KRS 286.8-048: Emergency orders by commissioner -- Grounds -- Hearing -- Period

order to remain in effect.

(1) The commissioner may enter an emergency order suspending, limiting, or

restricting the license, claim of exemption, or registration of any mortgage loa n

broker, mortgage loan company, or mortgage loan originator without notice or

hearing if it appears upon grounds satisfactory to the commissioner that the

mortgage loan broker, mortgage loan company, or mortgage loan originator has

engaged or is engaging in unsafe, unsound, and illegal practices that pose an

imminent threat to the public interest.

(2) One (1) or more of the following circumstances shall be considered sufficient

grounds for an emergency order under this section if it appears on grounds

satisfactory to the commissioner that:

(a) The mortgage loan broker, mortgage loan company, or mortgage loan

originator does not meet or has failed to comply with more than one (1) of the

requirements of this subtitle and the violations appear to be willful;

(b) The mortgage loan broker or mortgage loan company is in such financial

condition that it cannot continue in business with safety to its customers;

(c) The mortgage loan broker, mortgage loan company, or mortgage loan

originator has been indicted, charge d with, or found guilty of any act

involving fraud, deception, theft, or breach of trust, or is the subject of an

administrative cease -and-desist order or similar order, or of a permanent or

temporary injunction currently in effect entered by any court or agency of

competent jurisdiction;

(d) The mortgage loan broker, mortgage loan company, or mortgage loan

originator has made any misrepresentations or false statements to, or

concealed any essential or material fact from, any person in the course of

doing business in the mortgage lending process, or has engaged in any course

of business that has worked or tended to work a fraud or deceit upon any

person or would so operate;

(e) The mortgage loan broker, mortgage loan company, or mortgage loan

originator has made or caused to be made to the commissioner any false

representation of material fact, has refused to permit an examination, or has

refused or failed, within a reasonable time, to furnish any information or make

any report that may have been requested or required by the commissioner;

(f) The mortgage loan broker, mortgage loan company, or mortgage loan

originator has had any license, registration, or claim of exemption related to

the financial services industry denied, suspended, or revoked under the laws of

this state or any other state of the United States, or has surrendered or

terminated any license, registration, or claim of exemption issued by this state

or any other jurisdiction under threat of administrative action; or

(g) The surety bond required under KRS 286.8-060 has terminated, expired, or no

longer remains in effect.

(3) An emergency order issued under this section becomes effective when signed by the

commissioner. The emergency order shall be delivered by personal delivery or

certified mail t o the last known address of the party or parties. The order shall be

deemed served upon delivery or upon return of the order.

(4) A party aggrieved by an emergency order issued by the commissioner under this

section may request an emergency hearing. The re quest for hearing shall be filed

with the commissioner within twenty (20) days of service of the emergency order.

(5) Upon receipt of a written request for emergency hearing, the commissioner shall

conduct an emergency hearing as required under KRS 13B.125 , within ten (10)

working days from the date of receipt of the request for hearing, unless the parties

agree otherwise.

(6) An emergency order issued under this section shall remain in effect until it is

withdrawn or superseded by an order of the commissio ner or until it is terminated

by a court order.