SECTION 160:55-3-12. Standards for determining financial responsibility

(a)   Purpose. Mortgage loan originator applicants and the owners, officers, directors and partners of mortgage broker and mortgage lender applicants must demonstrate financial responsibility pursuant to the SAFE Act and this rule. The SAFE Act authorizes the Administrator to deny license applications if an applicant for a mortgage loan originator license or if any owner, officer, director or partner of a mortgage broker or mortgage lender applicant has not demonstrated financial responsibility. The SAFE Act provides general guidelines for determining a failure to demonstrate financial responsibility, such as outstanding judgments, foreclosures, tax liens and a pattern of seriously delinquent accounts. The purpose of this rule is to establish specific criteria for determining when an applicant for a mortgage loan originator license or when any owners, officers, directors or partners of a mortgage broker or mortgage lender applicant have failed to demonstrate financial responsibility pursuant to the SAFE Act and this rule.

(b)   Standards demonstrating financial responsibility pursuant to the SAFE Act and this rule.

(1)   Threshold credit score. A credit score for a mortgage loan originator applicant or an owner, officer, director and partner of an applicable mortgage broker or mortgage lender applicant is provided by the credit reporting bureau utilized by the NMLS&R. The Administrator shall set a threshold credit score to assist in the determination of financial responsibility. The Administrator shall publish the threshold credit score on the Department website. The Administrator may adjust the threshold credit score as necessary. Any adjustments to the threshold credit score shall be published on the Department website.

(2)   Mortgage loan originators. If an applicant's credit score equals or exceeds the threshold credit score, the applicant shall be deemed to have demonstrated financial responsibility pursuant to the SAFE Act and this rule. If the credit score of an applicant is less than the threshold credit score, the Administrator shall review the credit report of the applicant provided by NMLS&R for any current outstanding judgments (excluding judgments solely as a result of medical expenses) current outstanding tax liens or other government liens and filings, foreclosures within the past three (3) years and seriously delinquent accounts within the past three (3) years to determine if the applicant demonstrates financial responsibility pursuant to the SAFE Act and this rule.

(3)   Mortgage brokers and mortgage lenders. If the credit score of all of the owners, officers, directors or partners of the mortgage broker or mortgage lender applicant equals or exceeds the threshold credit score, the mortgage broker or mortgage lender applicant shall be deemed to have demonstrated financial responsibility pursuant to the SAFE Act and this rule. If the credit score of any of the owners, officers, directors or partners of the mortgage broker or mortgage lender applicant is less than the threshold credit score, the Administrator shall review the credit reports of the owners, officers, directors or partners of the mortgage broker or mortgage lender applicant with a credit score that is less than the threshold credit score for any current outstanding judgments, excluding judgments solely as a result of medical expenses, current outstanding tax liens or other government liens and filings, foreclosures within the past three (3) years and seriously delinquent accounts within the past three (3) years of such owner, officer, director or partner to determine if the mortgage broker or mortgage lender applicant demonstrates financial responsibility pursuant to the SAFE Act and this rule.

[Source: Added at 26 Ok Reg 2947, eff 6-22-09 (emergency); Added at 27 Ok Reg 1763, eff 7-1-10; Amended at 31 Ok Reg 949, eff 9-12-14]