Supervision by mortgage broker; requirements; regulations.
1. A mortgage broker shall exercise reasonable supervision over the activities of his mortgage agents. Such reasonable supervision must include, as appropriate:
(a) The establishment of written or oral policies and procedures for his mortgage agents; and
(b) The establishment of a system to review, oversee and inspect the activities of his mortgage agents, including, without limitation:
(1) Transactions handled by his mortgage agents pursuant to this chapter;
(2) Communications between his mortgage agents and a party to such a transaction;
(3) Documents prepared by his mortgage agents that may have a material effect upon the rights or obligations of a party to such a transaction; and
(4) The handling by his mortgage agents of any fee, deposit or money paid to the mortgage broker or his mortgage agents or held in trust by the mortgage broker or his mortgage agents pursuant to this chapter.
2. The Commissioner shall allow a mortgage broker to take into consideration the total number of mortgage agents associated with or employed by the mortgage broker when the mortgage broker determines the form and extent of the policies and procedures for those mortgage agents and the system to review, oversee and inspect the activities of those mortgage agents.
3. The Commissioner may adopt regulations prescribing standards for determining whether a mortgage broker has exercised reasonable supervision over the activities of a mortgage agent pursuant to this section.
Last modified: February 27, 2006