(a) The commissioner may suspend, revoke or refuse to renew any mortgage servicer license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under section 36a-719, or if the commissioner finds that the licensee, any control person of the licensee, the qualified individual or any branch manager with supervisory authority, trustee, employee or agent of such licensee has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud or misrepresentation or misappropriated funds; (3) violated any of the provisions of this title or of any regulation or order adopted or issued pursuant thereto pertaining to any such person, or any other law or regulation applicable to the conduct of such licensee's mortgage servicer business; or (4) failed to perform any agreement with a mortgagee or a mortgagor.

(b) Whenever it appears to the commissioner that (1) any person has violated, is violating or is about to violate section 49-8 or 49-10a, any of the provisions of this title or of any regulations adopted pursuant thereto, (2) any person is, was or would be a cause of the violation of any such provision or regulation due to an act or omission such person knew or should have known would contribute to such violation, or (3) any licensee has failed to perform any agreement with a mortgagee or mortgagor, committed any fraud, made any misrepresentation or misappropriated funds, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.

(c) The commissioner may order a licensee to remove any individual conducting business under sections 36a-715 to 36a-719l, inclusive, from office and from employment or retention as an independent contractor in the mortgage loan servicer business in this state in accordance with section 36a-51a.

(d) The commissioner may issue a temporary order to cease business under a license if the commissioner determines that such license was issued erroneously. Such temporary order shall be issued in accordance with subsection (j) of section 36a-24b.

(P.A. 14-89, S. 15; P.A. 18-173, S. 77.)

History: P.A. 18-173 amended Subsec. (a)(3) by replacing “regulations adopted pursuant thereto, or any other law or regulation applicable to the conduct of its business” with “regulation or order adopted or issued pursuant thereto pertaining to any such person, or any other law or regulation applicable to the conduct of such licensee's mortgage servicer business”, amended Subsec. (b) by designating existing provision re person violation provisions of title or regulations as Subdiv. (1), adding Subdiv. (2) re person is, was or would be cause of violation of provision of sections or regulation, and designating existing provision re licensee's failure to perform agreement, committed fraud, made misrepresentation or misappropriated funds as Subdiv. (3), added Subsec. (c) re commissioner's authority to order licensee to remove individual conducting business from office, employment or retention as independent contractor, added Subsec. (d) re commissioner's authority to issue temporary order, and made technical and conforming changes.