c. negotiating, on behalf of any party, any portion of a
contract relating to the sale, purchase, lease, rental
or exchange of real property, other than in connection
with providing financing with respect to any suc h
transaction,
d. engaging in any activity for which an entity engaged
in the activity is required t o be registered or
licensed as a real estate agent or real estate broker
under any applicable law, and
e. offering to engage in any activity or act in any
capacity, described in this paragraph;
18. 19. "Registered mortgage loan originator " means any
individual who:
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a. meets the definition of mortgage loan originator and
is an employee of:
(1) a depository institution,
(2) a subsidiary that:
(a) is owned and controlled by a depository
institution, and
(b) is regulated by a federal banking agency, or
(3) an institution regulated by the Farm Credit
Administration, and
b. is registered with and maintains a unique identifier
through, the Nationwide Mortgage Multistate Licensing
System and Registry;
20. "Remote location" means a location, other than the
principal place of business or a br anch office, at which the
employees or independent contractors of a licensee may conduct
mortgage business. Licensable activities from a remote location
shall be permitted when conducted under the supervision of the
licensee and when all requirements in S ection 22 of this act are
satisfied;
19. 21. "Residential mortgage loan " means any loan primarily
for personal, family or household use that is secured by a mortgage,
deed of trust, or other equivalent consensual security intere st on a
dwelling as defined in Section 103(v) of the Truth in Lending Act or
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residential real estate upon which is c onstructed or intended to be
constructed such a dwelling;
20. 22. "Residential real estate " means any real property
located in this state u pon which is constructed or intended to be
constructed a dwelling as defined in paragraph 21 of this section;
and
23. "Servicing" means the administration of a residential
mortgage loan following the closing of such a loan. An entity shall
be deemed to be servicing if they either hold the servicing rights,
or engage in any activities determined to be servicing, includi ng:
a. collection of monthly mortgage payments ,
b. the administration of escrow accounts ,
c. the processing of borrower inquiries and reque sts, and
d. default management; and
21. 24. "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage
Multistate Licensing System and Registry.
SECTION 2. AMENDATORY 59 O.S. 2021, Section 2095.3 , is
amended to read as follows:
Section 2095.3 The following are exempt from all provisions of
the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act:
1. Registered mortgage loan originators, when acting for an
entity described in divisions (1), (2) and (3) of su bparagraph a of
paragraph 18 19 of Section 2095.2 of this title;
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2. An individual who offers or negotiates or modifies terms of
a residential mortgage loan with or on behalf of an immediate family
member of the individual;
3. An individual who offers or neg otiates or modifies terms of
a residential mortgage loan secured by a dwelling that served as the
individual's residence;
4. A licensed attorney who negotiates or modifies the terms of
a residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client, unless the
attorney is compensated by a lender, a mortgage broker or other
mortgage loan originator or by any agent of such lender, mortgage
broker, or other mortgage loan originator;
5. Entities describ ed in divisions (1), (2) and (3) of
subparagraph a of paragraph 18 19 of Section 2095.2 of this title;
or
6. Any entity that is an organization recognized by the
Internal Revenue Service as a 501(c)(3) charitable entity that meets
the conditions set forth in (B) through (F) of subparagraph (ii),
paragraph (7), subsection ( e) of Section 1008.103 of Title 12 of the
Code of Federal Regulations.
SECTION 3. AMENDATORY 59 O.S. 2021, Sectio n 2095.5, is
amended to read as follows:
Section 2095.5 A. 1. An entity or individual, unless
specifically exempte d from the Oklahoma Secure and Fair Enforcement
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for Mortgage Licensing Act, as provided i n Section 2095.3 of this
title, shall not engage i n the business of a mortgage broker,
mortgage lender or mortgage loan originator with respect to any
dwelling located in this state without first obtaining and
maintaining annually a license under the Oklah oma Secure and Fair
Enforcement for Mortgage Licen sing Act. Each licensed mortgage
broker, mortgage lender and mortgage loan originator must register
with and maintain a valid unique identifier issued by the Nationwide
Mortgage Multistate Licensing System and Registry.
2. In order to facilitate an order ly transition to licensing
and minimize disruption in the mortgage marketplace, the effective
date for licensing all entities and individuals as provided in this
subsection, including those currently licens ed as mortgage brokers
or mortgage loan originator s, shall be July 31, 2010, or such later
date approved by the Secretary of the U.S. Department of Housing and
Urban Development, pursuant to the authority granted under 12
U.S.C., Section 5107.
B. A loan processor or underwriter who is an independent
contractor may not engage in the activities of a loan processor or
underwriter unless such independent contractor loan pr ocessor or
underwriter obtains and maintains a license as required by the
Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act.
Each independent contractor loan processor or underwriter licensed
as a mortgage broker or mortgage loan originator must have and
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maintain a valid unique identifier issued by the Nationwide Mortgage
Multistate Licensing System and R egistry.
C. For the purposes of implementing an orderly and efficient
licensing process, the Administrator of Consumer Credit may
establish licensing rules, upon approval by the Commission, and the
Administrator may establish in terim procedures for licens ing and
acceptance of applications. For previously registered or licensed
entities or individuals, the Administrator may establish expedite d
review and licensing procedures.
SECTION 4. AMENDATORY 59 O.S. 2021, Section 2095.6, is
amended to read as foll ows:
Section 2095.6 A. Applicants for a license shall apply on a
form as prescribed by the Administrator of Consumer Credit.
B. In order to fulfill the purposes of the Oklahoma Secure and
Fair Enforcement for Mortgage Licensing Act, the Administrator is
authorized to establish relationships or contracts with the
Nationwide Mortgage Multistate Licensing System and Regi stry or
other entities designated by the Nationwide Mortgage Multistate
Licensing System and Registry to coll ect and maintain records and
process transaction fees or other fees related to licensees or other
entities or individuals subject to the Oklahoma S ecure and Fair
Enforcement for Mortgage Licensing Act.
C. In connection with an application for licensing as a
mortgage loan originator, t he applicant shall, at a minimum, furnish
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to the Nationwide Mortgage Multistate Licensing System and Registry
information concerning the applicant's identity including:
1. Fingerprints for submission to the Federal Bureau of
Investigation and any governmental agency or entity authorized to
receive such information for a state, national and international
criminal history background check; and
2. Personal history and experience in a form prescribed by the
Nationwide Mortgage Multistate Licensing System and Registry and the
Administrator to obtain:
a. an independent credit report obtained from a consumer
reporting agency defined in 15 U.S.C., Section
1681a(p), and
b. information related to any administrative, civil or
criminal findings by any governmental jurisdiction.
D. In connection with an application for licensing as a
mortgage broker or mortgage lender, the applicant shall, at a
minimum, furnish to the Nationwide Mortgage Multistate Licensing
System and Registry information con cerning each owner, office r,
director or partner, as applicable including:
1. Fingerprints for submission to the Federal Bureau of
Investigation and any governmental agency or entity authorized to
receive such information for a state, national and interna tional
criminal history background check; and
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2. Personal history and experience in a form prescribed by the
Nationwide Mortgage Multistate Licensing System and Registry and the
Administrator to obtain:
a. an independent credit report obtained from a cons umer
reporting agency desc ribed in 15 U.S.C., Section
1681a(p), and
b. information related to any administrative, civil or
criminal findings by any governmental jurisdiction.
E. For purposes of this section and in order to reduce points
of contact which the Federal Bureau of Inves tigation may have to
maintain for purposes of pa ragraph 1 and subparagraph b of paragraph
2 of subsection D of this s ection, the Administrator may use the
Nationwide Mortgage Multistate Licensing System and Registry as a
channeling agent for requesting inf ormation from and distrib uting
information to the Departmen t of Justice or any governmental agency.
F. For the purposes of this section and in order to reduce the
points of contact which the Administrator may have to maintain for
purposes of subparagraphs a and b of paragraph 2 o f subsection D of
this section, the Administrator may use the Nationwide Mortgage
Multistate Licensing System and Registry as a channeling agent for
requesting and distributing information to and from any source so
directed by the Administrator.
G. A license issued under the Oklahoma Secure and Fair
Enforcement for Mortgage Licensing Act shall be valid for a period
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of one (1) year, unless otherwise revoked or suspended by the
Administrator as provided in the Oklahoma Secure and Fai r
Enforcement for Mortgage Licensing Act.
H. The Administrator, on de termining that the applicant is
qualified and upon payment of the fees by the applicant, shall issue
a license to the applicant. An applicant who has been den ied a
license may not reapp ly for the license for sixty (60) da ys from the
date of the previous a pplication. A new license issued on or after
November 1 shall be effective through December 31 of the following
calendar year.
I. A licensee shall pay the re newal fee on or before Dece mber
1. If the license is not renew ed by December 1, the licensee sha ll
pay a late renewal fee as prescribed by rul e of the Commission on
Consumer Credit. Licenses not renewed by December 31 shall expire
and the licensee shall not act as a mortgage broke r, mortgage lender
or mortgage loan originator until a new license is issued pursuant
to the Oklahoma Secure and Fai r Enforcement for Mortgage Licensing
Act. A license shall not be granted to the holder of an expired
license except as provided in the Okla homa Secure and Fair
Enforcement for Mortgage Licensing Act for the is suance of an
original license.
J. A licensee shall prominently display the mortgage broker,
mortgage lender or mortgage loan originator license in the office
principal place of business of the mortgage broker, mortgage lender
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or mortgage loan origin ator and any branch office of the mortgage
broker or mortgage lender.
K. 1. Initial and renewal license fees shall be as prescribed
by rule of the Commission on Co nsumer Credit An applicant for a
Mortgage Broker or Mortgage Lender license shall pay a fee of Five
Thousand Dollars ($5,000.00). This fee shall cover the application
fee and examination fee for all registered locations, including any
changes of address.
2. Mortgage Broker or Mort gage Lender licenses may be renewed
by submitting an annual assessment fee. The annual assessment fee
shall:
a. be based on the dollar volume of loans originated for
residential real property located in Oklahoma during
the twelve-month period ending on Jun e 30,
b. be based on the dollar volume of loans serviced for
residential real property located in Oklahoma as
reported on the Q2 mortgage call report for period
ending on June 30,
c. be determined by applying a factor of one h undredth of
one percent (0.01%) to the dollar volume of loans
originated and the dollar volume of loans serviced in
Oklahoma, and
d. cover:
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(1) the renewal fee for the principal office and any
branches,
(2) any examination-related costs incurred by the
Department.
3. Beginning November 1, 2024, the annual assessment fee shall
not be:
a. less than One Thousand Dollars ($1,000.00), or
b. more than Seventy-five Thousand Dollars ($75,000.00)
for the portion of the assessment calculated according
to subparagraph a of par agraph 2 of subsecti on K of
this section, and
c. more than Fifteen Thousand Dollars ( $15,000.00) for
the portion of the assessment calculated according to
subparagraph b of paragraph 2 of subsection K of this
section.
4. Beginning November 1, 2025, the ann ual assessment fee shall
not be:
a. less than One Thousand Dollars ( $1,000.00), or
b. more than Fifty-five Thousand Dollars ( $55,000.00) for
the portion of the assessment calculated according to
subparagraph a of paragraph 2 of subsection K of this
section, and
c. more than Twenty-five Thousand Dollars ( $25,000.00)
for the portion of the assessment calculated according
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to subparagraph b of paragraph 2 of subsection K of
this section.
5. Beginning November 1, 2026 and thereafter, the annual
assessment fee shall not be:
a. Less than One Thousand Dollars ( $1,000.00), or
b. more than Fifty Thousand Dollars ( $50,000.00) for the
portion of the assessment ca lculated according to
subparagraph a of paragraph 2 of subsection K of this
section, and
c. more than Thirty-seven Thousand Five Hundred Dollars
($37,500.00) for the portion of the assessment
calculated according to subparagraph b of paragraph 2
of subsection K of this section.
2. 6. A late renewal fee shall be as prescribed by rule of the
Commission on Consumer Credit.
3. 7. Branch office fees offices shall be as prescribed by rule
of the Commission on Consumer Credit for each year be registered
with the Department and shall be accompanied by an initial
registration fee of One Hundred Fifty Dollars ($150.00).
4. 8. A fee as prescribed by rule of the Commission on Consumer
Credit shall be charged for each license change, duplicate license
or returned check.
5. 9. A fee as prescribed by rule of the Commission on Consumer
Credit shall be paid by applicants and licensees into the O klahoma
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Mortgage Broker and Mortgage Loan Originator Recovery Fund as
provided for in Section 2095.20 of this title for e ach initial
application and each renewal application.
6. An examination fee shall be as prescribed by rule of the
Commission on Consum er Credit 10. Each additional trade name used
by a licensee shall be registered with the Departmen t and shall be
accompanied by an initial registration fee of One Hundred Fifty
Dollars ($150.00).
7. An application fee shall be as prescribed by rule of th e
Commission on Consumer Credit 11. The Administrator may reinstate a
license within thirty -one (31) days of the expiration of t he license
if the licensee pays the assessment fee and a reinstatement fee of
Five Hundred Dollars ($500.00). A licensee shall not be reinstated
when the renewal application, fees, or any required information is
received on or after February 1 of the foll owing year that the
renewal application was due.
12. The Administrator of Consumer Credit may reduce annual
assessment fees on a pro rata basis for a specific renewal period by
reducing the factor applied to the dollar volume of loans originated
and serviced. The Administrator shall notify licensees of an annual
assessment fee reduction prior to November 1 of the specific licens e
renewal period. An annual assessment fee does not include an
initial license fee for purpose s of this subsection .
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L. 1. An applicant for an initial mortgage loan originator
license shall pay a fee of Four Hundred Fifty Dollars ($450.00).
2. An applicant renewing a mortgage loan originator license
shall pay a fee of Two Hundred Fifty Dollars ($250.00).
3. A late renewal fee sh all be as prescribed by rule of the
Commission on Consumer Credit.
4. A fee as prescribed by rule of the Commission on Consume r
Credit shall be paid by applicants and licensees into the Oklahoma
Mortgage Broker and Mortgage Loan Originator Recovery Fund as
provided for in Section 2095.20 of this title for each initial
application and each renewal application .
SECTION 5. AMENDATORY 59 O.S. 2021, Section 2095.7, is
amended to read as fo llows:
Section 2095.7 A. The Administrator of Consumer Credit shall
not issue a mortgage loan originator license unless the
Administrator makes at a minimu m the following findings:
1. The applicant has never had a mortgage loan originator
license revoked in any governmental jurisdiction, except that a
subsequent formal vacation of such revocation shall not be deemed a
revocation;
2. The applicant has not b een convicted of, or pled guilty or
nolo contendere to a felony crime that substantially relates to the
occupation of a mortgage loan originator a nd poses a reasonable
threat to public safety in a domestic, foreign or military court:
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a. during the seven-year period preceding the date of the
application for licensing and registration, or
b. at any time preceding such date of application, if
such felony involved an act of fraud, dishonesty, a
breach of trust or money laundering.
Provided, that any pardon of a conviction shall not be a
conviction for purposes of this paragraph;
3. The applicant has demonstrated financial responsibility and
general fitness such as to command the confidence of the community
and to warrant a determination that the mortgage loan o riginator
will operate honestly, fairly and efficiently within the purposes of
the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act .
For purposes of this paragraph, an individual has shown that he or
she is not financially responsible when he or she has shown a
disregard in the management of his or her own financial condition.
A determination that an individual has not shown financi al
responsibility may include, but not be limited to:
a. current outstanding judgments, except judgments solel y
as a result of medical expenses,
b. current outstanding tax liens or other government
liens and filings,
c. foreclosures within the past three ( 3) years, or
d. pattern of seriously delinquent accounts within the
past three (3) years;
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4. The applicant ha s completed the prelicensing education
requirement described in Section 2095.8 of this title;
5. The applicant has passed a written test that mee ts the test
requirement described in Section 2095.9 of this title;
6. The applicant has paid into the Oklahom a Mortgage Broker and
Mortgage Loan Originator Recovery Fund as required by paragraph 5 7
of subsection K of Section 2095.6 of this title; and
7. The applicant is sponsored by a licensed mortgage broker or
mortgage lender. The Administrator of Consumer C redit may authorize
an entity exempt from the requirements of this act to sponsor an
applicant that is an independent contractor of the exempt ent ity.
The Administrator of Consumer Credit may promulgate administrative
rules, subject to approval of the Com mission on Consumer Credit, to
implement sponsorship procedures and requirements.
B. As used in this section:
1. "Substantially relates " means the nature of criminal conduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duties or
responsibilities necessarily related to the occupation; and
2. "Poses a reasonable threat " means the nature of criminal
conduct for which the person was convicted involved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupation.
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SECTION 6. AMENDATORY 59 O.S. 2021, Section 2095.8, is
amended to read as follows:
Section 2095.8 A. In order to meet the prelicensing education
requirement referred to in Section 2095.7 of this title, an
individual shall complete at least twenty (20) hours of education
approved in accordance with subsection B of this section, which
shall include at least:
1. Three (3) hours of federal law and regulations;
2. Three (3) hours of ethics, which shall include instruction
on fraud, consumer protection and fair lending issues ;
3. Two (2) hours of training related to lending standards for
the nontraditional mortgage produ ct marketplace; and
4. One (1) hour of Oklahoma law and regulations.
B. For purposes of subsection A of this section, prelicensing
education courses shall b e reviewed and approved by the Nationwide
Mortgage Multistate Licensing System and Registry based upon
reasonable standards. R eview and approval of a prelicensing
education course shall include review and approval of the course
provider.
C. Nothing in this section shall preclude any prelicensing
education course as approved by the Nationwide Mortgage Multistate
Licensing System and Registry that is provided by the employer of
the applicant or an entity which is affiliated with the applicant by
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an agency contract or any subsidiary or affiliate of such employer
or entity.
D. Prelicensing education may be offered either in a classr oom,
online or by any other means approved by the Nationwide Mortgage
Multistate Licensing System and Registry.
E. The prelicensing education requirements approved by the
Nationwide Mortgage Multistate Licensing System and Reg istry in
paragraph 1 of subse ction A and subsections B and C of this section
for any state shall be accepted as credit towards completion of
prelicensing education requirements in this state.
F. An individual previously licensed pursuant to the Oklahoma
Secure and Fair Enforcement for Mortgage Licensing Act, subsequent
to July 1, 2009, and applying to be licensed again, must prove
completion of all of the cont inuing education requirements for the
year in which the li cense was last held.
SECTION 7. AMENDATORY 59 O.S. 2021, Section 2095.9, is
amended to read as follows:
Section 2095.9 A. In order to meet the written test
requirement referred to in Section 10 2095.7 of this act title, an
individual shall pass, in accordance with standards established
under this section, a qualified written test developed by th e
Nationwide Mortgage Multistate Licensing System and Registry and
administered by a test provider approved by the Nationwide Mortgage
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Multistate Licensing System and Registry based upon reasonable
standards.
B. A written test shall not be treated as a qualified written
test for purposes of subsectio n A of this section unless the te st
adequately measures the applicant's knowledge and comprehension in
appropriate subject areas, including:
1. Ethics;
2. Federal law and regulations pertaining to mortgage
origination;
3. State law and regulation pertai ning to mortgage origination;
and
4. Federal and state law and regulation, including instruction
on fraud, consumer protection, the nontraditional mortgage
marketplace and fair lending issues.
C. Nothing in this section shall pro hibit a test provider
approved by the Nationwide Mortgage Multistate Licensing System and
Registry from providing a test at the location of the employer of
the applicant or the location of any subsidiary or affiliate of the
employer of the applicant or the location of any entity with which
the applicant holds an exclusive arrangement to conduct the business
of a mortgage loan originator.
D. 1. An individual shall not be considered to h ave passed a
qualified written test unless the individual achieves a tes t score
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of not less than seventy-five percent (75%) corre ct answers to
questions.
2. An individual may retake a test three consecutive times with
each consecutive taking occurring at least thirty (30) days after
the preceding test.
3. After failing three consecutive tests, an individual shall
wait at least six (6) months before taking the test again.
4. A licensed mortgage loan originator who fails to maintain an
active and valid lic ense for a period of five (5) years or longer
shall retake the test, not taking into account any time during which
such individual is a registered mortgage loan originator.
SECTION 8. AMENDATORY 59 O.S. 2021, Section 2095.10, is
amended to read as follows:
Section 2095.10 A. The minimum standards for license renewal
for mortgage loan originators shall inc lude the following:
1. The mortgage loan originator continue s to meet the minimum
standards for license issuance under Section 10 2095.7 of this act
title;
2. The mortgage loan originator has satisfied the annual
continuing education requirements describ ed in Section 24 2095.21 of
this act title; and
3. The mortgage loan originator has paid all required fees fo r
renewal of the license.
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B. The license of a mortgage loan originator failing to satisfy
the minimum standards for license renewal shall expire. The
Administrator of Consumer Credit may adopt procedures i n addition to
the requirements of Section 9 2095.6 of this act title for the
reinstatement of expired licenses consistent with the standards
established by the Nationwide Mortgage Multistate Licensing System
and Registry.
SECTION 9. AMENDATORY 59 O.S. 2021, Section 2095.11, is
amended to read as follows:
Section 2095.11 A. The Administrator of Consumer Credit shall
not issue a mortgage broke r license unless the Administ rator makes
at a minimum the following findings:
1. The applicant or any owner, officer, director or partner has
never had a mortgage broker or mortgage loan origin ator license
revoked in any governmental jurisdiction, except that a subsequent
formal vacation of such revocation shall not be deemed a revocation;
2. Any owner, officer, director or partner of the applicant has
not been convicted of, or pled guilty or n olo contendere to, a
felony crime that substantially relates t o the occupation of a
mortgage broker and poses a reasonable threat to public safety in a
domestic, foreign or military court:
a. during the seven-year period preceding the date of the
application for licensing and registration, or
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b. at any time preceding such date of application, if
such felony involved an act of fraud, dishonesty, a
breach of trust or money laundering.
Provided, that any pardon of a convic tion shall not be a
conviction for purposes of this paragraph;
3. The applicant's owners, officers, directors or partners have
demonstrated financial responsibility and general fitness such as to
command the confidence of the community and to warrant a
determination that the mortgage broker w ill operate honestly, fairly
and efficiently within the purpos es of this act. For purposes of
this paragraph, an applicant's owners, officers, directors or
partners have shown they are not financially responsible when they
have shown a disregard in the ma nagement of their own financial
condition. A determination th at an owner, officer, directo r or
partner has not shown financial responsibility may include, but not
be limited to:
a. current outstanding judgments, excep t judgments solely
as a result of medical expenses,
b. current outstanding tax liens or other govern ment
liens and filings,
c. foreclosures within the past three (3) years, or
d. a pattern of seriously delinquent accounts within the
past three (3) years;
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4. The applicant has paid into the Okl ahoma Mortgage Broker and
Mortgage Loan Originator Recovery Fu nd as required by paragraph 5 7
of subsection K of Section 2095.6 of this title; and
5. The applicant has paid all required fees for issuance of the
license.
B. Each mortgage broker applicant shall designate and maintain
a principal place of business for the transaction of business. The
applicant shall specify the address of the principal place of
business and designate a licensed mortgage loan originator to
oversee the operations of the princ ipal place of business. If an
applicant wishes to maintain on e or more locations branch offices
for the transaction of business in addition to a principa l place of
business, the applicant shall first obtain a register the branch
office license from location with the Administrator and designate a
licensed mortgage lo an originator for each branch office to oversee
the operations of that branch office. The applicant shall submit a
fee as set forth in paragraph 3 5 of subsection K of Section 2095.6
of this title for each branch office license issued. If the
Administrator of Consumer Credit determi nes that the applicant is
qualified, the Administrator shall issue a branch office license
indicating the address of the branch office registered. If the
address of the principal place of business or of any branch office
is changed, the licensee shall imm ediately notify the Administrator
of the change and the Administrator s hall endorse the change of
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address on the license for a fee as prescribed in paragraph 4 6 of
subsection K of Section 2095.6 of this title.
C. As used in this section:
1. "Substantially relates" means the nature of criminal conduct
for which the person was convicted has a direct bearing on the
fitness or ability to perform one or more of the duti es or
responsibilities necessarily related to the occupation; and
2. "Poses a reasonable t hreat" means the nature of criminal
conduct for which the person was conv icted involved an act or threat
of harm against another and has a bearing on the fitness or ability
to serve the public or work with others in the occupat ion.
SECTION 10. AMENDATORY 59 O.S. 2021, Section 2095.1 1.1,
is amended to read as follows:
Section 2095.11.1 The Administrator of Consumer Credit shall
not issue a mortgage lender license unless the Administrator makes
at a minimum the following findings:
1. The applicant or any owner, officer, director or partner has
never had a mortgage lender, mortgage broker or mortgage loan
originator license revoked in any governmental jurisdiction, except
that a subsequent formal vacation of such revocation shall not be
deemed a revocation;
2. Any owner, officer, director or partner of the applicant has
not been convicted of, or pled guilty or nolo contendere to, a
felony crime that substantially relates to the occupation of a
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mortgage lender and poses a reasonable th reat to public safety in a
domestic, foreign or military court:
a. during the seven-year period preceding the date of the
application for licensing and registration, or
b. at any time preceding such date of application, if
such felony involved an act of fr aud, dishonesty, a
breach of trust or money laundering.
Provided, that any pardon of a conviction shall not be a
conviction for purposes of this paragraph;
3. The applicant and the applicant 's owners, officers,
directors or partners have demonstrated fina ncial responsibility and
general fitness such as to command the confidence of the community
and to warrant a determination that the mortgage lender will operate
honestly, fairly and efficiently within the purposes of this act.
For purposes of this paragra ph, an applicant's owners, officers,
directors or partners have shown they are not financially
responsible when they have shown a disregard in the management of
their own financial condition. A determination that an owner,
officer, director or partner has not shown financial responsibility
may include, but not be limited to:
a. current outstanding judgments, except judgments sole ly
as a result of medical expenses,
b. current outstanding tax liens or other government
liens and filings,
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c. foreclosures within the past three (3) years, or
d. a pattern of seriously delinquent accounts within the
past three (3) years;
4. The applicant has filed a bond in the amount of One Hundred
Thousand Dollars ($100,000.00) securing the applicant 's or
licensee's faithful performance of all duties and obligations of a
licensee. The bond shall meet the following requirements:
a. the bond shall be in a form acceptable to the
Administrator,
b. the bond shall be issued by an insurance company
authorized to conduct business in the State of
Oklahoma,
c. the bond shall be payable to the Oklahoma Department
of Consumer Credit,
d. the bond is continuous in na ture and shall be
maintained at all times as a condition of licensure,
e. the bond may not be terminat ed without thirty (30)
days prior written notice to the Administrator and
approval of the Administrator,
f. the bond shall be available for the recovery o f
expenses, civil penalties and fees assessed pursuant
to the Oklahoma Secure and Fair Enforcement for
Mortgage Licensing Act and for losses or damages which
are determined by the Administrator to have been
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incurred by any borrower or consumer as a result of
the applicant's or licensee's failure to comply with
the requirements of the Oklahoma Secure and Fa ir
Enforcement for Mortgage Licensing Act,
g. when an action is commenced on a licensee 's bond, the
Administrator may require the filing of a new bond,
and
h. whenever the principal sum of the bond is reduced by
one or more recoveries or payments thereon, the
licensee shall furnish a new or additional bond so
that the total or aggregate principal sum of such bond
or such bonds shall equal One Hundred Thousa nd Dollars
($100,000.00) or shall furnish an endorsement duly
executed by the corporate surety reinsta ting the bond
to the required principal sum;
5. The applicant has a net worth of at least Twenty -five
Thousand Dollars ($25,000.00) as reflected by an au dited financial
statement prepared by a certified public accountant in accordance
with generally accep ted accounting principles t hat is accompanied by
an opinion acceptable to the Administrator and is dated within
fifteen (15) months of the date of applica tion;
6. The applicant has paid all required fees for issuance of the
license. The license fees for a mortgage lender shall be in the
same amount as license fees applicable to a mortgage broker;
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7. Each mortgage lender applicant shall designate and main tain
a principal place of business for the transaction of business. If
the mortgage lender applicant engages in activity that sa tisfies the
definition of a mortgage broker, the mortgage lender shall designate
a licensed mortgage loan originator to oversee the mortgage loan
origination operations of the principal place of business and any
branch office location where the mortgage le nder applicant engages
in activity that satisfies the definition of a mortgage broker. If
an applicant wishes to maintain one or more locations branch offices
for the transaction of business in addition to a principal place of
business, the applicant shal l first obtain a register the branch
office license from location with the Administrator. The applicant
shall submit a fee as set forth in paragraph 3 5 of subsection K of
Section 2095.6 of this title for each branch office license issued.
If the Administrator of Consumer Credit determines that the
applicant is qualified, the Administrator shall issue a branch
office license indicating the address of the branch offic e
registered. If the address of the principal place of busines s or of
any branch office is changed, the licensee shall immediately notify
the Administrator of the change and the Administrator shall endorse
the change of address on the license for a fee as prescribed in
paragraph 4 6 of subsection K of Section 2095.6 of this title; and
8. A separate mortgage broker license is not required for a
mortgage lender that engages in a ctivity that satisfies the
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definition of a mortgage broker as provided in the Oklahoma Secure
and Fair Enforcement for Mortgage Licensing Act. A mortgage lender
that engages in activity that satisfies the definition of a mortgage
broker shall comply with all requirements of the Oklahoma Secure a nd
Fair Enforcement for Mortgage Licensing Act regar ding mortgage
brokers.
SECTION 11. AMENDATORY 59 O.S . 2021, Section 2095.12, is
amended to read as follows:
Section 2095.12 A. The minimum standards for license renewal
for mortgage brokers shall include the following:
1. The mortgage broker continues to meet the minimum standards
for license issuance un der Section 14 2095.11 of this act title; and
2. The mortgage broker has paid all required fees for renewal
of the license.
B. The license of a mortgage broker failing to satisfy the
minimum standards for license renewal shall expire. The
Administrator of Consumer Credit may adopt procedures in addition to
the requirements of Section paragraph 9 of this act subsection K of
Section 2095.6 of this title for the reinstatement of expired
licenses consistent with the standards established by the Nationwide
Mortgage Multistate Licensing System and Registry.
SECTION 12. AMENDATORY 59 O.S. 2021, Section 2095.12. 1,
is amended to read as follows:
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Section 2095.12.1 A. The minimum standards for license renewal
for mortgage lenders shall include the following:
1. The mortgage lender continues to meet the minimum standards
for license issuance under this act; and
2. The mortgage lender has paid all req uired fees for renewal
of the license.
B. The license of a mortgage len der failing to satisfy the
minimum standards for license renewal shall expire. The
Administrator of Consumer Credit may ad opt procedures in addition to
the requirements of paragraph 9 of subsection K of Section 2095.6 o f
this title for the reinstatement o f expired licenses consistent with
the standards established by the Nationwide Mortgage Multistate
Licensing System and Registry.
SECTION 13. AMENDATORY 59 O.S. 2021, Section 2095.13, is
amended to read as follows:
Section 2095.13 In addition to any other duties imposed upon
the Administrator of Consumer Credit by law, the Administrator sha ll
require mortgage brokers, mortg age lenders and mortgage loan
originators to be licensed and registered through the Nationwide
Mortgage Multistate Licensing System and Registry. In order to
carry out this requirement, the Administrator is authorized to
participate in the Nationwide Mortgage Multistate Licensing System
and Registry. For this purpose, the Administrator, upon approval of
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the Commission, may establi sh requirements by rule as necessary and
consistent with this act, including but not limited to:
1. Background checks for:
a. criminal history through fingerprint or other
databases,
b. civil or administrative records,
c. credit history, or
d. any other information as deemed necessary by the
Nationwide Mortgage Multistate Licensing System and
Registry;
2. The payment of fees to apply for or renew licenses through
the Nationwide Mortgage Multistate Licensing System and Registry;
3. The setting or resettin g as necessary of renewal or
reporting dates; and
4. Requirements for amending or surrenderi ng a license or any
other such activities as the Administrator deems necessary for
participation in the Nationwide Mortgage Multistate Licensing System
and Registry.
SECTION 14. AMENDATORY 59 O.S. 2021, Section 2095.14, is
amended to read as follows:
Section 2095.14 The Administrator of Consumer Credit shall,
upon approval by the Commission on Consumer Credit, establish by
rule a process whereby mortgage brokers, mortgage lenders and
mortgage loan originators may chall enge information entered into the
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Nationwide Mortgage Multistate Licensing System and Registry by the
Administrator.
SECTION 15. AMENDATORY 59 O.S. 202 1, Section 2095.18, is
amended to read as follows:
Section 2095.18 It is a violation of this act for an entity or
individual subject to this act to:
1. Directly or indirectly employ any scheme, device, or
artifice to defraud or mislead borrowers or lende rs or to defraud
any entity or individual;
2. Engage in any unfair or deceptive practice toward any entity
or individual;
3. Obtain property by fraud or misrepresentation;
4. Solicit or enter into a contract with a borro wer that
provides in substance th at the entity or individual subject to this
act may earn a fee or commission through "best efforts" to obtain or
modify a loan even though a loan is not actually obtained or
modified for the borrower;
5. Solicit, advertise or enter into a contract for spe cific
interest rates, points or other financing terms unless the terms are
actually available at the time of soliciting, advert ising or
contracting;
6. Conduct any business covered by this act without holding a
valid license as required under this act or assist or aide and abet
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any entity or individual in the conduct of business under this act
without a valid license as required under this act;
7. Fail to make disclosures as required by this act and any
other applicable state or federal law including regu lations
thereunder;
8. Fail to comply with this act or rules promulgated under this
act or fail to comply with any other state or federal law, including
any rules thereunder, applicable to any business authorized or
conducted under this act;
9. Make, in any manner, any false or deceptive statement or
representation, including, with regard to the rates, points, or
other financing terms or conditions for a residential mortgage loan
or engage in bait and switch advertising;
10. Negligently make any false st atement or knowingly and
willfully make any omission of material fact in connection with any
information or reports filed with a governmental agency or the
Nationwide Mortgage Multistate Licensing System and Registry or in
connection with any investigation conducted by the Administrator of
Consumer Credit or another governmental agency;
11. Make any payment, threat or promise, di rectly or
indirectly, to any entity or individual for the purposes of
influencing the independen t judgment of the entity or indiv idual in
connection with a residential mortgage loan or make any payment,
threat or promise, directly or indirectly, to any app raiser of a
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property, for the purposes of influencing the independent judgment
of the appraiser with respect to the value of the property;
12. Collect, charge, attempt to collect or charge or use or
propose any agreement purporting to collect or charge an y fee
prohibited by this act;
13. Cause or require a borrower to obtain property insurance
coverage in an amount that exceeds th e replacement cost of the
improvements as established by the property insurer; or
14. Fail to truthfully account for monies be longing to a party
to a residential mortgage loan transaction.
SECTION 16. AMENDATORY 59 O.S. 2021, Section 2095.20, is
amended to read as follows:
Section 2095.20 A. 1. There is hereby created in the State
Treasury a revolving fund for the Commission on Consumer Credit to
be designated the "Oklahoma Mortgage Broker and Mortgage Loan
Originator Recovery F und". The fund shall consist of fees received
by the Administrator of Consumer Credit as required by paragraph 6 5
of subsection M K of Section 2095.6 of this title to be paid into
the fund.
2. The revolving fund shall be a continuing fund not subject to
fiscal year limitations and shall be under the admini strative
direction of the Administrator. Monies accruing to the credit of
this fund are hereby appropriated and may be budgeted and expended
by the Commission, pursuant to rules promulgated by the Comm ission,
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for the purposes specified in subsection B of this section. The
provisions of this paragraph shall have retroactive a nd prospective
application.
3. Expenditures from the fund shall be made upon warr ants
issued by the State Treasurer against claim s filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
B. 1. Subject to the limitations of this subsection, monies in
the fund shall be used to reimburse any entity or individual in an
amount not to exceed Five Thousand Dollars ($5,000.00) Ten Thousand
Dollars ($10,000.00), who has been adjudged by a court of competent
jurisdiction to have suffered monetary damages by an entity or
individual required to have a license under the Oklahoma Secure and
Fair Enforcement for Mortgage Licensing Act in any transaction or
series of transactions for which a license is req uired under the
Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act
because of the acquisition of money or property by fraud,
misrepresentation, deceit, false pretenses, ar tifice, trickery, or
by any other act which would constitute a violation of the Oklahoma
Secure and Fair Enforcement for Mortgage Licensing Act.
2. Payments for claims based on judgments against any one
person required to have a license under this act sha ll not exceed in
the aggregate Thirty Thousand Dollars ($30,000.00) Sixty Thousand
Dollars ($60,000.00).
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3. Payments for claims may only be made for a cause of action
which has accrued on or after Nov ember 1, 1997, and which has
accrued not more than two (2) years prior to filing the action in
district court.
SECTION 17. AMENDATORY 59 O.S . 2021, Section 2095.21, is
amended to read as fo llows:
Section 2095.21 A. In order to meet the annual continuing
education requirements as provided in subsection A of Section
2095.10 of this title, a licensed mortga ge loan originator shall
complete at least eight (8) hours of education approved as provided
in subsection B of this section, which shall include at least:
1. Three (3) hours of federal law and regulations;
2. Two (2) hours of ethics, which shall include instruction on
fraud, consumer protection and fair lending issues; and
3. Two (2) hours of training related to lending standards for
the nontraditional mortgage product marketplace.
B. For purposes of subsection A of this section, continuing
education courses shall be reviewed an d approved by the Nationwide
Mortgage Multistate Licensing System and Registry base d upon
reasonable standards. Review and approval of a continuing education
course shall include review and approval of the course provider.
C. Nothing in this section shall preclude any education course
as approved by the Nationwide Mortgage Multistate Licensing System
and Registry that is provided by the employer of the mortgage loan
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originator or an entity which is affiliated with the mortgage l oan
originator by an agency contract or any subsi diary or affiliate of
such employer or entity.
D. Continuing education may be offered either in a classroom,
online or by any other means approved by the Nationwide Mortgage
Multistate Licensing System and Registry.
E. A licensed mortgage loan originator, except as provided in
subsection B of Section 2095.10 of th is title and subsection I of
this section:
1. May only receive credit for a continuing education course in
the year in which the course is taken; and
2. May not take the same approved course in the same o r
successive years to meet the annual requirements for continuing
education.
F. A licensed mortgage loan originator who is an approved
instructor of an approved continuing education course may re ceive
credit for the licensed mortgage loan originator 's own annual
continuing education requirement at the ra te of two (2) hours credit
for every one (1) hour taught.
G. An individual having successfully completed the education
requirements approved by t he Nationwide Mortgage Multistate
Licensing System and Registry in para graph 1 of subsection A and
subsections B and C of this section for any state shall be accepted
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as credit towards completion of continuing education requirements in
this state.
H. A licensed mortgage loan originator who subsequently becomes
unlicensed must complete the continuing education req uirements for
the last year in which the license was held prior to issuance of a
new or renewed license.
I. An individual meeting the requirement s of paragraphs 1 and 2
of subsection A of Section 2095.10 of this titl e may make up any
deficiency in continu ing education as established by rule.
SECTION 18. AMENDATORY 59 O.S. 2021, Section 2095.22, is
amended to read as follows :
Section 2095.22 In order to promote more effective regulation
and reduce regulatory burden through supervisory information
sharing:
1. Except as otherwise provided in 12 U.S.C., Section 5111, the
requirements under federal or Oklahoma law, regarding th e privacy or
confidentiality of any information or mat erial provided to the
Nationwide Mortgage Multistate Licensing System and R egistry and any
privilege arising under federal or state law, including the rules of
any federal or state cou rt, with respect to such information or
material, shall continue to appl y to such information or material
after the information or material has bee n disclosed to the
Nationwide Mortgage Multistate Licensing System and Registry. Such
information and material may be s hared with all state and federal
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regulatory officials with mo rtgage industry oversight authority
without the loss of privilege or the lo ss of confidentiality
protections provided by federal or Oklahoma law.
2. For these purposes, the Administrator of Cons umer Credit is
authorized to enter into agreements or sharing arrangements with
other governmental agencies, the Conference of State Ban k
Supervisors, the American Association of Residential Mortgage
Regulators or other associations representing government al agencies.
3. Information or material that is subject to a privilege or
confidentiality under paragraph 1 of this section shall not b e
subject to:
a. disclosure under any federal or state law governing
the disclosure to the public of information held by an
officer or an agency of the federal government or the
respective state, or
b. subpoena or discovery, or admission into evidence, in
any private civil action or administrative process,
unless with respect to any privilege held by the
Nationwide Mortgage Multistate Licensing System and
Registry with respect to suc h information or material,
the entity or individual to whom such informatio n or
material pertains waives, in whole or in part, in the
discretion of such entity or individual, that
privilege.
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4. Any provision of Oklahoma law relating to the disclosure of
confidential supervisory information or any information or material
described in paragraph 1 of this section that is inconsistent with
paragraph 1 of this section shall be superseded by the requirements
of this section.
5. This section shall not apply with respect to the information
or material relating to the employment history of and publicly
adjudicated disciplinary and enforcement actions against mortgage
brokers and mortgage loan originators that is included in the
Nationwide Mortgage Multistate Licensing System and Registry for
access by the public.
SECTION 19. AMENDATORY 59 O.S. 2021, Section 2095.23, is
amended to read as f ollows:
Section 2095.23 A. In addition to any au thority allowed under
the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act,
the Administrator of Consumer Credit s hall have the authority to
conduct investigations and examinations of the following:
1. Criminal, civil and administrative his tory information,
including nonconviction data;
2. Personal history and experience information including
independent credit repo rts obtained from a consumer reporting agency
described in 15 U.S.C., Section 1681a(p);
3. The financial condition and interna l management policies and
procedures of any entity licensed or required to be licensed as a
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mortgage lender for purposes of deter mining that the entity is
operating honestly, fairly and efficiently within the purposes of
this act; and
4. Any other documen ts, information or evidence the
Administrator deems relevant to the inquiry or investigation
regardless of the location, possessi on, control or custody of such
documents, information or evidence.
B. For the purposes of investigating violations or complain ts
arising under the Oklahoma Sec ure and Fair Enforcement for Mortgage
Licensing Act or for the purposes of examination, the Admi nistrator
may review, investigate or examine any licensee or entity or
individual subject to the Oklahoma Secure and Fair Enfor cement for
Mortgage Licensing Act , as often as necessary in order to carry out
the purposes of the Oklahoma Secure and Fair Enfor cement for
Mortgage Licensing Act. The Administrator may direct, subpoena or
order the attendance of and examine under oath al l individuals whose
testimony may be required about the loans or the business or subject
matter of any such examination or invest igation and may direct,
subpoena or order such indivi dual to produce books, accounts,
records, files and any other documents th e Administrator deems
relevant to the inquiry. Any examination or investigation report
and any information obtained during an ex amination or investigation
shall not be subject to di sclosure under the Oklahoma Open Records
Act. However, any examination or investigation report and any
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information obtained during an examination or investigation shall be
subject to disclosure pursuant to a court order and may also be
disclosed in an individual proceeding and any order issued pursuant
to the Oklahoma Secure an d Fair Enforcement for Mortgage L icensing
Act.
C. The Administrator may require payment of an examination fee
either at the time of initial application, renewal of the license or
after an examination has been conducted. The examination fee shall
be prescribed by rule of the Commission o n Consumer Credit. The
Administrator shall require a licensee or an entity or individual
subject to the requirements of this act to pay travel costs for
conducting examinations or investigations outside of the State of
Oklahoma.
D. Each licensee or enti ties or individuals subject to the
Oklahoma Secure and Fair Enforcement for Mortgage Licensing Ac t
shall make available to the Administrator, upon req uest, any books
and records relating to the requirements of the Oklahoma S ecure and
Fair Enforcement for M ortgage Licensing Act. The Administrator
shall have access to such books and records and intervi ew the
officers, principals, mortgage loan originator s, employees,
independent contractors, agents and customers of the license e,
entity or individual subject to the Oklahoma Secure and Fair
Enforcement for Mortgage Licensing Act concerning the requirement s
of the Oklahoma Secure and Fair Enforcement for Mortgage Licensing
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Act. Books and records shall be maintained for a period o f time
required by rule of the A dministrator.
E. D. Each licensee or entity or individual subject to the
Oklahoma Secure and Fai r Enforcement for Mortgage Licensing Act
shall make or compile reports or prepare other information as
directed by the Administ rator in order to carry out the pu rposes of
this section including, but not limited to:
1. Accounting compilations;
2. Information lists and data concerning loan transactions in a
format prescribed by the Administrator; or
3. Such other information deem ed necessary to carry out the
purposes of this section.
F. E. In making any examination or investigation authorized by
the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act,
the Administrator may control access to any documents and records o f
the licensee or entity or individu al under examination or
investigation. The Administrator may take possession of the
documents and records or place an entity or individual in exclusive
charge of the documents and records in the place where they are
usually kept. During the period of con trol, no entity or individual
shall remove or attempt to remove any of the documents and reco rds
except pursuant to a court order or with the consent of the
Administrator. Unless the Administrator has reasonable grounds to
believe the documents or records of the licensee have been, or are
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at risk of being altered or destroyed for purposes of conc ealing a
violation of the Oklahoma Secure and Fair Enforcement for Mortgage
Licensing Act, the licensee or owner of the documen ts and records
shall have access to the documents or records as necessary to
conduct its ordinary business affairs.
G. F. In order to carry out the purposes of this section, the
Administrator may:
1. Retain attorneys, accountants, or other professionals and
specialists as examiners, auditors or investigators to conduct or
assist in the conduct of examinations or investigations;
2. Enter into agreements or relationships with other government
officials or regulatory associations in order to improve
efficiencies and reduce regulatory burden by sharing resources,
standardized or uniform methods or procedures and documents,
records, information or evidence obtained under this section;
3. Use, hire, contract or employ public or privately available
analytical systems, methods or software to examine or investigate
the licensee, entity or individual subject to the Oklahoma Secure
and Fair Enforcement for Mortgage Licensing Act;
4. Accept and rely on examination or investigation reports made
by other government of ficials, within or without this state;
5. Accept audit reports made by an independent certified public
accountant for the licens ee or entity or individual subject to the
Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act in
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the course of that part of the examination covering the same general
subject matter as the audit and may incorporate the audit report in
the report of the examination, report of investigation or other
writing of the Administrator; or
6. Participate in multistate mortgage e xaminations as scheduled
by the Multi-State Mortgage Committee established by the Conference
of State Bank Supervisors and the Am erican Association of
Residential Mortgage Regulators.
H. G. The authority of this section shall remain in effect,
whether such a licensee or entity or individual sub ject to the
Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act acts
or claims to act under any licensing or registration law of this
state or claims to act without such authority.
I. H. No licensee or entity or individual subject to
investigation or examination under this section may knowingly
withhold, abstract, remove, mutilate , destroy or secrete any books,
records, computer records or other information.
SECTION 20. AMENDATORY 59 O.S. 2021, Section 2095.24, is
amended to read as follows:
Section 2095.24 Each licensee shall submit to the Nationwide
Mortgage Multistate Licensing System and Registry reports of
condition, which shall be in such form and shall conta in such
information as the Nationwide Mortgage Multistate Licensing System
and Registry may require.
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SECTION 21. AMENDATORY 59 O.S. 2021, Section 2095.25, is
amended to read as follows:
Section 2095.25 Notwithstanding or subject to state privacy
law, the Administrator of Consumer Credit is required to regularly
report violations of this act as well as enforceme nt actions and
other relevant information to the Nationwide Mortgage Multistate
Licensing System and Regis try subject to the provisions con tained in
Section 25 2095.22 of this act title.
SECTION 22. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2095.27 of Title 59, unless
there is created a duplication in numbering, reads as follows:
A licensee may permit its employees or independent cont ractors
to work at remote locations in compliance with the licensee's
written policies and procedures subject to the following conditions:
1. Licensee has written policies and procedures for supervision
of employees and independent contractors working from r emote
locations;
2. Access to a licensee's platforms and customer inform ation
shall be in accordance with the licensee's comprehensive written
information security plan;
3. No in-person customer interaction will occur at an
employee's or independent contractor's residence, unless such
residence is a licensed or registered location;
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4. Physical records shall not be maintained at a remote
location;
5. Interactions with and conversations about consume rs will be
in compliance with federal and state informa tion security
requirements, including applicable provisions under the Gram m-Leach-
Bliley Act and the Safeguards Rule established under the Federal
Trade Commission, set forth in 16 C.F.R. Part 314, as such may be
amended from time to time;
6. Employees or independent contractors working at a remote
location must access the lice nsee's secure systems (including a
cloud-based system) directly from any out -of-office device such
employee or independent cont ractor uses (laptop, phone, desktop
computer, tablet, etc. ) via a virtual private network (VPN) or
comparable system that ensures secure connectivity and requires
passwords or other forms of authentication to access;
7. Licensee shall ensure that appropri ate security updates,
patches, or other alterations to the security of all devices used at
remote locations are installed and mai ntained;
8. Licensee shall have an ability to remotely lock or erase
company-related contents of any device or otherwise remot ely limit
all access to a licensee 's secure systems;
9. The Nationwide Multistate Licensing Sys tem and Registry
record of a mortgage loan originator that works from a remote
location shall designate the princi pal place of business as their
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registered location unless such mortgage loan originator elects to
choose a licensed branch office as a registered location.
SECTION 23. This act shall become effective November 1, 2024.
59-2-8794 SW 01/11/24