1. (a) An application to surrender a license as a student loan servicer shall be filed on Form(s) MU1, MU2, or MU3, through NMLS, in accordance with its procedures for transmission to the Commissioner. A licensee shall amend every branch office application Form MU3.

2. (b) Subject to subdivision (c) hereof, prior to surrendering its license, the Commissioner may require a student loan servicer to file a plan for approval by the Commissioner, containing the licensee's detailed proposal for the orderly closing out of its student loan servicing business. At a minimum, the plan shall contain the following:

   1. (1) A detailed description of the plan to transfer the licensee's existing servicing portfolio, including the time frame within which the transfer will be completed.
   2. (2) The time frame required for payout to the lender of all payments received from the borrowers, or the time frame required for transfer of payments received to another servicer.
3. (c) As an alternative to the requirements of subdivision (b), a servicer may satisfy this rule by providing the Commissioner the termination requirements of the lender(s) for which servicing has ceased, and evidence of satisfaction of such requirements.

Note: Authority cited: Section 28106, Financial Code. Reference: Sections 28124 and 28150, Financial Code.

History

1. New article 7 (section 2044.5) and section filed 3-28-2019; operative 3-28-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).