Section 50318 Of Chapter 5. Administration And Powers Of The Commissioner From California Financial Code >> Division 20. >> Chapter 5.
50318
. (a) The commissioner may, after appropriate notice and
opportunity for hearing, by order censure or suspend for a period not
exceeding 12 months, or bar from any position of employment,
management, or control any residential mortgage lender, residential
mortgage loan servicer, or mortgage loan originator, or any other
person, if the commissioner finds either of the following:
(1) That the censure, suspension, or bar is in the public interest
and that the person has committed or caused a violation of this
division or rule or order of the commissioner, and (A) the violation
was either known or should have been known by the person committing
or causing it, or (B) the violation has caused material damage to the
residential mortgage lender, residential mortgage loan servicer,
mortgage loan originator, or to the public.
(2) That the person (A) has been convicted of or pleaded nolo
contendere to any crime, or (B) has been held liable in any civil
action by final judgment, or any administrative judgment by any
public agency, if that crime or civil or administrative judgment
involved any offense specified in subdivision (b) of Section 50317,
or any other offense reasonably related to the qualifications,
functions, or duties of a person engaged in the business in
accordance with the provisions of this division.
(b) Within 15 days from the date of a notice of intention to issue
an order pursuant to subdivision (a), the person may request a
hearing under the Administrative Procedure Act (Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code). Upon receiving a request, the matter shall be set
for hearing to commence within 30 days after receipt unless the
person subject to this division consents to a later date. If no
hearing is requested within 15 days after the mailing or service of
the notice and none is ordered by the commissioner, the failure to
request a hearing shall constitute a waiver of the right to a
hearing.
(c) Upon receipt of a notice of intention to issue an order
pursuant to this section, the person who is the subject of the
proposed order is immediately prohibited from engaging in any
activities subject to licensure under the law.
(d) Persons suspended or barred under this section are prohibited
from participating in any business activity of a licensed residential
mortgage lender, residential mortgage loan servicer, or mortgage
loan originator and from engaging in any business activity on the
premises where a licensed residential mortgage lender, residential
mortgage loan servicer, or mortgage loan originator is conducting its
business. This subdivision shall not be construed to prohibit
suspended or barred persons from having their personal transactions
processed by a licensed residential mortgage lender, residential
mortgage loan servicer, or mortgage loan originator.
(e) This section shall apply to any violation, conviction, plea,
or judgment after the enactment of this section.
(f) If any provision of this section or the application of this
section to any person or circumstances is held invalid, that
invalidity shall not affect other provisions or applications of this
section that can be given effect without the invalid provision or
application, and to this end the provisions of this section are
severable.
(g) For purposes of this section, the term "employee" means (1) a
mortgage loan originator, including a loan officer or other
individual who negotiates agreements with the public, or (2) an
individual with access to or responsibility for trust funds held by
the licensee.