TITLE XXXV BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS
CHAPTER 397-A LICENSING OF NONDEPOSITORY MORTGAGE BANKERS, BROKERS, AND SERVICERS
Section 397-A:18
397-A:18 Order to Show Cause. –
I. The commissioner may issue an order requiring a person to whom any license has been granted or any person under the commissioner's jurisdiction to show cause why the license should not be revoked or suspended, or penalties imposed, or both, for violations of this chapter.
II. (a) The order shall give notice of the facts or conduct constituting the basis for the order and shall afford the opportunity for a hearing.
(b) Valid delivery of such order shall be by hand or certified mail to an officer, director, 5 percent or more owner, member, partner, or legal representative of the licensee or respondent at the last known address of the principal office.
(c) A hearing, if requested shall be scheduled within 10 calendar days after a written request for such hearing is received by the commissioner.
(d) The commissioner shall enter an order making such disposition of the matter as the facts require within 20 calendar days of submission of the evidence into the record.
(e) If the licensee or respondent fails to appear at a hearing after being duly notified, or cannot be located after a reasonable search, such person shall be deemed in default and the proceeding may be decided against the person upon consideration of the order to show cause or other order, the allegations of which may be deemed to be true.
(f) If the person to whom an order to show cause or other order is issued fails to request a hearing within 30 calendar days of receipt or valid delivery of the order and no hearing is ordered by the commissioner, then such person shall be deemed in default and the order shall, on the thirty-first day, become permanent, and shall remain in full force and effect until and unless later modified or vacated by the commissioner, for good cause shown.
III. If the commissioner finds that protection of consumers, lenders, or investors requires emergency action and incorporates a finding to that effect in his or her order, the commissioner may order immediate suspension of a license pending an adjudicative proceeding in accordance with RSA 541-A:30, III. The department shall commence the hearing not later than 10 business days after the date of the order suspending the license. The licensee may waive the 10-day commencement requirement to allow for additional time to prepare for the hearing. If the licensee waives the requirement, the license shall remain suspended until the completion of the hearing. A record of the proceeding shall be made by a certified court reporter provided by the department. Unless expressly waived by the licensee, the commissioner's failure to commence an adjudicative proceeding within 10 business days shall mean that the suspension order is automatically vacated. The commissioner shall not again suspend the license for the same conduct which formed the basis of the vacated suspension without granting the licensee prior notice and an opportunity for an adjudicative proceeding.
IV. If a licensee is a partnership, association, corporation, or entity however organized, it shall be sufficient cause for the suspension or revocation of a license that any officer, director, or trustee of a licensed association or corporation or any member of a licensed partnership has so acted or failed to act on behalf of said licensee as would be cause for suspending or revoking a license to such party as an individual. Each licensee shall be responsible for supervision of its branch offices and for the acts of any or all of its employees, agents, and originators while acting as its agent if such licensee, after actual knowledge of said acts, retained the benefits, proceeds, profits, or advantages accruing from said acts or otherwise ratified said acts.
V. If the commissioner finds that any licensee or applicant for license is no longer in existence or has ceased to do business as a mortgage broker, mortgage banker, mortgage servicer, or mortgage originator, or cannot be located after reasonable search, the commissioner may by order revoke the license, impose penalties, or deny the application.
VI. An action to enforce any provision of this chapter shall be commenced within 6 years after the date on which the violation occurred.
Source. 2016, 289:1, eff. Aug. 20, 2016. 2019, 36:17, eff. May 15, 2019.