{"data":{"id":"us-dc/d.c.-code-26-1118","jurisdiction":"us-dc","citation":"D.C. Code § 26-1118","heading":"Suspension, revocation, and enforcement.","body":"(a)\nThe Superintendent [Commissioner] may suspend or revoke the license of any licensee if the licensee or any owner, director, officer, member, partner, stockholder, employee, or agent of the licensee, while acting on behalf of the licensee:\n(1)\nMakes any material misstatement in an application for a license;\n(2)\nHas been convicted of any crime of moral turpitude;\n(3)\nIn connection with any mortgage loan or loan application transaction:\n(A)\nCommits any fraud;\n(B)\nEngages in any illegal or dishonest activities; or\n(C)\nMisrepresents or fails to disclose any material facts to anyone entitled to that information;\n(4)\nViolates any provision of this chapter, any rule or regulation adopted under it, or any other law regulating mortgage loan lending in the District;\n(5)\nEngages in a course of conduct consisting of the failure to perform written agreements with borrowers;\n(6)\nFails to account for funds received or disbursed to the satisfaction of the person supplying or receiving such funds;\n(7)\nFails to disburse funds in accordance with any agreement connected with, and promptly upon closing of, a mortgage loan, taking into account any applicable right of rescission;\n(8)\nIs convicted of a felony or misdemeanor involving fraud, misrepresentation, or deceit;\n(9)\nHas a judgment entered against such licensee involving fraud, misrepresentation, or deceit;\n(10)\nHas been found by a federal, state, or District agency to be in violation of any law or any regulation applicable to the conduct of the licensee’s business;\n(11)\nRefuses to permit an investigation or examination by the Superintendent [Commissioner];\n(12)\nFails to pay any fee or assessment imposed by this chapter;\n(12A)\nHas been found in violation of Chapter 11A of this title or determined by the Commissioner to have made a loan in violation of Chapter 11A of this title;\n(13)\nFails to comply with any order of the Superintendent [Commissioner]; or\n(14)\nOtherwise demonstrates unworthiness, bad faith, dishonesty, or any other quality that indicates that the business of the licensee has not been, or will not be, conducted honestly, fairly, equitably, and efficiently.\n\n(b)\n(1)\nThe Commissioner may enforce the provisions of this section or any rules and regulations adopted hereunder, by issuing an order against any licensee or person required to be licensed. The Commissioner may issue an order requiring a licensee or any person engaging in any activity or business within the scope of this chapter to show cause as to the reasons enforcement action should not be taken against such licensee or person.\n(2)\nIf a violator fails to comply with an order issued under paragraph (1) of this subsection, the Superintendent [Commissioner] may impose a civil penalty of up to $25,000 for each violation from which the violator failed to cease and desist or for which the violator failed to take affirmative action to correct.\n\n(c)\nThe Superintendent [Commissioner] may request the Corporation Counsel of the District of Columbia to take appropriate action in the Superior Court of the District of Columbia for the enforcement of an order issued under this section. The Corporation Counsel may also seek, and the Superior Court of the District of Columbia may order or decree, damages and such other relief allowed by law, including restitution. Persons entitled to any relief as authorized by this section shall be identified by order of the court within 180 days after the date of the order permanently enjoining the unlawful act or practice. In any action brought by the Corporation Counsel by virtue of this provision, the Corporation Counsel shall be entitled to seek attorney’s fees and costs.\n\n(d)\nIn determining the amount of financial penalty to be imposed under subsection (b) of this section, the Superintendent [Commissioner] shall consider the following:\n(1)\nThe seriousness of the violation;\n(2)\nThe good faith of the violator;\n(3)\nThe violator’s history of previous violations;\n(4)\nThe deleterious effect of the violation on the public and mortgage industry;\n(5)\nThe assets of the violator; and\n(6)\nAny other factors relevant to the determination of the financial penalty.\n\n(e)\nNothing in this chapter shall be construed to preclude any individual or entity who suffers loss as a result of any violation of this chapter from maintaining an action to recover damages or restitution and, as provided by statute, attorney’s fees.","path":["Title 26. Banks and Other Financial Institutions.","Chapter 11. Mortgage Lenders and Brokers."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/26-1118","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"279fb09b13cd4d708b577480356b8cb3ff55116f78367cfe89ad0fe58af319c4","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-26-1117","next":"us-dc/d.c.-code-26-1119"},"notice":"GroundRules: Original legal text. Not legal advice."}