§454F-1.7 Duties of a qualified individual and branch manager. (a) Every mortgage loan originator company licensed under this chapter and every exempt sponsoring mortgage loan originator company registered with NMLS under this chapter shall designate a qualified individual to fulfill the duties and responsibilities set forth in this chapter. A qualified individual shall have the duty to manage and supervise the mortgage loan origination activities of the principal office of the licensed mortgage loan originator company or exempt sponsoring mortgage loan originator company, and the licensed mortgage loan originators located at or working out of the principal office and all company branch offices. A qualified individual for a mortgage loan originator company shall hold a license as a mortgage loan originator issued pursuant to this chapter.

(b) A branch manager shall have the duty to directly manage and supervise a licensed mortgage loan originator company's branch office and the licensed mortgage loan originators located at or working out of that location. A branch manager shall be physically present in the branch office and shall hold a license as a mortgage loan originator issued pursuant to this chapter.

(c) A qualified individual for a mortgage loan originator company or exempt sponsoring mortgage loan originator company shall be responsible for:

(1) Supervising the maintenance and accounting of client trust accounts and disbursements from those accounts;

(2) Supervising the maintenance of all records, contracts, and documents of the mortgage loan originator company or exempt sponsoring mortgage loan originator company;

(3) Supervising all mortgage loan originator agreements and mortgage loan documents and the handling of these documents by the licensed mortgage loan originators who are employed by or are independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company;

(4) Supervising all licensed mortgage loan originators who are employed by or are independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company;

(5) Developing and enforcing policies and procedures relating to the handling of residential mortgage loan transactions and the professional conduct of the licensed mortgage loan originators and other staff;

(6) Developing and monitoring compliance with a policy on continuing education requirements for all licensed mortgage loan originators who are employed by or are independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company pursuant to the requirements of this chapter and the rules of the commissioner;

(7) Ensuring that the licenses of all mortgage loan originators who are employed by or are independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company, and the license of the mortgage loan originator company are current and active, that the exempt sponsoring mortgage loan originator company is registered with NMLS, and that all required fees are timely paid to the mortgage loan recovery fund;

(8) Establishing and conducting a training program for all licensed mortgage loan originators who are employed by or are independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company;

(9) Ensuring that all licensed mortgage loan originators who are employed by or are independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company are provided adequate information and training on the latest amendments to licensing laws and rules and any other applicable laws and rules;

(10) Notifying the commissioner of the termination of the employment or independent contractor relationship of licensed mortgage loan originators who were employed by or were independent contractors of the mortgage loan originator company or exempt sponsoring mortgage loan originator company upon the termination of employment or the independent contractor relationship; and

(11) Ensuring that the records, loan documents, and agreements including mortgage loan originator agreements are retained for seven years on paper or in electronic format by the mortgage loan originator company or exempt sponsoring mortgage loan originator company.

(d) A branch manager for a branch office shall be responsible for supervising:

(1) The maintenance of all records, contracts, and documents of the mortgage loan originator company branch office;

(2) All mortgage loan originator agreements and mortgage loan documents and the handling of these documents by the licensed mortgage loan originators or independent contractors located at or working out of the mortgage loan originator company branch office; and

(3) All licensed mortgage loan originators who are employed by, or are independent contractors of, the mortgage loan originator company and who are located at or working out of the mortgage loan originator company branch office. [L 2011, c 194, pt of §1; am L 2012, c 252, §5; am L 2013, c 168, §5; am L 2017, c 150, §3]