Mortgage Loan Originator License Applicants

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					               STATE OF NEBRASKA
               Department of Banking & Finance


IN THE MATTER OF:                            )          ORDER ADOPTING
                                             )        INTERIM PROCEDURES
Mortgage Loan Originator                     )        FOR MORTGAGE LOAN
License Applicants                           )       ORIGINATOR LICENSING


       WHEREAS, Neb. Rev. Stat. § 45-750 (Supp. 2009) provides that the Nebraska

Department of Banking and Finance ("DEPARTMENT") is responsible for the

administration and enforcement of the Residential Mortgage Licensing Act ("the Act");

and

       WHEREAS, pursuant to the Act, the DEPARTMENT began accepting mortgage

loan originator license applications via the Nationwide Mortgage Licensing System

("NMLS") on January 4,2010; and

       WHEREAS, Neb. Rev. Stat. § 45-727 (Supp. 2009) provides that all individuals

conducting the activities of a mortgage loan originator concerning dwellings or

residential real estate located in Nebraska must obtain a mortgage loan originator license

by July 30, 2010; and

       WHEREAS, Neb. Rev. Stat. § 45-728 (LB 892,2010) requires an applicant for a

mortgage loan originator license to submit authorization to the NMLS to obtain a credit

report which it will provide the credit report to the DEPARTMENT; and

       WHEREAS, Neb. Rev. Stat. § 45-729(1)(c) (Supp. 2009) requires that the

DEPARTMENT find that an applicant for a mortgage loan originator license must have

demonstrated financial responsibility, character, and general fitness such as to command
the confidence of the community and to warrant a determination that the mortgage loan

originator will operate honestly, fairly, and efficiently within the purposes of the Act; and

       WHEREAS, Neb. Rev. Stat. § 45-729(1)(c) (Supp. 2009) further provides that for

purposes of determining financial responsibility, the DEPARTMENT may consider

current outstanding judgments, except those arising solely from medical debt, current

outstanding tax liens or other governmental liens, any foreclosures in the preceding three

years, and a pattern of seriously delinquent accounts within the last three years; and

       WHEREAS, the NMLS has determined that it will not be able to implement the

functionality to obtain credit reports until October 2010, after the date by which all

mortgage loan originators in Nebraska must be licensed; and

       WHEREAS, Neb. Rev. Stat. § 45-727(4) (Supp. 2009) provides that the Director

may adopt interim procedures for licensing; and

        WHEREAS, Neb. Rev. Stat. § 45-748(1) (LB 892,2010) provides that the

Director may adopt by order any requirements necessary for the DEPARTMENT to

participate in the NMLS; and

        WHEREAS, the Director has concluded that the adoption of interim procedures

for mortgage loan originator licensing which address financial responsibility is necessary

and appropriate in order to comply with the requirements of the Act.

        IT IS, THEREFORE, ORDERED, ADJUDGED, and DECREED as follows:

        1. All applicants for a mortgage loan originator license shall submit to the

DEPARTMENT a completed Financial Responsibility Disclosure form, attached hereto as

Exhibit "A" and any supplemental information required by the Financial Responsibility

Disclosure form.



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       2. The DEPARTMENT may conduct any investigation necessary to confirm the

information contained in the Financial Responsibility Disclosure form, including, but not

limited to, the use of databases containing public records concerning an applicant.

       3. Upon completion of its investigation, the DEPARTMENT will make a

preliminary determination as to whether or not the applicant meets the financial

responsibility requirement of Neb. Rev. Stat. § 45-729 (Cum. Supp. 2009). Should the

DEPARTMENT make a preliminary determination that the applicant meets the financial

responsibility requirement, and meets all of the other requirements of Section 45-729, the

DEPARTMENT shall issue a conditional license to such applicant. Should the

DEPARTMENT determine that the applicant fails to meet the requirements to obtain a

license, including financial responsibility, the DEPARTMENT shall take such

administrative action as it deems appropriate.

       4. All licenses issued as provided in paragraph #3, above, shall be conditioned

upon the DEPARTMENT making a final determination of financial responsibility after

receipt and review of a credit report through the NMLS. Such conditional licenses shall

expire on December 31,2010.

       5. Beginning in October 2010, mortgage loan originators may submit

authorization for the NMLS to obtain such individual's credit report and to distribute it to

the DEPARTMENT. Each mortgage loan originator who receives a conditional license

pursuant to these procedures shall submit such authorization to the NMLS as part of

submitting a request to renew his or her license for year 2011 pursuant to Neb. Rev. Stat.

§ 45-732 (Supp. 2009).




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       6. Upon receipt of the request for renewal and the credit report, the

D EP ARTMENT shall make a final determination as to whether the mortgage loan

originator is financially responsible as required by Neb. Rev. Stat. § 45-729 (Supp. 2009).

Should the DEPARTMENT determine that the mortgage loan originator's financial

responsibility is sufficient to comply with Neb. Rev. Stat. § 45-729 (Supp. 2009), and the

mortgage loan originator has met all of the other requirements for renewal of his or her

license pursuant to Neb. Rev. Stat § 45-732 (Supp. 2009), the DEPARTMENT shall,

except as provided in paragraph #9 below, replace the conditional license with an

unconditional license for the remainder of the 2010 licensing term, and shall approve the

renewal of such unconditional license for the year 2011.

       7. In the event the DEPARTMENT is not able to complete its determination ofa

mortgage loan originator's financial responsibility prior to December 31, 2010, provided

that the licensee meets all of the other requirements for renewal of his or her license

pursuant to Neb. Rev. Stat. § 45-732 (Supp. 2009), the DEPARTMENT shall issue a

second conditional license to the mortgage loan originator for the 2011 licensing term.

Such license shall be conditioned upon the DEPARTMENT making a final determination

as to financial responsibility. Should the DEPARTMENT subsequently determine that

the mortgage loan originator's financial responsibility is sufficient to comply with Neb.

Rev. Stat. § 45-729 (Supp. 2009), the DEPARTMENT shall, except as provided in

paragraph #9 below, replace the conditional license with an unconditional license which

shall expire on December 31, 2011.

        8. Should the DEPARTMENT determine that the mortgage loan originator does

not meet the requirements for financial responsibility as required by Neb. Rev. Stat.



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§ 45-729 (Supp. 2009), the DEPARTMENT will take such administrative action as it

deems appropriate.

       9. Nothing in this Order shall limit the DEPARTMENT's ability to place

additional conditions upon a mortgage loan originator's license as authorized by law.

      10. A copy of this Order shall be mailed to each mortgage banker licensed or

registered as of the date of this Order and shall be made publicly available on the

DEPARTMENT's website. In addition, the DEPARTMENT shall notify each individual

receiving such conditional license that this Order is available on its website.

      11. This Order shall remain in effect until subsequently modified or vacated by

Order of the Director.

      12.   The effective date of this Order shall be the date of the Director's signature.


                          ~
        DATED this ~ day of April, 2010.



                                       STATE OF NEBRASKA
                                       DEPARTMENT OF BANKING AND FINANCE




                                               5
                        FINANCIAL RESPONSIBLITY DISCLOSURES

INSTRUCTIONS: Please answer the following questions. For any "Yes" answers, submit supporting
documentation including copies of liens, court documents, default notices, statements, etc. You must also
submit a written narrative explaining the facts and circumstances surrounding the items disclosed. In
particular, if the derogatory items disclosed are related to medical debt, your narrative should explain
those issues.

IMPORTANT REMINDER: The Department will require you to submit authorization to obtain a credit
report to the Department through the Nationwide Mortgage Licensing System ("NMLS") once system
functionality exists. In addition, the Department may use other resources to verify the information that
you provide on this form. Providing false and/or inaccurate information to the Department may result in
your license being denied or revoked by the Department.

1.   Have you filed a personal bankruptcy petition or been the subject of an involuntary bankruptcy
     petition within the past 10 years?
     DYes                 DNo

2. Are there any outstanding judgments against you?
   DYes                D No

3. Are you a defendant in any lawsuit in which the plaintiff is seeking a monetary judgment?
   DYes               D No

4.   Are you currently the subject of any tax or other government lien or currently the subject of a
     proceeding seeking to impose a tax or other government lien?
     DYes                DNo

5.   In the last three years, have you had property foreclosed upon or given a lender a deed-in-lieu of a
     foreclosure?
     [JYes                DNo

6.   In the last three years, have you been seriously delinquent (more than 90 days late) on any credit
     account?
     DYes                 nNo

I make oath and say that I executed this application on my own behalf, and agree to and represent that the
information and statements contained herein, including supporting documentation attached hereto, and
other information filed herewith, all of which are made a part of my application for a mortgage loan
originator license, are current, true, accurate, and complete and are made under the penalty of perjury, or
un-sworn falsification to authorities, or similar provisions as provided by law. I verify that I am the
named person below and agree to the language as stated.



(Print Applicant's Name)                                 (Signature of Applicant)



(Date)                                                   (NMLS 10#)

                                                                                                     EXHIBIT

                                                                                               fA

				
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Description: Mortgage loans where borrowers to certain items of collateral as a guarantee to bank loans. It is a kind of bank loan forms, collateral usually includes securities, state bonds, a variety of stocks, real estate, and goods bill of lading, warehouse receipts or other documentation to prove ownership of the items. Due loans, the borrower must be shown with the return, or bank the right processor collateral, as a compensation.