HARRY HUGHES, Governor

643

(1)   THE MORTGAGE BANKER OR MORTGAGE BROKER
VIOLATES ANY PROVISION OF THE CODE OF CONDUCT ESTABLISHED BY
THE BANK COMMISSIONER UNDER THIS SUBTITLE; AND

(2)   THE BANK COMMISSIONER FINDS THAT
DISCIPLINARY ACTION IS IN THE PUBLIC INTEREST.

REVISOR'S NOTE: This section is new language derived
without substantive change from the third and
fourth sentences of Art. 11, § 61A(b).

The third sentence of present Art. 11, § 61A(b)
states that if the Bank Commissioner "finds that
any mortgage broker or mortgage banker is in
violation ... of the code of conduct ... said
Commissioner shall be empowered to summon such
violator ... to a hearing...". Read literally,
this statement seems to require that the Bank
Commissioner, before summoning a licensee to a
hearing, must make a finding that the licensee
has violated the Code of Conduct. In context,
however, this statement apparently is intended to
refer to a finding that is preliminary in nature

-- i.e., a finding that a hearing is appropriate

-- rather than to a formal finding that a

licensee in fact has committed a violation. That
formal finding, if warranted, would be made after
the hearing. This intention is reflected in this
section and § 12-509 of this subtitle.

Present Art. 11, § 61A(b) also provides that, if
the Bank Commissioner finds that "any person ...
is trading or acting as a mortgage broker or
mortgage banker without a prior registration as
such, said Commissioner shall be empowered to
summon such violator ... to a hearing" and may
"suspend or revoke a registration as a mortgage
broker or mortgage banker following such
hearing...". To the extent that this provision
enables the Bank Commissioner to hold a hearing,
the provision is deleted as nonsequential. This
subtitle does not provide an administrative
sanction against a person who acts as a mortgage
banker or a mortgage broker without obtaining a
license. The Bank Commissioner apparently would
have the power to obtain an injunction to prevent
that person from continuing to do business and §
12-512 of this subtitle provides criminal
penalties for acting as a mortgage broker or
mortgage banker without a license.

The last sentence of present Art. 11, § 61A(b)
states that the Bank Commissioner may "refuse to
grant a reregistration" for certain specified
reasons. This sentence is deleted as unnecessary
in practice and as misleading. Under § 12-509 of
this subtitle, a hearing would be required before