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");
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
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).
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.
§ 45-729 (Supp. 2009), the DEPARTMENT will take such administrative action as it
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
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
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?
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?
5. In the last three years, have you had property foreclosed upon or given a lender a deed-in-lieu of a
6. In the last three years, have you been seriously delinquent (more than 90 days late) on any credit
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#)