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Home » US Law » 2022 Code of Alabama » Title 5 - Banks and Financial Institutions. » Chapter 25 - Mortgage Brokers Licensing Act.

Section 5-25-1 – Short Title.

Section 5-25-1 Short title. This chapter shall be known and cited as the Mortgage Brokers Licensing Act. (Act 2001-692, p. 1439, §1.)

Section 5-25-10 – Annual Report.

Section 5-25-10 Annual report. (a) Each licensee shall annually, on or before May 1, file a written report with the department containing that information the department may require concerning the licensee’s business and operations during the preceding calendar year, including financial statements. (b) Reports shall be made under oath and shall be in the form […]

Section 5-25-11 – Principal Place of Business; Branch Office.

Section 5-25-11 Principal place of business; branch office. A licensee may transact business from both a principal place of business and one or more branch offices provided each is licensed under this chapter. A principal place of business or branch office shall consist of at least one enclosed room or building of stationary construction in […]

Section 5-25-12 – Disclosure by Licensee; Prohibited Activities.

Section 5-25-12 Disclosure by licensee; prohibited activities. (a) Licensees shall: (1) Prior to the collection of a mortgage broker fee from a borrower, disclose to the borrower in writing the nature of the mortgage broker’s relationship to the borrower and the method by which the mortgage broker will be compensated for services. (2) Comply with […]

Section 5-25-13 – Rules and Regulations.

Section 5-25-13 Rules and regulations. (a) The department may promulgate those rules and regulations, not inconsistent with law, necessary for the enforcement of this chapter. (b) (1) Prior to the adoption, amendment, or repeal of any regulation, the supervisor shall give at least 35 days’ notice of its intended action by filing notice of intended […]

Section 5-25-14 – Denial, Suspension, or Revocation of License.

Section 5-25-14 Denial, suspension, or revocation of license. (a) The department may suspend or revoke a license on any ground on which it might refuse to issue an original license, or for a violation of any provision of this chapter or any rule or regulation issued under this chapter or for failure of the licensee […]

Section 5-25-15 – Appeal.

Section 5-25-15 Appeal. (a) Any interested party or intervener may appeal an order of the department to the Circuit Court of Montgomery County or to the circuit court of the county in which such party has its principal place of business in Alabama by filing notice of appeal with the department and with the register […]

Section 5-25-16 – Enforcement and Penalties.

Section 5-25-16 Enforcement and penalties. (a) Whenever it appears to the supervisor that any person required to be licensed or registered under this chapter has violated any law of this state or any order or regulation of the department, the supervisor after notice and hearing may order such person or an affiliate acting on behalf […]

Section 5-25-17 – Violations of Chapter.

Section 5-25-17 Violations of chapter. Any person who willfully violates any of the provisions of this chapter shall be guilty of a misdemeanor and shall be punished by imprisonment for not more than one year or by a fine of not more than one thousand dollars ($1,000), or by both fine and imprisonment. (Act 2001-692, […]

Section 5-25-18 – Disposition of Funds.

Section 5-25-18 Disposition of funds. All fees and administrative penalties collected shall be paid into the special fund provided by Section 5-2A-20 and used in the supervision and examination of licensees. (Act 2001-692, p. 1439, §18.)

Section 5-25-2 – Definitions.

Section 5-25-2 Definitions. For purposes of this chapter, the following terms shall have the following meanings: (1) BORROWER. A natural person who submits an application for a loan secured by a first or subordinate mortgage or deed of trust on a single-family to four-family home to be occupied by the borrower as the borrower’s primary […]

Section 5-25-3 – Persons Excluded.

Section 5-25-3 Persons excluded. The following persons are not subject to the provisions of this chapter: (1) Any depository institution as defined in Section 3 of the Federal Deposit Insurance Act, any subsidiary institution that is owned and controlled by a depository institution, and employees of any of the foregoing. Bank holding companies and subsidiaries […]

Section 5-25-4 – License to Transact Business as a Mortgage Broker.

Section 5-25-4 License to transact business as a mortgage broker. (a) On and after January 1, 2002, no person shall transact business in this state directly or indirectly as a mortgage broker unless he or she is licensed as a mortgage broker by the department, or is a person exempted from the licensing requirements pursuant […]

Section 5-25-5 – Application for License.

Section 5-25-5 Application for license. (a) An application for a license under this chapter shall be made in writing, under oath, and in the form as the department may prescribe. (b) The application shall include all of the following: (1) The legal name, business address, and telephone number of the applicant and, if the applicant […]

Section 5-25-6 – Issuance of License.

Section 5-25-6 Issuance of license. (a) Upon receipt of a completed application for a license together with all items set forth in subsection (c) of Section 5-25-5, the department shall conduct such an investigation as it deems necessary to determine that the applicant and its officers, directors, and principals are of good character and ethical […]

Section 5-25-7 – Expiration and Renewal.

Section 5-25-7 Expiration and renewal. (a) All licenses issued pursuant to this chapter shall expire on December 31 of each year. Application for renewal shall be made annually on or before December 1 of each year to be effective for the following year. (b) Any licensee making proper application, including all supporting documents and all […]

Section 5-25-8 – License Requirements.

Section 5-25-8 License requirements. (a) Each license issued under this chapter shall state the address of the licensee’s principal place of business and the name of the licensee. (b) A licensee shall post the license in a conspicuous place in each place of business of the licensee. (c) A license may not be transferred or […]

Section 5-25-9 – Maintenance and Examination of Records, Etc.

Section 5-25-9 Maintenance and examination of records, etc. (a) Any person required to be licensed under this chapter shall maintain in its offices or such other location as the department shall permit the books, accounts, and records as the department may reasonably require in order to determine whether the person is complying with this chapter […]