Sec. 09.03.06.18. Continuing Education

A. Purpose and Applicability.

(1) The State legislature has determined that it is in the public interest to require licensees to comply with a continuing education requirement as a prerequisite to the renewal of a mortgage lender license.

(2) The continuing education requirement does not apply to the original application for a license.

B. Definitions. In this regulation, the following terms have the meanings indicated:

(1) "Continuing education course" or "course" means an educational program related to mortgage lending or brokering which contributes directly to the enhancement of professional competence of a covered employee to engage in the mortgage lending business, as defined in Financial Institutions Article, §11-501, Annotated Code of Maryland.

(2) Covered Employees.

(a) "Covered employees" means the person with the required experience under Financial Institutions Article, §11-506(b)(2), (3), and (4), Annotated Code of Maryland, and the manager of each branch office licensed, or required to be licensed, by the Commissioner.

(b) "Covered employees" does not include an employee who:

(i) Has been employed by the licensee for less than 6 months before the expiration date of the licensee's current license; and

(ii) Had no prior experience as a covered employee with any other licensee.

C. Requirements.

(1) Except as provided in §A(2) of this regulation, in order to renew a license, each covered employee of a licensee shall successfully complete in the licensing period immediately preceding the current renewal period at least 8 hours of continuing education in approved courses.

(2) The required 8 hours of continuing education shall be the same as the continuing education requirements for mortgage loan originators set forth in Financial Institutions Article, §11-612, Annotated Code of Maryland, and COMAR 09.03.09.03, and include at least the following subjects in the number of hours indicated:

(a) Federal law and regulations relating to mortgage origination - 3 hours;

(b) Ethics, including instruction on fraud, consumer protection, and fair lending issues - 2 hours;

(c) Lending standards and loan terms for the nontraditional mortgage product market - 2 hours; and

(d) Maryland law and regulations relating to mortgage lending and origination - 1 hour.

(3) Hours in excess of the minimum requirement during any licensing period may not be carried over to a successive period.

D. Reporting, Verification, and Record Keeping.

(1) A licensee, when applying for a license renewal, shall:

(a) Provide to the Commissioner any information or certification as the Commissioner may require as proof of satisfactory completion of each covered employee's education requirements; and

(b) Submit to the Commissioner, in the manner the Commissioner requires, a list of all covered employees.

(2) The Commissioner may require verification, on a random or other basis, of satisfactory completion of the requirements of this regulation.

(3) A licensee shall retain the evidence reasonably acceptable to the Commissioner to verify satisfactory completion of the requirements of this regulation for a period of at least 3 years after issuance of the renewal license to which it applies.

E. Nonrenewal, Suspension, or Revocation of License.

(1) Subject to the notice and hearing requirements of Financial Institutions Article, §11-518, Annotated Code of Maryland, failure to comply with the requirements of this regulation is grounds for:

(a) Denial of a license renewal under Financial Institutions Article, §11-511(b), Annotated Code of Maryland; or

(b) Suspension or revocation of a license or other sanctions pursuant to Financial Institutions Article, §11-517, Annotated Code of Maryland.

(2) The Commissioner may issue to a licensee a cease and desist order under Financial Institutions Article, §11-517, Annotated Code of Maryland, which:

(a) Prohibits a covered employee who has failed to comply with this regulation from qualifying as the person with the required experience under Financial Institutions Article, §11-506(b)(2), (3), and (4), Annotated Code of Maryland, or acting as a manager of a branch office; and

(b) Continues in effect until the licensee demonstrates to the Commissioner completion by the covered employee of all educational requirements of this regulation.