Section 230-RICR-40-10-2.6 - Mortgage Loan OriginatorsA. Application. All Rhode Island licensed Mortgage Loan Originators ("MLO") shall make application for a license and all changes in Nationwide Multistate Licensing System (NMLS). Any changes to the information provided must be reported to the Department, within thirty (30) days through an NMLS filing.B. Sponsorship. A MLO may not originate any loan in Rhode Island unless that MLO has an active sponsorship with a properly licensed lender or loan broker or an entity explicitly exempt from licensure under R.I. Gen. Laws Chapter 19-14.C. Net Branching. A MLO may not participate in a net branching arrangement as described in § 2.5 of this Part. Participation in such an arrangement may result in administrative action against the MLO including suspension or revocation and/or forfeiture of interest, fees and charges.D. Criminal Backgrounds. All applicants for an MLO must provide a criminal background check authorization as provided for in NMLS. The background will be evaluated as indicated in § 2.8 of this Part. 1. Registered Mortgage Loan Originators, as defined by R.I. Gen. Laws §1914.10-3, are subject to that statute and not this Part.E. Financial Responsibility. An applicant for a MLO License must demonstrate financial responsibility pursuant to R.I. Gen. Laws § 19-14.10-6(3) and as provided in § 2.7 of this Part.F. Bonds. The responsibility of a MLO to be covered by a surety bond in accordance with R.I. Gen. Laws § 19-14.10-14 is satisfied if the MLO is an employee of a licensee that posts and maintains a bond in accordance with § 2.5(C) of this Part and R.I. Gen. Laws § 19-14-6.230 R.I. Code R. 230-RICR-40-10-2.6
Adopted effective 1/1/2019
Amended effective 6/27/2022