United States
Hong KongState regulatory authority and discipline
State regulators may examine licensees, investigate complaints, issue cease and desist orders, impose fines, and suspend or revoke a license. Records must be kept and produced on request.
The last of the four state content subtopics, and the one that explains why the rest matters.
What a regulator may do
- Examine a licensee's books, records and operations
- Investigate consumer complaints
- Issue cease and desist orders
- Impose civil money penalties
- Suspend, revoke or refuse to renew a license
- Require restitution to consumers
Note that examination does not require suspicion. A routine examination is a normal part of holding a license.
Recordkeeping
Licensees must maintain records and produce them on request. Failing to keep them is itself a violation, separate from whatever the records would have shown. It is routine. Keep the records.
An originator who cannot evidence what was disclosed and when is in a weak position in an examination, even where the underlying conduct was correct. The record is the defense.
The federal layer
The Consumer Financial Protection Bureau supervises and enforces the federal consumer financial laws alongside state regulators.
So a licensee can face state action, federal action, or both, arising from the same conduct.
What ends a license
Fraud, misrepresentation, unlicensed activity, failure to account for funds, and conviction of a disqualifying offense.
A revocation is recorded against your unique identifier permanently and is visible to every future employer and regulator.
Common questions
What powers does a state mortgage regulator have?
Examination, investigation, cease and desist orders, fines, restitution, and suspension or revocation of a license.
Does an examination mean I am suspected of something?
No. Routine examination is a normal part of holding a license.
What records must a licensee keep?
Those required by state rule and federal regulation, produced on request. Failing to keep them is a violation in itself.
Can I face both state and federal action?
Yes. The Consumer Financial Protection Bureau enforces federal consumer financial law alongside state regulators.
Does a revocation follow me?
Yes. It attaches to your unique identifier permanently and is visible to future employers and regulators.