Mortgage loan originators.

WORKING DRAFT

ORIGINAL HOUSE

BILL

NO.
0169

ENROLLED ACT NO. 95, HOUSE OF REPRESENTATIVES

SIXTIETH LEGISLATURE OF THE STATE OF
WYOMING
2009 GENERAL SESSION

AN ACT relating to mortgage loan originators; modifying the Wyoming Residential Mortgage Practices Act; modifying the Uniform Consumer Credit Code; amending and providing new definitions; providing exceptions for licenses; providing for surety bonds; providing for confidentiality; providing coordination with and disclaimer to a national registry system; providing for enforcement; requiring reports; providing for loan origination licensing and registration; authorizing rulemaking; providing for processing applications; providing for
prelicensing
education; providing for continuing education; requiring testing; providing for license renewal; requiring fees; making conforming amendments; repealing a license exemption; and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 40
‑
14
‑
637 through 40
‑
14
‑
649 and 40
‑
23
‑
124 through 40
‑
23
‑
133 are created to read:

40
‑
14
‑
637.

Surety bonds.

(a)

Any
organization

employing or contracting with a mortgage loan originator
shall maintain a surety bond to the state of
Wyoming
in accordance with this section. The surety bond shall be used to cover individual mortgage loan originators employed
by
or under contract with
the organization
. The amount of the bond shall be established by
rule of
the
administrator
based upon the volume of residential mortgage loan activity transacted by the
organization
under this act
.

(b)

The surety bond shall be a continuing obligation of the issuing surety. The surety
'
s liability under the bond for any claims made under the bond either individually or in the aggregate shall in no event exceed the face amount of the bond issued. The bond shall be issued by a surety authorized to do business in the state of
Wyoming
. The bond, including any and all riders and endorsements executed subsequent to the effective date of the bond, shall be placed on file with the
administrator
.

(c)

In the event
an organization
or
mortgage loan originator
employed by or under contract with
an organization
has violated any of the provisions of this a
c
t or a rule or order lawfully made pursuant to this a
c
t
pertaining to a residential mortgage loan transaction
, or federal law or regulation pertaining to the mortgage lending or mortgage brokering, and has damaged any person by such violation, then the bond shall be forfeited and paid by the surety to the state of Wyoming for the benefit of any person so damaged, in an amount sufficient to satisfy the violation or the bond in its entirety if the violation exceeds the amount of the bond.

(d)

Surety bonds shall remain effective continuously until released in writing by the
administrator
. If a bond has not been previously released by the
administrator
, the bond shall expire two (2) years after the date of the surrender, revocation or expiration of the license.

40
‑
14
‑
63
8
.

Mortgage call reports.

Each
organization

employing or contracting with a mortgage loan originator
shall submit to the registry reports of condition, which shall be in such form and shall contain such information as require
d by the registry
.

40
‑
14
‑
63
9
.

Report to
the r
egistry.

The
administrator

shall
regularly report violations of this
act
relating to transactions conducted by mortgage loan originators
, as well as enforcement actions and other relevant information, to the registry subject to the provisions contained in W.S. 40
‑
14
‑
636.
The administrator shall establish by rule a process where a mortgage loan originator may challenge information entered into the registry by the administrator.

Part 4
.

Mortgage Loan Originator Licensing

40
‑
14
‑
6
40
.

Additional d
efinitions.

(a)

As used in this part:

(i)

"
Channeling agent
"
means the third party licensing system that gathers the application information and distributes it to
Wyoming
for review for the approval or denial decision;

(i
i
)

"
Clerical or support duties
"
means:

(A)

The receipt, collection, distribution and analysis of information common for the processing or underwriting of a
residential mortgage loan; and

(B)

Communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms;

(i
i
i)

"
Depository institution
"
means a
n organization
as defined in
12 U.S.C. 1813
of th
e Federal Deposit Insurance Act and includes
any credit union;

(iv
)

"
Dwelling
"
means a residential structure that contains one
(1)
to four
(4)
units, whether or not that structure is attached to real property.

"
Dwelling
"
, if it is used as a residence
,
includes an individual condominium unit
, cooperative unit, mobile home
and trailer;

(
v)

"
Federal banking agency
"
means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration or the federal deposit insurance corporation;

(
v
i
)

"
Immediate family member
"
means a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, stepsibling and any adoptive relationship included in this paragraph;

(
v
ii
)

"
Individual
"
means a natural person;

(v
iii
)

"
Loan processor or underwriter
"
means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of
an
organization employing or contracting with a mortgage loan originator
, or an exempt person under W.S. 40
‑
14
‑
121;

(ix
)

"
Mortgage loan originator
"
:

(A)

Means an individual who for compensation or gain or in the expectation of compensation or gain:

(I)

Takes a residentia
l mortgage loan application; or

(II)

Offers or negotiates the terms of a residential mortgage loan.

(B)

Shall not include any individual engaged solely as a loan processor or underwriter except as otherwise descri
bed in W.S. 40
‑
14
‑
641(d);

(C)

Shall not include a person
who
only performs real estate brokerage activities and is licensed or registered in accordance with
Wyoming
law, unless the person is compensated by a lender, a mortgage broker or other mortgage loan originator or by any agent of such lender, mortgage broker or othe
r mortgage loan originator; and

(D)

Shall not include a person solely involved in extensions of credit relating to timeshare
plans.

(x
)

"
Nontraditional mortgage product
"
means any mortgage product other than a
thirty (
30
)
year fixed rate mortgage;

(
x
i
)

"
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)

Arranging meetings or communicating with any
part
y
interested 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
,
unless the negotiating relates to the financing of these transactions, which shall then constitute engaging in the business as a mortgage loan originator;

(D)

Engaging in any activity for which a person engaged in the activity is required to 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 subparagraph (A), (B), (C) or (D) of this
paragraph
.

(x
ii
)

"
Registered mortgage loan originator
"
means any individual who:

(A
)

Is registered with, and maintains a unique identifier through, the registry;
and

(
B
)

Meets the definition of mortgage loan originator and is an employee of:

(I)

An institution regulated by the farm credit administration
;

(I
I
)

A depository institution;
or

(I
I
I)

A subsidiary that is:

(1)

Owned and controlled by a depository institution; and

(2)

Regulated by a federal banking agency
.

(x
i
ii)

"
Registry
"
means the n
ationwide mortgage licensing system and registry
which is
a mortgage licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the licensing and registration of mortgage lenders, mortgage brokers and mortgage loan originators;

(xi
v
)

"
Residential mortgage loan
"
means a
consumer
loan
as defined in W.S. 40
‑
14
‑
304 or a consumer credit sale as defined in W.S. 40
‑
14
‑
204,
made primarily for personal, family or household use
that is secured b
y a mortgage, deed of trust
or other equivalent consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a dwelling
;

(x
v
)

"
Timeshare plan
"
means as defined in 11 U.S.C. § 101(53D);

(xv
i
)

"
Unique identifier
"
means a number or other identifier assigned by protocols established by the
r
egistry.

40
‑
14
‑
641
.

Loan originator licensing
;
registration
;
ru
l
e
making
.

(a)

An individual, unless specifically exempted under subsection (c) of this section, shall not engage in the business of a mortgage loan originator
for

any dwelling located in
Wyoming
without first obtaining and maintaining annually a license in accordance with
part 4 of
this a
r
t
icle
. Each licensed mortgage loan originator shall register with and maintain a valid unique identifier issued by the registry.

(b)

In order to facilitate an orderly transition to licensing and minimize disruption in the marketplace, the effective date for subsection (a) of this section shall be
July 1, 2010
.

(c)

An individual is
exempt from subsection (a) of this section
if he is
:

(i)

A registered mortgage loan originator, when acting for an entity described in W.S. 40
‑
14
‑
6
40(a)(xii)(B)(I), (II) or (III);

(ii)

Any individual who offers or negotiates terms
of
a residential mortgage loan with or on behalf of a
n immediate
family me
mber of the individual;

(iii)

Any individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that
serves as a seller
'
s residence;

(iv)

A licensed attorney who negotiates 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;

(v)

An individual engaging solely in loan processor or underwriter activities, who does not represent to the public, through advertising or other means of communicating or providing information including the use of business cards, stationery, brochures, signs, rate lists or other promotional items, that such individual can or will perform any of the activities of a mortgage loan originator.

(d)

A loan processor or underwriter who is an independent contractor
shall
not engage in the activities of a loan processor or underwriter unless
the
independent contractor loan processor or underwriter obtains and maintains a license pursuant to subsection (a) of this section. Each independent contractor loan processor or underwriter licensed as a mortgage loan originator shall have and maintain a valid unique identifier issued by the registry.

(e)

For the purpose of implementing an orderly and efficient licensing process the
administrator
may establish licensing rules or regulations and interim procedures for licensing and acceptance of applications.

40
‑
14
‑
64
2
.

Loan originator application
;
processing.

(a)

Applicants for a mortgage loan originator license shall apply in a form prescribed by the
administrator
. Each application form shall contain content as
established
by the
administrator
and may be changed or updated as necessary by the
administrator
in order to carry out the purposes of
part 4 of this article
.

(b)

In order to fulfill the purposes of this a
c
t, the
administrator

may

establish relationships or
contract with the registry or
any other entity
designated by the registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this a
c
t.

(c)

In connection with an application for licensing as a mortgage loan originator, the applicant shall, at a minimum, furnish to the registry information concerning the applicant
'
s identity, including:

(i)

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

(ii)

Personal history and experience, including the submission of authorization for the
registry and the
administrator
to obtain:

(A)

An independent credit report obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act; and

(B)

Information related to any administrative, civil or criminal findings by any governmental jurisdiction.

(d)

For the purposes of this section and in order to reduce the points of contact which the federal bureau of investigation may have to maintain for purposes of paragraph (c)(i) of this section and subparagraph (c)(ii)(B) of this section, the
administrator
may use the registry as a channeling agent for requesting information from and distributing information to the department of just
ice or any governmental agency.

(e)

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 (c)(ii)(A) and (B) of this section, the
administrator
may use the registry as a channeling agent for requesting and distributing information to and from any source
a
s directed by the
administrator
.

(f)

Each application submitted under subsection (a) of this section shall be accompanied by an application fee not to exceed three hundred dollars ($300.00), as established by rule of the
administrator
. When an application for licensure is denied or withdrawn, the
administrator
shall retain all fees paid by the applicant.

40
‑
14
‑
64
3
.

Issuance of
loan originator
license
s
.

(a)

The
administrator
shall not issue a mortgage loan originator license unless the
administrator
makes at a minimum the following findings:

(i)

The applicant has
not
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;

(ii)

The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court:

(A)

During the seven (7) year period preceding the date of the application for licensing and registration; or

(B)

At any time preceding the date of application, if the felony involved an act of fraud, dishonesty, or a breac
h of trust or money laundering.

Any pardon of a conviction shall not be a conviction for the purposes of this
paragraph
.

(iii)

The applicant has 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 this a
c
t;

(
i
v)

The applicant has completed the
prelicensing
education requirement pursuant to W.S. 40
‑
14
‑
64
4
;

(v)

The applicant has passed a written test that meets the test requirement described in W.S. 40
‑
14
‑
64
5
.

(
b
)

For purposes of paragraph
(a)(iii) of this section,
a person has shown that he is not fin
an
c
i
ally responsible when he has shown a disregar
d in the management of
hi
s
own financial condition.

A determination that an individual has not shown financial responsibility shall include, but not be limited to:

(
i
)

Having any ou
tstanding judgment, except
a
judgment solely as a result of medical expenses;

(
ii
)

Having any
outstanding tax lien or other government lie
n
;

(
iii
)

Having any f
oreclosure within the past three
(3) years;

(
iv
)

Having a
pattern of serious
ly
delinquent accounts within the past three
(3)
years.

(
c
)

Upon written request, an applicant is entitled to a hearing on the question of his qualifications for a license if:

(i)

The
administrator
has notified the applicant in writing that his application has been denied, or objections to the application have been filed with the
administrator
;

(ii)

The
administrator
has not issued a license within sixty (60) days after a complete application for the license was filed.

(
d
)

If a hearing is held, the applicant and those filing objections shall reimburse, pro rata, the
administrator
for his reasonable and necessary expenses incurred as a result of the hearing. Notwithstanding any provision under the Wyoming Administrative Procedure Act, a request for hearing shall not be made more than fifteen (15) days after the applicant has received notification by certified mail that the application has been denied and stating in substance the
administrator
'
s finding supporting denial of the application or that objections have been filed and the substance thereof.

40
‑
14
‑
64
4
.

Prelicensing
and
relicensing
education
of loan originators
.

(a)

In order to meet the
prelicensing
education requirement referred to in W.S. 40
‑
14
‑
64
3(a)(i
v), a person shall complete at least
twenty (
20
)
hours of education approved in accordance with subsection (b) of this section
, which shall include at least:

(i)

Three (
3
) hours of federal law and regulations related to mortgage origination;

(ii)

Three (
3
)
hours of ethics, which shall include instructio
n on fraud, consumer protection and fair lending issues; and

(iii)

Two (
2
)
hours of training related to lending standards for the nontraditional mortga
ge product marketplace.

(b)

For purposes of subsection (a) of this section,
prelicensing
education courses shall be reviewed and approved by the registry.
The r
eview and approval of a
prelicensing
education course shall include review and a
pproval of the course provider.

(c)

Nothing in this section shall preclude any
prelicensing
education course, as approved by the registry, that is provided by the employer of the applicant or an entity which is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of such employer or entity.

(d)

Prelicensing
education may be offered either in a classroom, online or by any other means approved by the registry.

(e)

T
he
prelicensing
education requirements approved by the registry in paragraphs (a)(i), (ii) and (iii)

of this section for any state shall be accepted as credit towards completion of
prelicensing
education requirements in
Wyoming
.

(f)

A
n individual
licensed under
W.S. 40
‑
14
‑
641

after July 1, 2009 and who
subsequent
ly applies to be licensed again:

(i)

Shall n
o
t
have
to
complete

prelicensing
education requirements;

(ii)

Shall have completed
all the continuing education requirements
pursuant to W.S. 40
‑
14
‑
647
.

40
‑
14
‑
64
5
.

Testing
of mortgage loan originators
.

(a)

In order to meet the written test requirement
under
W.S. 40
‑
14
‑
64
3
(a)(v), an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the registry and administered by a test pro
vider approved by the registry.

(b)

A written test shall not be treated as a qualified written test for purposes of subsection (a) of this section unless the test adequately measures the applicant
'
s knowledge and comprehension in approp
riate subject areas, including:

(i)

Ethics;

(ii)

Federal law and regulation pert
aining to mortgage origination;

(iii)

Wyoming
law and regulation pertaining to mortgage origination; and

(iv)

Federal and
Wyoming
law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace
and fair lending issues.

(c)

Nothing in th
is
section shall prohibit a test provider from providing a test at the location of the employer of the applicant
, 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)

An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five percent (75%) correct answers to
test questions.

(e)

An individual may retake a test three (3) times with each
test
taking occurring at least thirty (30) days after the preceding test.

(f)

After failing three (3) tests, an individual shall wait at least six (6) months before taking the test again.

(g)

A licensed mortgage loan originator who fails to
maintain a valid license for at least
five (5) years shall retake the
written
test
. Any time the individual spends working as a registered mortgage loan originator shall not be counted against this five (5) year period.

40
‑
14
‑
64
6
.

Standards for
loan originator license renewal; rulemaking.

(a)

The minimum standards for license renewal for mortgage loan originato
rs shall include the following:

(i)

The mortgage loan originator continues to meet the minimum standards for license issuance under W.S. 40
‑
14
‑
64
3(a)(i) through (v)
;

(ii)

The mortgage loan originator has satisfied the annual continuing education requirements described in W.S. 40
‑
14
‑
64
7
;

(iii)

The mortgage loan originator has paid
the
license renewal fee not to exceed three hundred dollars ($300.00), as
established
by
rule of
the
administrator
.

(b)

Each mortgage loan originator license shall expire on December 31. The license shall be renewed
annually
by satisfying the minimum
standards for license renewal
not less than thirty (30) days before the stated expiration date. The

administrator
may establish rules for the reinstatement of expired licenses consistent with the standards established by the registry
.

40
‑
14
‑
64
7
.

Continuing education for mortgage loan originators; rulemaking
.

(a)

In order to meet the annual continuing education requirements
required by
W.S. 40
‑
14
‑
64
6
(a)(ii), a licensed mortgage loan originator shall complete at least
eight (
8
)
hours of education approved in accordance with subsection (b) of this section
, which shall include at least:

(i)

Three (
3
)
hours of
federal law and regulations relating to mortgage origination;

(ii)

Two (
2
)
hours of ethics, which shall include instruction on fraud, consumer protecti
on and fair lending issues; and

(iii)

Two

(
2
)
hours of training related to lending standards for the nontraditiona
l mortgage product marketplace.

(b)

For purposes of
sub
section (a) of this section, continuing education courses shall be revie
wed
and approved by the registry. The 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 registry, that is provided by the employer of the mortgage loan originator or an entity which is affiliated with the mortgage loan originator by an agency contract, or any subsidiary or affiliate of such employer or entity.

(d)

Continuing education may be offered either in a classroom, online or by any other means approv
ed by the registry.

(e)

A lic
ensed mortgage loan originator:

(i)

Except as provided in W.S. 40
‑
14
‑
64
6
(b),
shall
only receive credit for a continuing education course in the year in
which the course is taken; and

(ii)

Shall not take the same approved course in the same
year
or successive years to meet the annual require
ments for continuing education.

(f)

A licensed mortgage loan originator who is an instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator
'
s own annual continuing education requirement at the rate of
two (
2
)
hours credit for every
one (
1
) hour taught.

(g)

A
n

individual
having successfully completed the education requirements approved by the registry in paragraphs (a)(i), (ii) and (iii) of this section for any state shall be accepted as credit towards completion of continuing education requirements in
Wyoming
.

(h)

A
n individual
meeting the requirements of W.S. 40
‑
14
‑
64
6
(a)(i) and (iii) may make up any deficiency in continuing education as establish
ed by rule of the
administrator
.

(j)

An individual licensed under
W.S. 40
‑
14
‑
641
after July 1, 2009 and who subsequently applies to be licensed again shall complete the continuing education requirements for the last year in which the license was held prior to issuance of a new or renewed license.

40
‑
14
‑
64
8
.

Authority to require license.

(a)

In addition to any other duties imposed upon the
administrator
by law, the
administrator
shall require mortgage loan originators to be licensed and registered through the registry.

In order to carry out this requirement the
administrator

may
participate in the registry.

For this purpose, the
administrator
may establish by rule any requirements as necessary
, including but not limited to:

(i)

Background chec
ks for:

(A)

Criminal history through
fingerprint or other databases;

(B)

C
ivil or administrative records;

(C)

Credit history; or

(D)

Any other information as deemed necessary by the
registry.

(ii)

The payment of fees to apply for or renew licenses through the registry;
and

(i
ii
)

Requirements for amending or surrendering a license or any other such activities as the
administrator
deems necessary for
participation in the registry.

40
‑
14
‑
64
9
.

Unique identifier; rulemaking
.

The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan applications forms, solicitations or advertisements, including business cards or websites, and any other documents as established by
rule of
the
administrator
.

40
‑
23
‑
124.

Loan originator licensing
;
registration
; rulemaking
.

(a)

An individual, unless specifically exempted under subsection (c) of this section, shall not engage in the business of a mortgage loan originator
for any

dwelling located in
Wyoming
w
ithout first obtaining and maintaining annually a license in accordance with this
act
.

Each licensed mortgage loan originator
shall
register with and maintain a valid unique identifier issued by the
registry.

(b)

In order to facilitate an orderly transition to licensing and minimize disruption in the marketplace, the effective date for subsection (a) of this section shall be
July 1, 2010.

(c)

An individual is
exempt from subsection (a) of this section
if he is
:

(i)

A r
egistered mortgage loan originator, when acting for an entity described in W.S. 40
‑
23
‑
102(a)(xx
x)(B)(I), (II) or (III);

(ii
)

An individual who offers or negotiates terms
of
a residential mortgage loan with or on behalf of a
n immediate
family m
ember of the individual
;

(iii)

An individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that serve
s
as a seller
'
s residence;

(iv)

A licensed attorney who negotiates 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;

(v)

An individual engaging solely in loan processor or underwriter activities, who does not represent to the public, through advertising or other means of communicating or providing information including the use of business cards, stationery, brochures, signs, rate lists or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.

(
d
)

A
loan processor or underwriter who is a
n independent contractor may not engage in
the
activities
of
a loan processor or underwriter unless
the
independent contractor
, loan processor or underwriter
obtains and maintains a license
pursuant to
subsection (a) of this section.

Each independent contractor
,
loan processor or underwriter licensed as a mortgage loan originator
shall
have and maintain a valid unique identifier issued by the
registry.

(
e
)

For the purposes of implementing an orderly and efficient licensing process the commissioner may establish licensing rules or regulations and interim procedures for licensing and acceptance of applications.

40
‑
23
‑
125.

Loan originator application
;
processing.

(a)

Applicants for a mortgage loan originator license shall apply in a form prescribed by the commissioner.

Each
application
form shall contain content as set forth by rule of the commissioner and may be changed or updated as necessary by the commissioner in order to carry out the purposes of this
act
.

(b)

In order to fulfill the purposes of this
act
, the commissioner
may
establish relationships or contracts with the
r
egistry or other entities designated by the
r
egistry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this
act
.

(c)

In connection with an application for licensing as a mortgage loan originator, the applicant shall, at a minimum, furnish to the
r
egistry information concerning the applicant
'
s identity, including:

(i)

Fingerprints for submission to the
federal b
ureau of
i
nvestigation, and any governmental agency or entity authorized to receive such information for a state, national and international criminal history background check; and

(ii)

Personal history and experience, including the submission of authorization for the
registry and the c
ommissioner to obtain:

(A)

An independent credit report obtained from a consumer reporting agency described in section 603(p) of the
Fair Credit Reporting Act; and

(B)

Information related to any administrative, civil or criminal findings by
any governmental jurisdiction.

(d)

For the purposes of this section and in order to reduce the points of contact which the
f
ederal
bureau of i
nvestigation may have to maintain for purposes of
paragraph
(c)(i)
of this section
and
subparagraph
(c)(ii)(B) of this section
,
the commissioner may use the
r
egistry as a channeling agent for requesting information from and distributing information to the
d
epartment of
j
ust
ice or any governmental agency.

(e)

For the purposes of this section and in order to reduce the points of contact which the
c
ommissioner may have to maintain for purposes of sub
paragraphs
(c)(ii)(A) and (B) of this section
,
the commissioner may use the
r
egistry as a channeling agent for requesting and distributing information to and from any source so directed by the c
ommissioner.

(f)

Each application submitted under subsection (a) of this section shall be accompanied by an application fee not to exceed three hundred dollars ($300.00), as established by
rule of
the commissioner. When an application for licensure is denied or withdrawn, the commissioner shall retain all fees paid by the applicant.

40
‑
23
‑
126.

Issuance of loan originator license.

(a)

The c
ommissioner
shall
not issue a mortgage loan originator license unless the
c
ommissioner makes at a
minimum the following findings:

(i)

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;

(ii)

The applicant has not been convicted of, or pled guilty or nolo contendere to, a fe
lony in a domestic, foreign
or military court:

(A)

D
uring the
seven (
7
)
year period preceding the date of the application for
licensing and registration; or

(B)

At any time preceding
the
date of application, if
the
felony involved an act of fraud, dishonest
y, or a breach of trust or money laundering;

(C)

A pardon of a conviction shall not be a conviction for the purposes of this paragraph.

(iii
)

The applicant has demonstrated fina
ncial responsibility, character
and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originato
r will operate honestly, fairly
and efficiently within the purposes of this
act;

(iv
)

T
he applicant has completed the
prelicensing
education requirement
pursuant to
W.S. 40
‑
23
‑
127;

(v)

The applicant has passed a written test that meets the test requirement
of
W.S. 40
‑
23
‑
128.

(b
)

For purposes of paragraph (a)(i
ii
) of this section, a person has shown that he is not fin
an
c
i
ally responsible when he has shown a disregard in the management of his own financial condition. A determination that an individual has not shown financial responsibility shall include, but not be limited to:

(
i
)

Having any outstanding judgment, except
a
judgment solely as a result of medical expenses;

(ii
)

Having any outstanding tax lien or other government lien;

(iii
)

Having any foreclosure within the past three (3) years;

(
iv
)

Having a p
attern of serious
ly
delinquent accounts within the past three (3) years.

(
c
)

Upon written request, an applicant is entitled to a hearing on the question of his qualifications for a license if:

(i)

The commissioner has notified the applicant in writing that his application has been denied, or objections to the application have been filed with the commissioner;

(ii)

The commissioner has not issued a license within sixty (60) days after a complete application for the license was filed.

(
d
)

If a hearing is held, the applicant and those filing objections shall reimburse, pro rata, the commissioner for his reasonable and necessary expenses incurred as a result of the hearing. Notwithstanding any provision under the Wyoming Administrative Procedure Act, a request for hearing shall not be made more than fifteen (15) days after the applicant has received notification by certified mail that the application has been denied and stating in substance the commissioner
'
s finding supporting denial of the application or that objections have been filed and the substance thereof.

40
‑
23
‑
127.

Prelicensing
and
relicensing
education of loan originators.

(a)

In order to meet the
prelicensing
education requirement referred to in W.S. 40
‑
23
‑
12
6
(a)(
i
v), a person shall complete at least
twenty (
20
)
hours of education approved in accordance with subsection (b) of this section
, which shall include at least:

(i)

Three (
3
)
hours of
federal law and regulations related to mortgage origination;

(ii)

Three (3)
hours of ethics, which shall include instructio
n on fraud, consumer protection and fair lending issues; and

(iii)

Two (2)
hours of training related to lending standards for the nontraditiona
l mortgage product marketplace.

(b)

For purposes of subsection (a) of this section,
prelicensing
educ
ation courses shall be reviewed
and approved by the
r
egistry.
The 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
r
egistry, that is provided by the employer of the applicant or an entity which is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of such employer or entity.

(d)

Prelicensing
education may be offered either in a classroom, online or by any other means approved by the
r
egistry.

(e)

T
he
prelicensing
education requirements approved by the
r
egistry in
paragraphs
(a)(i), (ii) and (iii)

of this section for any state shall be accepted as credit towards completion of
prelicensing
education requirements in
Wyoming
.

(f)

An individual licensed under
W.S. 40
‑
23
‑
124
after July 1, 2009 and who subsequently applies to be licensed again:

(i)

Shall not have to complete
prelicensing
education requirements;

(ii)

Shall have completed all the continuing education requirements pursuant to W.S. 40
‑
23
‑
130.

40
‑
23
‑
128.

Testing of
mortgage loan o
riginators.

(a)

In order to meet the written test requirement
under

W.S. 40
‑
23
‑
12
6
(a)(v), an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the
r
egistry and administered by a test provider approved by the
r
egistry
.

(b)

A written test shall not be treated as a qualified written test for purposes of subsection (a) of this section unless the test adequately measures the applicant
'
s knowledge and comprehension in approp
riate subject areas, including:

(i)

Ethics;

(ii)

Federal law and regulation pert
aining to mortgage origination;

(iii)

Wyoming
law and regulation pertaining to mortgage origination; and

(iv)

Federal and
Wyoming

law and regulation, including instruction on fraud, consumer protection, the nont
raditional mortgage marketplace and fair lending issues.

(c)

Nothing in the section shall prohibit a test provider from providing a test at the location of the employer of the applicant
,

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)

An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than
seventy-five
percent
(75%) correct answers to questions.

(
e
)

An individual may retake a test
three (
3
)
times with each
test
taking occurring at least
thirty (
30
) days after the preceding test.

(
f
)

After failing
three (
3
)
tests, an individual shall wait at least
six (
6
)
months befo
re taking the test again.

(g)

A licensed mortgage loan originator who fails to maintain a valid license for at least five (5) years shall retake the written test. Any time the individual spends working as a registered mortgage loan originator shall not be counted against this five (5) year period.

40
‑
23
‑
129.

Standards for loan originator license renewal
; rulemaking
.

(a)

The minimum standards for license renewal for mortgage loan originato
rs shall include the following:

(i)

The mortgage loan originator continues to meet the minimum standards for license issuance under W.S. 40
‑
23
‑
12
6(a)(i) through (v);

(ii)

The mortgage loan originator has satisfied the annual continuing education requireme
nts described in W.S. 40
‑
23
‑
130;

(iii)

The mortgage loan originator has paid the license

renewal fee not to exceed three hundred dollars ($300.00), as established by
rule of
the commissioner
.

(b)

Each mortgage loan originator license shall expire on December 31. The license shall be renewed annually by satisfying the minimum standards for license renewal under subsection (a) of this section not less than thirty (30) days before the stated expiration date.
The commissioner may establish rules for the reinstatement of expired licenses

consistent with the standards established by the registry.

40
‑
23
‑
130.

Continuing education for mortgage loan originators
; rulemaking
.

(a)

In order to meet the annual continuing education requ
irements referred to in W.S. 40
‑
23
‑
1
29
(a)(ii), a licensed mortgage loan originator shall complete at least
eight (
8
)
hours of education approved in accordance with subsection (b) of this section
, which shall include at least:

(i)

Three

(
3
)
hours of
f
ederal law and regulations
relating to mortgage origination;

(ii)

Two (
2
)
hours of ethics, which shall include instruction on fraud, consumer protection
and fair lending issues; and

(iii)

Two (
2
)
hours of training related to lending standards for the nontraditiona
l mortgage product marketplace.

(b)

For purposes of section (a) of this section, continuing educ
ation courses shall be reviewed
and approved by the
r
egistry.
The r
eview 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
r
egistry, that is provided by the employer of the mortgage loan originator or an entity which is affiliated with the mortgage loan originator by an agency contract, or any subsidiary 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
registry.

(e)

A lic
ensed mortgage loan originator:

(i)

Except as provided in W.S. 40
‑
23
‑
1
29
(b),
shall
only receive credit for a continuing education course in the year in
which the course is taken; and

(ii)

Shall
not take the same approved course in the same or successive years to meet the annual require
ments for continuing education.

(f)

A licensed mortgage loan originator who is an instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator
'
s own annual continuing education requirement at the rate of
two (
2
)
hours
of
credit for every
one (
1
) hour taught.

(g)

A
n individual
having successfully completed the education requirements approved by the
r
egistry in
paragraphs
(a)(i), (ii) and (iii) of this section for any state shall be accepted as credit towards completion of continuing education requirements in
Wyoming
.

(
h
)

A
n individual
meeting the requirements of W.S. 40
‑
23
‑
1
29
(a)(i) and (iii) may make up any deficiency in continuing education as establish
ed by rule of the commissioner.

(j)

An individual licensed under
W.S. 40
‑
23
‑
124
after July 1, 2009 and who subsequently applies to be licensed again shall complete the continuing education requirements for the last year in which the license was held prior to issuance of a new or renewed license.

40
‑
23
‑
13
1
.

Mortgage call reports.

Each licensee shall submit to the
re
gistry reports of condition, which shall be in such form and shall contain
all
information as
required by
the
registry
.

40
‑
23
‑
13
2
.

Report to
the r
egistry.

T
he commissioner
shall
regularly report violations of this
act
, as well as enforcement actions and other relevant information, to the
r
egistry subject to the provisions contained in W.S.
40
‑
23
‑
112
.
The commissioner shall establish by rule a process where a mortgage loan originator may challenge information entered into the registry by the commissioner.

40
‑
23
‑
13
3
.

Unique identifier; rulemaking
.

The unique identifier of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan applications forms, solicitations or advertisements, inclu
ding business cards or websites
and any other documents as established by rule of the commissioner.

Section 2.

W.S. 7
‑
19
‑
106(a) by creating a new paragraph (xx), 7
‑
19
‑
201(a) by creating a new paragraph (xiii), 40
‑
14
‑
120(a)
(i), (ii) and by creating a new paragraph (iii)
, 40
‑
14
‑
121(a)(intro), 40
‑
14
‑
140(a)(xii)
,
by creating a new paragraph (xx) and by renumbering (xx) as (xxi), 40
‑
14
‑
142(a) by creating new paragraphs (lx) through (lxxvi) and by renumbering (lx) as (lxxvii), 40
‑
14
‑
204(a)(v), 40
‑
14
‑
304(a)(iv), 40
‑
14
‑
633, 40
‑
14
‑
634
by creating new subsections (m) and (n)
, 40
‑
14
‑
635 by creating a new subsection (h)
,
40
‑
14
‑
636, 40
‑
23
‑
102(a)
(v),
(vi), (ix)
,
(xv), by creating new paragraphs (xviii) through (xxxiii) and by
amending and
renumbering (xviii) as (xxxiv), 40
‑
23
‑
103(a)(ii), 40
‑
23
‑
104, 40
‑
23
‑
107(b)(ii)
,
(iv),
(vi) and by creating a new paragraph (vii), 40
‑
23
‑
109(a), 40
‑
23
‑
110, 40
‑
23
‑
112(b), by creating new subsections (f) through (j) and by renumbering (f) as (k) and 40
‑
23
‑
118 by creating a new subsection (d) are amended to read:

7
‑
19
‑
106.

Access to, and dissemination of, information
.

(a)

Criminal history record information shall be disseminated by criminal justice agencies in this state, whether directly or through any intermediary, only to:

(x
x
)

The
state banking commissioner
for purposes of licensing and
registration pursuant to W.S. 40
‑
14
‑
642, 40
‑
23
‑
103 and 40
‑
23
‑
125.

7
‑
19
‑
201.

State or national criminal history record information
.

(a)

The following persons shall be required to submit to fingerprinting in order to obtain state and national criminal history record information:

(xiii)

Mortgage lenders, mortgage brokers, mortgage loan originators and persons identified in W.S. 40
‑
23
‑
107(a)(iii), as necessary to perform the background checks required by W.S. 40
‑
14
‑
642(c)(i), 40
‑
23
‑
103(a)(viii) and 40
‑
23
‑
125(c)(i).

40
‑
14
‑
120.

Territorial application.

(a)

Except as otherwise provided in this section, this act applies to consumer credit transactions made in this state. For purposes of this act, a consumer credit transaction is made in this state if:

(i)

A signed writing evidencing the obligation or offer of the consumer is received by the creditor in this state;

or

(ii)

The creditor induces consumers who are residents of this state to enter into credit transactions by a continuous and systematic solicitation either personally or by mail and the goods or money are delivered in this state and payment is made from this state
;
.

or

(iii)

The credit transaction is secured by a dwelling, as defined in W.S. 40
‑
14
‑
640(a), located in
Wyoming
.

40
‑
14
‑
121.

Exclusions.

(a)

Except as required by W.S. 40
‑
14
‑
641, t
his act does not apply to:

40
‑
14
‑
140.

General definitions.

(a)

In addition to definitions appearing in subsequent articles, in this act:

(xii)

"
Organization
"
means a
sole proprietorship, limited liability company,

corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative,
or
association
or other entity, public or private
;

(
xx
)

"
Licensee
"
means a
n organization
licensed under this
act
;

(xx)
(xxi)

"
This act
"
means W.S. 40
‑
14
‑
101 through 40
‑
14
‑
702.

40
‑
14
‑
142.

Index of definitions.

(a)

Definitions in this act and the sections in which they appear are:

(
lx
)

"
Channeling agent
"
–
W.S.

40
‑
14
‑
6
40
(a)(
i
);

(
lxi
)

"
Clerical or support duties
"
–
W.S.

40
‑
14
‑
6
40
(a)(
ii
);

(lxii)

"
Depository institution
"
–
W.S.

40
‑
14
‑
6
40
(a)(
iii
);

(lxiii)

"
Dwelling
"

– W.S.

40
‑
14
‑
6
40
(a)(
iv
);

(lxiv)

"
Federal banking agency
"
–
W.S.

40
‑
14
‑
6
40
(a)(
v
);

(
lxv
)

"
Immediate family member
"
– W.S. 40
‑
14
‑
6
40(
a)(
vi
)
;

(
lxvi
)

"
Individual
"
– W.S. 40
‑
14
‑
6
40(
a)(
vii
)
;

(
lxvii
)

"
Licensee
"
– W.S. 40
‑
14
‑
1
40(
a)(
xx
)
;

(
lxviii
)

"
Loan processor or underwriter
"

–
W.S.

40
‑
14
‑
6
40
(a)(
viii
);

(
lxix
)

"
Mortgage loan originator
"
–
W.S.

40
‑
14
‑
6
40
(a)(
ix
);

(
lxx
)

"
Nontraditional mortgage product
"
–
W.S.

40
‑
14
‑
6
40
(a)(
x
);

(
lxxi
)

"
Real estate brokerage activity
"

– W.S.

40
‑
14
‑
6
40
(a)(
xi
);

(
lxxii
)

"
Registered mortgage loan originator
"

–
W.S.

40
‑
14
‑
6
40
(a)(
xii
);

(
lxxiii
)

"
Registr
y
"

–
W.S.

40
‑
14
‑
6
40
(a)(
xiii
);

(
lxxiv
)

"
Residential mortgage loan
"
–
W.S.

40
‑
14
‑
6
40
(a)(
xiv
);

(
lxxv
)

"
Timeshare plan
"
–
W.S.

40
‑
14
‑
6
40
(a)(
xv
);

(
lxxvi
)

"
Unique identifier
"
–
W.S.

40
‑
14
‑
6
40
(a)(
xvi
);

(lx)
(lxxvii)

"
This act
"

‑
means W.S. 40
‑
14
‑
101 through 40
‑
14
‑
702.

40
‑
14
‑
204.

Definition of
"
consumer credit sale
"
.

(a)

Except as provided in subsection (b) of this section,
"
consumer credit sale
"
is a sale of goods, services or an interest in land in which:

(v)

With respect to a sale of goods or services, the amount financed does not exceed fifty thousand dollars ($50,000.00) or the debt is secured by
personal property used or expected to be used as the principal
a

dwelling
,

of the buyer

as defined in W.S. 40
‑
14
‑
640(a)(iv), located in Wyoming
.

40
‑
14
‑
304.

Definition of
"
consumer loan
"
.

(a)

Except with respect to a loan primarily secured by an interest in land,
"
consumer loan
"
is a loan made by a person regularly engaged in the business of making loans in which:

(iv)

Either the principal does not exceed fifty thousand dollars ($50,000.00) or the debt is secured by an interest in land or
by personal property used or expected to be used as the principal

a
dwelling
,

place of the debtor

as defined in W.S. 40
‑
14
‑
640(a)(iv), located in Wyoming
.

40
‑
14
‑
633.

Crediting of monies.

All fees and other monies received by the administrator under the provisions of this act shall be deposited by the administrator with the state treasurer and credited to the consumer credit administration account
,

except the amount paid for data processing by a national mortgage licensing system and database
.

The funds deposited in the account under this act shall be subject to appropriation by the legislature to the administrator and shall be expended only to carry out the duties of the administrator. Expenditures shall be made from the account by warrants drawn by the state auditor, upon vouchers issued and signed by the administrator.

40
‑
14
‑
634.

License required; application; fee; conditions and execution; license nontransferable; display; renewal.

(m)

A license shall not be issued under subsection (b) of this section if t
he applicant has been convicted of, pled guilty or nolo contendere to,
a felony in a domestic, foreign
or military court during the
seven (
7
)
year period preceding the date of the application for licensing, or at any time preceding such date of application if such felony involved an act of fra
ud, dishonesty, breach of trust or money laundering
.

(n)

A license may be issued at the discretion of the administrator under subsection (b) of this section if t
he applicant has been convicted of, pled guilty or nolo contendere to a misdemeanor in a domestic, foreign or military court involving an act of fraud, dishonesty, breach of trust or money laundering.

40
‑
14
‑
635.

Revocation or suspension of license.

(
h
)

For purposes of this section,
"
licensee
"
shall also mean a licensed mortgage loan originator pursuant to
W.S. 40
‑
14
‑
64
1
.

40
‑
14
‑
636.

Records; confidentiality.

(a)

For purposes of this section,
"
licensee
"
shall also mean a licensed mortgage loan originator pursuant to
W.S. 40
‑
14
‑
640
and an organization employing or contracting with a mortgage loan originator
.

(b)

Every licensee shall maintain records in a manner that will enable the administrator to determine whether the licensee is complying with the provisions of this act. The administrator may by rule, and in accordance with W.S. 40
‑
14
‑
606(c), specify the manner in which records are to be made available. The records need not be kept in the place of business of the licensee, if the administrator is given free access to the records wherever located. The records pertaining to any transaction governed by this act need not be preserved for more than two (2) years after making the final entry relating to the transaction. In the case of a revolving loan account the two (2) years is measured from the date of each entry.

(c)

Except as provided in subsections (d), (e) and (j) of this section, all information or reports obtained by the
administrator
from an applicant or licensee are confidential.

(d)

Except as provided in
P.L.
110-289,
section
15
12, the requirements under any f
ederal or
state law regarding
the privacy or confidentiality of any information or material provided to the
r
egistry, and any privilege arising under
f
ederal or
s
tate law
,
including the rules of any
federal or s
tate court
,
with respect to such information or material, shall continue to apply to such information or material after the information or material has been
disclosed to the re
gistry.

Such information and any other confidential material obtained by the
administrator
may be shared with all
s
tate and
f
ederal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by
f
ederal
or
state
law
.

(e)

The
administrator
may enter into cooperative, coordinating or information sharing agreements with any other supervisory agency or any organization affiliated with or representing one (1) or more supervisory agencies with respect to the periodic examination or other supervision of any office in Wyoming of an out-of-state licensee, and the
administrator
may accept
the
parties
'
reports of examination and reports of investigation in lieu of conducting his own examinations or investigations.

(f)

Information or material that is subject to a privilege or confidentiality
protection
under subsection (d) of this section shall not be subject to:

(i)

Disclosure under any
f
ederal or
s
tate law governing the disclosure to the public of information held by an officer or agency of the
f
ederal
g
overnment or the respective
s
tate; or

(ii)

Subpoena
,
discovery or admission into evidence, in any private civil action or administrative process, unless with respect to
any privilege held by the r
egistry with respect to such information or material, the person to whom such information or material pertains waives

that privilege, i
n whole or in part
.

(g)

Any
Wyoming
law relating
to the disclosure of confidential supervisory information or any information or material described in subsection (
d
) of this section that is inconsistent with subsection (
d
) of this section shall be superceded by the requirements of this section.

(h)

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 loan originator that is included in the
r
egistry for access by the public.

(j)

The
administrator
may enter into contracts with any supervisory agency having concurrent jurisdiction over a
Wyoming
licensee pursuant to this
act
to engage the services of the agency
'
s examiners at a reasonable rate of compensation. Any contract
under this subsection
shall not be subject to the provisions of W.S. 9
‑
2
‑
1016(b).

(k)

This section does not prohibit the
administrator
from disclosing to the public a list
of persons licensed under this act
.

40
‑
23
‑
102.

Definitions.

(a)

As used in this act:

(v)

"
Licensee
"
means a
person

company
licensed under this act
as a mortgage broker or a mortgage lender
;

(vi)

"
Mortgage broker
"
means any
person
, other than those exempt under W.S. 40
‑
23
‑
105
company
, who for compensation, or in the expectation of compensation, assists a person in obtaining or applying to obtain a residential mortgage loan or holds
himself

itself
out as being able to assist a person in obtaining or applying to obtain a residential mortgage loan;

(ix)

"
Mortgage lender
"
means any
person
, other than those exempt under W.S. 40
‑
23
‑
105
company
, who makes residential mortgage loans to borrowers or holds
himself

itself
out as able to make mortgage loans;

(xv)

"
Residential mortgage loan
"
means a first mortgage loan made primarily for personal, family or household use
and primarily secured by a security interest on residential real property

that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling or residential real estate
in Wyoming
upon which is constructed or intended to be constructed a dwelling
;

(xviii)

"
Channeling agent
"
mean
s
the third party
licensing system that gathers the application information and distributes it to
Wyoming
for review
for
the approval
or denial decision;

(xix)

"
C
lerical or support duties
"
m
eans:

(
A
)

T
he receipt, collection, distribution and analysis of information common for the processing or underwriting of a
residential mortgage loan; and

(
B
)

C
ommunicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.

(
xx
)

"
Company
"
means a sole proprietorship, partnership, corporation, limited liability company or other entity, public or private;

(
xxi
)

"
Depository institution
"
means a company
as defined in 12 U.S.C. 1813 of the f
ederal
deposit i
nsurance
a
ct,
and
includ
es
any credit union
;

(
xxii
)

"
D
w
e
lling
"
means

a residential structure that contains one
(1)
to four
(4)
units, whether or not that structure is attached to real property.

"
Dwelling
"
,

if
it
is used as a residence
,
includes an individual condominium unit, cooperative unit, mobile
home and trailer;

(
xxiii
)

"
Federal banking agenc
y
"
means the
board of g
overnors of the
f
ederal
reserve s
ystem, the
comptroller of the currency, the director of the o
ffice of
thrift s
upervision, the
n
ational
c
redit
u
nion
a
dministration
or
the
f
ederal
d
eposit
i
nsurance
c
orporation
;

(xxiv)

"
Immediate
family member
"
means a spouse, child, sibling, parent, grandparent, grandchild
,
stepparent, stepchild
, stepsibling
and
any
adoptive relationship
included in this paragraph
;

(xxv)

"
Individual
"
means a natural person;

(xxvi)

"
L
oan processor or underwriter
"
means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a license
e,
or
an exempt person
under
W.S. 40
‑
23
‑
105;

(x
xvii
)

"
Mortgage loan originator
"
:

(A)

M
eans an individual who
for compensation or gain or in the expectation of compensation or gain:

(
I
)

Takes a residential mortgage loan application;
or

(
II
)

Offers or negotiates
the
terms
of a residential mortgage loan.

(
B
)

Shall not
include any individual
engaged solely as a loan processor or underwriter except as

otherwise described in
W.S. 40
‑
23
‑
124(d);

(
C)

Shall n
ot include a person
who
only performs real estate brokerage activities and is licensed or registered in accordance with
Wyoming
law, unless the person is compensated by a lender, a mortgage broker or other mortgage loan originator or by any agent of such
lender, mortgage broker
or othe
r mortgage loan originator; and

(
D
)

Shall
not include a person solely involved in extensions of cre
dit relating to
timeshare plans
.

(xxvi
i
i)

"
Nontraditional mortgage product
"
means any mortgage product other than a
thirty (
30
)
year fixed rate mortgage
;

(xxix)

"
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 bro
ker for a buyer, seller, lessor or lessee of real property;

(
B
)

Arranging meetings or communicating with any
part
y
interested in th
e sale, purchase, lease, rental or exchange of real property;

(
C
)

Negotiating, on behalf of any party, any portion of a contract relating to th
e sale, purchase, lease, rental
or exchange of real prop
erty, unless the negotiating relates to
the financing
of these transactions,

which shall then constitute engaging in the business as a
mortgage loan originator
;

(
D
)

Engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broke
r under any applicable law; and

(
E
)

Offering to engage in any activity, or act in any capacity, described in sub
paragraph
(
A
), (
B
), (
C
) or (
D
) of this
paragraph
.

(xxx)

"
R
egistered mortgage loan originator
"

means any individual who
:

(
A
)

Is registered with, and maintains a unique identifier through, the
r
egistry
; and

(
B
)

Meets the definition of mortgage loan originator and is an employee of
:

(
I
)

A depository institution;

(
II
)

A subsidiary that is
:

(
1
)

Owned and controlled b
y a depository institution; and

(2)

Regulated by a
federal banking agency; or

(
III
)

A
n institution regulated by the
f
arm
c
redit
a
dministratio
n.

(x
xxi
)

"
Registry
"
means the n
ationwide
m
ortgage
l
icensing
s
ystem and
r
egistry
which is
a mortgage licensing system developed and maintaine
d by the c
onference of
s
tate
b
ank
supervisors and the A
merican
a
ssociation of
r
esidential
m
ortgage
r
egulators for the licensing and registration of
mortgage lenders, mortgage brokers and
mortgage loan originators
;

(xx
x
ii
)

"
T
imeshare
plan
"
means
as defined in
11 U.S.C. §
101(53D)
;

(xxxiii)

"
Unique identifier
"
means a number or other identifier assigned by protocols established by the registry;

(xviii
)
(
xxxiv
)

"
This act
"
means W.S. 40
‑
23
‑
101 through
40
‑
23
‑
123

40
‑
23
‑
133
.

40
‑
23
‑
103.

Powers and duties of commissioner.

(a)

In addition to any other powers and duties imposed upon the commissioner by law, the commissioner shall:

(ii)

Order any
licensee

mortgage broker, mortgage lender or mortgage loan originator
to cease any activity or practice which the commissioner deems to be deceptive, dishonest, a violation of state or federal laws or regulations or unduly harmful to the interests of the public;

40
‑
23
‑
104.

License requirements.

(a)

With the exception of those persons exempt pursuant to W.S. 40
‑
23
‑
105, on and after July 1, 2005, no
person

company
shall engage in mortgage lending activities or mortgage brokering activities without first obtaining a license in accordance with this act.

(b)

A
person

company
engaged in mortgage lending or mortgage brokering activities
who advertises, offers or provides services to
Wyoming
residents through any medium including, but not limited to, internet or other electronic means

with any dwelling located in
Wyoming
shall first obtain a license in accordance with this act.

40
‑
23
‑
107.

Application for license to do business as a mortgage lender or mortgage broker.

(b)

An application for license may be granted if the commissioner finds:

(ii)

The applicant has not been convicted of
, pled guilty or nolo contendere to,
a felony
or misdemeanor involving any aspect of the mortgage lending business, breach of trust or fraudulent or dishonest dealing

in a domestic, foreign or military court during the seven (7) year period preceding the date of the application for licensing, or at any time preceding such date of application if such felony involved an act of fraud, dishonesty, breach of trust or money laundering
;

(iv)

The applicant has not filed an application for a license which is false or misleading with respect to any material fact;
and

(vi)

The applicant has provided information on the application as required by the commissioner pursuant to subsection (a) of this section
;
.

and

(vii)

The applicant has not been convicted of, pled guilty or nolo contendere to a misdemeanor in a domestic, foreign or military court involving an act of fraud, dishonesty, breach of trust or money laundering.

40
‑
23
‑
109.

L
icense renewal and annual report.

(a)

Each
mortgage broker and mortgage lender

license issued under this act shall expire on December 31. The license shall be renewed annually not less than thirty (30) days before the stated expiration date. The renewal fee for each license shall not exceed one thousand dollars ($1,000.00) for the home office location and an amount not to exceed one hundred dollars ($100.00) for each additional location, as set by rule of the commissioner.

40
‑
23
‑
110.

Surety bonds.

(a)

All licensees shall maintain a surety bond to the state of
Wyoming
in accordance with this section.
The surety bond shall be used to cover individual loan originators employed or under contract with a licensee.

The bond to be maintained shall be in
the
amount
:

(i)

Until December 31, 2009,
of
twen
ty-five thousand dollars ($25,000.00). This amount shall be increased by an additional sum of ten thousand dollars ($10,000.00) for each licensed office
;
.

(ii)

Effective January 1, 2010, as
established
by rule of the commissioner based upon the volume of business activity transacted by the licensee under this act
.

(b)

The
surety
bond shall be a continuing obligation of the issuing surety. The surety
'
s liability under the bond for any claims made under the bond either individually or in the aggregate shall in no event exceed the face amount of the bond issued. The bond shall be issued by a surety authorized to do business in the state of
Wyoming
. The bond, including any and all riders and endorsements executed subsequent to the effective date of the bond, shall be placed on file with the commissioner.

(b)
(c)

In the event that a licensee or person employed by or under contract with a licensee has violated any of the provisions of this act or of a rule or order lawfully made pursuant to this act, or federal law or regulation pertaining to the mortgage lending or mortgage brokering, and has damaged any person by such violation, then the bond shall be forfeited and paid by the surety to the state of Wyoming for the benefit of any person so damaged, in an amount sufficient to satisfy the violation or the bond in its entirety if the violation exceeds the amount of the bond.

(c)
(d)

Surety bonds shall remain effective continuously until released in writing by the commissioner. If a bond has not been previously released by the commissioner, the bond shall expire two (2) years after the date of the surrender, revocation or expiration of the license.

40
‑
23
‑
112.

Records; confidentiality of records; exception.

(b)

Except as provided in
subsection (c)

subsections (c) through (f)
of this section, all information or reports obtained by the commissioner from an applicant or licensee are confidential.

(f)

Except as provided in
P.L.
110-289, section 1512, the requirements under any federal law or
state
law regarding the privacy or confidentiality of any information or material provided to the registry, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to such information or material, shall continue to apply to such information or material after the information or material has been disclosed to the registry. Such information and any other confidential material obtained by the commissioner may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by federal law or any
state law.

(g)

Information or material that is subject to a privilege or confidentiality under subsection (f) of this section shall not be subject to:

(i)

Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the federal government or the respective state; or

(ii)

Subpoena, discovery or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the registry with respect to such information or material, the person to whom such information or material pertains waives that privilege, in whole or in part.

(h)

Any
Wyoming
law relating
to the disclosure of confidential supervisory information or any information or material described in subsection (f) of this section that is inconsistent with subsection (f) of this section shall be superceded by the requirements of this section.

(j)

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, any mortgage loan originator that is included in the registry for access by the public.

(f)
(k)

This section does not prohibit the commissioner from disclosing to the public a list of persons licensed under this act.

40
‑
23
‑
118.

License suspension or revocation.

(d)

For purposes of this section,
"
licensee
"
shall also mean a licensed mortgage loan originator pursuant to W.S. 40
‑
23
‑
124.

Section 3.

W.S. 40
‑
23
‑
105(a)(v)
is repealed.

Section 4.

This act is effective July 1, 2009.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1