Kentucky Statutes 286.8-048 – Emergency orders by commissioner — Grounds — Hearing — Period order to remain in effect
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(1) The commissioner may enter an emergency order suspending, limiting, or restricting the license, claim of exemption, or registration of any mortgage loan broker, mortgage loan company, or mortgage loan originator without notice or hearing if it appears upon grounds satisfactory to the commissioner that the mortgage loan broker, mortgage loan company, or mortgage loan originator has engaged or is engaging in unsafe, unsound, and illegal practices that pose an imminent threat to the public interest.
(2) One (1) or more of the following circumstances shall be considered sufficient grounds for an emergency order under this section if it appears on grounds satisfactory to the commissioner that:
(a) The mortgage loan broker, mortgage loan company, or mortgage loan originator does not meet or has failed to comply with more than one (1) of the requirements of this subtitle and the violations appear to be willful;
(b) The mortgage loan broker or mortgage loan company is in such financial condition that it cannot continue in business with safety to its customers;
(c) The mortgage loan broker, mortgage loan company, or mortgage loan originator has been indicted, charged with, or found guilty of any act involving fraud, deception, theft, or breach of trust, or is the subject of an administrative cease-and-desist order or similar order, or of a permanent or temporary injunction currently in effect entered by any court or agency of competent jurisdiction;
(d) The mortgage loan broker, mortgage loan company, or mortgage loan originator has made any misrepresentations or false statements to, or concealed any essential or material fact from, any person in the course of doing business in the mortgage lending process, or has engaged in any course of business that has worked or tended to work a fraud or deceit upon any person or would so operate;
(e) The mortgage loan broker, mortgage loan company, or mortgage loan originator has made or caused to be made to the commissioner any false representation of material fact, has refused to permit an examination, or has refused or failed, within a reasonable time, to furnish any information or make any report that may have been requested or required by the commissioner;
(f) The mortgage loan broker, mortgage loan company, or mortgage loan originator has had any license, registration, or claim of exemption related to the financial services industry denied, suspended, or revoked under the laws of this state or any other state of the United States, or has surrendered or terminated any license, registration, or claim of exemption issued by this state or any other jurisdiction under threat of administrative action; or
(g) The surety bond required under KRS § 286.8-060 has terminated, expired, or no longer remains in effect.
(3) An emergency order issued under this section becomes effective when signed by the
commissioner. The emergency order shall be delivered by personal delivery or certified mail to the last known address of the party or parties. The order shall be deemed served upon delivery or upon return of the order.
(4) A party aggrieved by an emergency order issued by the commissioner under this section may request an emergency hearing. The request for hearing shall be filed with the commissioner within twenty (20) days of service of the emergency order.
(5) Upon receipt of a written request for emergency hearing, the commissioner shall conduct an emergency hearing as required under KRS § 13B.125, within ten (10) working days from the date of receipt of the request for hearing, unless the parties agree otherwise.
(6) An emergency order issued under this section shall remain in effect until it is withdrawn or superseded by an order of the commissioner or until it is terminated by a court order.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 129, sec. 4, effective July 15, 2016. — Amended
2010 Ky. Acts ch. 24, sec. 770, effective July 15, 2010. — Created 2008 Ky. Acts ch.
175, sec. 30, effective April 24, 2008.
(2) One (1) or more of the following circumstances shall be considered sufficient grounds for an emergency order under this section if it appears on grounds satisfactory to the commissioner that:
Terms Used In Kentucky Statutes 286.8-048
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- any other state: includes any state, territory, outlying possession, the District of Columbia, and any foreign government or country. See Kentucky Statutes 446.010
- Certified mail: means any method of governmental, commercial, or electronic delivery that allows a document or package to have proof of:
(a) Sending the document or package. See Kentucky Statutes 446.010 - Commissioner: means the commissioner of the Department of Financial
Institutions. See Kentucky Statutes 286.1-010 - Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Fraud: Intentional deception resulting in injury to another.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on residential real property or any loan primarily for personal, family, or household use that is secured by collateral that has a mortgage lien interest in residential real property. See Kentucky Statutes 286.8-010
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan broker: means any person who for compensation or gain, or in the expectation of compensation or other gain, received directly or indirectly, serves as an agent for any borrower in an attempt to obtain a mortgage loan, or holds oneself out as being able to do so. See Kentucky Statutes 286.8-010
- Mortgage loan company: means any person who directly or indirectly:
(a) Makes, purchases, or sells mortgage loans, or holds oneself out as being able to do so. See Kentucky Statutes 286.8-010 - Mortgage loan originator: means a natural person who:
(a) 1. See Kentucky Statutes 286.8-010 - Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(a) The mortgage loan broker, mortgage loan company, or mortgage loan originator does not meet or has failed to comply with more than one (1) of the requirements of this subtitle and the violations appear to be willful;
(b) The mortgage loan broker or mortgage loan company is in such financial condition that it cannot continue in business with safety to its customers;
(c) The mortgage loan broker, mortgage loan company, or mortgage loan originator has been indicted, charged with, or found guilty of any act involving fraud, deception, theft, or breach of trust, or is the subject of an administrative cease-and-desist order or similar order, or of a permanent or temporary injunction currently in effect entered by any court or agency of competent jurisdiction;
(d) The mortgage loan broker, mortgage loan company, or mortgage loan originator has made any misrepresentations or false statements to, or concealed any essential or material fact from, any person in the course of doing business in the mortgage lending process, or has engaged in any course of business that has worked or tended to work a fraud or deceit upon any person or would so operate;
(e) The mortgage loan broker, mortgage loan company, or mortgage loan originator has made or caused to be made to the commissioner any false representation of material fact, has refused to permit an examination, or has refused or failed, within a reasonable time, to furnish any information or make any report that may have been requested or required by the commissioner;
(f) The mortgage loan broker, mortgage loan company, or mortgage loan originator has had any license, registration, or claim of exemption related to the financial services industry denied, suspended, or revoked under the laws of this state or any other state of the United States, or has surrendered or terminated any license, registration, or claim of exemption issued by this state or any other jurisdiction under threat of administrative action; or
(g) The surety bond required under KRS § 286.8-060 has terminated, expired, or no longer remains in effect.
(3) An emergency order issued under this section becomes effective when signed by the
commissioner. The emergency order shall be delivered by personal delivery or certified mail to the last known address of the party or parties. The order shall be deemed served upon delivery or upon return of the order.
(4) A party aggrieved by an emergency order issued by the commissioner under this section may request an emergency hearing. The request for hearing shall be filed with the commissioner within twenty (20) days of service of the emergency order.
(5) Upon receipt of a written request for emergency hearing, the commissioner shall conduct an emergency hearing as required under KRS § 13B.125, within ten (10) working days from the date of receipt of the request for hearing, unless the parties agree otherwise.
(6) An emergency order issued under this section shall remain in effect until it is withdrawn or superseded by an order of the commissioner or until it is terminated by a court order.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 129, sec. 4, effective July 15, 2016. — Amended
2010 Ky. Acts ch. 24, sec. 770, effective July 15, 2010. — Created 2008 Ky. Acts ch.
175, sec. 30, effective April 24, 2008.