23 CAR § 301-1331 – Licensure of individuals — Loan officer, mortgage broker, mortgage banker, or mortgage servicer

(a) A licensee may agree in writing to allow the Securities Commissioner or the State Securities Department staff additional time after withdrawal becomes effective in which to investigate or examine facts or mortgage loan activities, thus extending the time limitation in which a suspension or revocation proceeding can be instituted.
(b)
1. (1) When the staff or the commissioner learns, through examination or otherwise, of an applicant’s or licensee’s possible failure to comply with the Fair Mortgage Lending Act, Arkansas Code § 23-39-501 et seq., or this part, or when it is determined that the applicant or licensee might be subject to one of the provisions set forth in Arkansas Code § 23-39-514(a), or a cancellation of registration pursuant to Arkansas Code § 23-39-514(d), the staff shall:
  1. (A) Notify such applicant or licensee of the alleged violation or action; and
  2. (B) Set a period of time in which the applicant or licensee must show compliance.
2. (2)
  1. (A) If the applicant’s or licensee’s response to the staff’s letter is deemed not to show compliance with the act or this part or shows the applicant or licensee to be subject to Arkansas Code § 23-39-514(d), a pleading may be filed by the staff with the commissioner asking that the matter be set for a hearing.
  2. (B) The sending of such a letter shall not be deemed to be the institution of a proceeding.
(c) If the staff files a pleading with the commissioner or the commissioner summarily suspends or postpones a license, the applicant or licensee, as well as the employer or prospective employer if the applicant or licensee is a loan officer, shall be promptly served with a copy of the pleading or order.
(d)
1. (1) If the commissioner issues an order which imposes a suspension, revocation, or cancellation of the license of a person or bars that person from further association with any licensee, the licensee shall not allow that person to remain associated with it in any capacity whatsoever, including clerical or ministerial functions.
2. (2) When an individual is suspended, a licensee, in addition to the above, shall not pay or credit any salary, commission, profit, or other remuneration which results directly or indirectly from any mortgage loan activity which that individual might have earned during the period of suspension.