Section 750IAC9-3-11. Suspension or revocation of license

   (a) The department may issue to a person licensed as a mortgage loan originator to engage in a mortgage transaction an order to show cause why the person's license should not be revoked or suspended for a period determined by the department.

  (b) The order must:

(1) State:

(A) The place and time for a meeting with the department that is not less than ten (10) days after the date of the order.

(B) A description of the contemplated action.

(C) A statement of the facts or conduct supporting the issuance of the order.

(2) Be accompanied by a notice to the licensee that the licensee shall have a reasonable opportunity to be heard and to show at the meeting the licensee's compliance with the lawful requirements for retention of the license.

  (c) After the meeting, the department may revoke or suspend the license if the department finds that:

(1) the licensee has repeatedly and willfully violated:

(A) this article or any order, policy, or guidance adopted or issued; or

(B) any other state or federal law, regulation, or rule applicable to a mortgage transaction;

(2) the licensee does not meet the licensing qualifications contained in section 2 of this rule;

(3) the licensee obtained the license for the benefit of, or on behalf of, a person who does not qualify for a license;

(4) the licensee knowingly or intentionally made material misrepresentations to, or concealed material information from, the department; or

(5) facts or conditions exist that would clearly have justified the department in refusing to grant a license had the facts or conditions been known to exist at the time the application for the license was made.

  (d) Whenever the department revokes or suspends a license, the department shall enter an order to that effect and notify the licensee of the revocation or suspension, the duration of the suspension, the procedure for appealing the revocation or suspension under IC 4-21.5-3, and such other terms and conditions relating to the revocation or suspension of the license. Not later than five (5) days after an order is entered to suspend or revoke a license, the department shall deliver to the licensee a copy of the order and the findings supporting the order.

  (e) Any person holding a license to engage in a mortgage transaction as a mortgage loan originator may relinquish the license by notifying the department in writing of the relinquishment. However, a relinquishment under this subsection does not affect the person's liability for acts previously committed and coming within the scope of this article.

  (f) If the director determines it to be in the public interest, the director may pursue revocation of a license of a licensee who has relinquished the license under subsection (d) [redesignated subsection (e) by the Publisher].

  (g) A revocation, suspension, or relinquishment of a license does not impair or affect the obligation of any preexisting lawful contract between:

(1) the person whose license has been revoked, suspended, or relinquished; and

(2) any debtor.

  (h) If the director has just cause to believe an emergency exists from which it is necessary to protect the interests of the public the director may proceed under circumstances warranting special proceedings with the revocation of the license under IC 4-21.5-4, which is incorporated by reference. (Department of Financial Institutions; 750 IAC 9-3-11; emergency rule filed Jul 23, 2009, 4:14 p.m.: 20090729-IR-750090577ERA; emergency rule filed Dec 15, 2011, 2:54 p.m.: 20111221-IR-750110778ERA; readopted filed Dec 1, 2015, 9:28 a.m.: 20151230-IR-750150336RFA)