ND MLO cheat sheet

The North Dakota Money Brokers Act (N.D.C.C. ch. 13-04.1) governs mortgage brokers and is administered by the North Dakota Department of Financial Institutions (DFI); money brokers must be licensed before conducting business.

A mortgage broker license applicant must demonstrate financial responsibility, including a minimum net worth requirement and a surety bond; the bond amount is set by statute/rule and runs to the state for the benefit of injured parties.

North Dakota requires mortgage loan originators to be licensed through NMLS and to hold a valid unique identifier; state licensees must complete the state-specific prelicensure and continuing education components.

DFI examines licensees and may deny, suspend, revoke, or refuse to renew a license, impose civil money penalties, and order restitution for violations such as unlicensed activity, fraud, or failure to maintain records.

Licensees must keep records of mortgage loan transactions for the period prescribed by DFI rule and make them available for examination; required disclosures and fee agreements must be documented in writing.

North Dakota prohibits unlicensed persons from engaging in mortgage brokering and from using titles implying licensure; advertising must not be false or misleading.

The Money Brokers Act defines a money broker broadly to include persons who, for compensation, negotiate or place mortgage loans for others, with exemptions for certain regulated entities such as banks and credit unions.

License renewal is annual and tied to NMLS; late renewal or operating with an expired license subjects the licensee to enforcement action and possible civil penalties.

State-specific content tests knowledge of North Dakota statutes and rules that differ from federal law, including licensing, supervision, and prohibited practices under the Money Brokers Act.

Candidates must know the role and authority of the North Dakota Department of Financial Institutions, including investigation, examination, and disciplinary procedures.

North Dakota law addresses mortgage loan originator conduct, including prohibitions on fraud, misrepresentation, and concealment in mortgage transactions.

The state-specific section covers required disclosures and consumer protections unique to North Dakota, including provisions on escrow, fees, and loan servicing practices.

North Dakota has a residential mortgage lending statute (N.D.C.C. ch. 35-03) addressing foreclosure and related consumer protections; exam content may test awareness of these state-law overlays.

Enforcement topics include grounds for license denial or revocation, administrative hearings, appeal rights, and penalties for unlicensed mortgage activity.

The exam expects familiarity with North Dakota's treatment of high-cost or predatory lending practices and with the state's coordination with federal disclosure requirements.

Candidates should understand recordkeeping, advertising, and reporting obligations imposed by North Dakota law on licensed mortgage entities.

North Dakota prohibits fraudulent, deceptive, or dishonest dealings by licensees, including making false statements about loan terms, rates, or fees.

Licensees may not charge or collect undisclosed fees; all compensation and third-party charges must be disclosed to the borrower in writing.

North Dakota law restricts certain practices in mortgage transactions, such as improper influence over appraisals and steering borrowers into unsuitable products.

State law authorizes DFI to investigate consumer complaints and to take action against licensees for violations, including ordering refunds or restitution.

North Dakota's foreclosure statutes impose notice and process requirements; violations can affect the enforceability of the foreclosure and expose servicers to liability.

Licensees must safeguard nonpublic personal information consistent with state and federal privacy requirements and must not misuse borrower data.

Advertising by licensees must identify the licensed entity accurately and may not imply an affiliation with a government agency.

Violations of North Dakota consumer protection provisions may result in civil penalties, license suspension, and referral for criminal prosecution where fraud is involved.

Applicants submit license requests through NMLS, including fingerprints for FBI criminal background checks, credit reports, and disclosures of administrative or legal actions.

Prelicensure education for state-licensed MLOs includes a federal component plus North Dakota-specific education; continuing education must include state-specific hours annually.

The SAFE Act testing requirement applies: MLOs must pass the national test with the Uniform State Content and may be required to pass a state-specific test component for North Dakota.

Licensees must update NMLS records within the required timeframe after changes to name, address, employment, or material events such as criminal charges or regulatory actions.

Sponsorship or employment with a licensed mortgage entity is required for MLO licensure in North Dakota; the employing entity must also hold the appropriate license.

DFI reviews applications for completeness and may request additional information; incomplete applications are not approved and may be closed.

Renewal deadlines and CE completion dates are enforced through NMLS; failure to complete CE or renew timely results in license expiration and loss of authority to originate.

Surety bond and net worth requirements must be maintained continuously; a lapse can trigger suspension of the license.

Licensees must maintain a compliance management system that includes policies, training, monitoring, and complaint handling appropriate to the size and complexity of the business.

DFI examinations may review loan files, advertisements, fee agreements, and records of MLO activity; licensees must cooperate and produce records on request.

Mortgage call reports and other required filings must be submitted accurately and on time through NMLS.

Supervisors must ensure MLOs complete required education, maintain licensure, and adhere to North Dakota-specific disclosure and conduct rules.

Complaint records should be retained and made available to DFI; unresolved patterns of complaints can prompt examination or enforcement.

Advertising review should confirm accuracy of rate, APR, and fee claims and compliance with North Dakota and federal disclosure rules.

Third-party service providers and brokers must be monitored for compliance; the licensee remains responsible for activities conducted on its behalf.

Change-of-control and material business changes may require notice to DFI; operating without required approval can be a violation.

DFI may issue cease-and-desist orders, suspend or revoke licenses, impose civil penalties, and order restitution for violations of the Money Brokers Act and related rules.

Unlicensed mortgage brokering is a violation subject to enforcement action and potential criminal penalties under North Dakota law.

Licensees are entitled to notice and an opportunity for a hearing before DFI imposes disciplinary sanctions; final orders may be appealed under the state's administrative procedure act.

Grounds for discipline include fraud, material misrepresentation in an application, failure to maintain records, and failure to comply with examination requests.

DFI may accept settlements or consent orders that include monetary penalties, compliance commitments, and reporting obligations.

Repeat violations or patterns of consumer harm can result in enhanced penalties and permanent bars from licensure.

Licensees must report certain enforcement actions, criminal charges, and civil judgments to NMLS and DFI within required timeframes.

Failure to pay penalties or comply with orders can lead to further sanctions, including license revocation and referral for collection or prosecution.