Chapter 36

18 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 1 CHAPTER 36 MORTGAGES Article 1. Mortgages in General. Article 2. Mortgages of Real Property. Article 3. Guam Secure and Fair Enforcement for Mor tgage Licensing Act of 2010. ARTICLE 1 MORTGAGES IN GENERAL § 36101. What is a Mortgage. § 36102. Property Adversely Held. § 36103. Mortgage to be in Writing. § 36104. Lien of Mortgage - when Special. § 36105. Transfer Generally: Mortgage or Pledge. § 36106. Transfer Defeasance may be Proved. § 36107. Mortgage, on what a Lien. § 36108. Mortgagee not Entitled to Possession. § 36109. Mortgage not a Personal Obligation. § 36110. Waste. § 36111. Subsequently Acquired Title. § 36112. Foreclosure. § 36113. Power of Sale. § 36114. Power of Attorney to Execute. § 36115. Recording Assignment. § 36116. Not Notice to Mortgagor. § 36117. Passes by Assignment of Debt. § 36118. Discharge of Mortgage. § 36119. Satisfying by Foreign Executors. § 36120. Duty of Mortgagee on Satisfaction. § 36121. Bottomry or Respondentia not Affected. § 36122. Description of Mortgaged Property. § 36101. What is a Mortgage.

. Satisfying by Foreign Executors. § 36120. Duty of Mortgagee on Satisfaction. § 36121. Bottomry or Respondentia not Affected. § 36122. Description of Mortgaged Property. § 36101. What is a Mortgage. Mortgage is a contract by which specific property is hypoth ecated for the performance of an act, without the necessity of a change of possession. SOURCE: CC § 2920. § 36102. Property Adversely Held. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 2 A mortgage may be created upon property held advers ely to the mortgagor. SOURCE: CC § 2921. § 36103. Mortgage to be in Writing. A mortgage can be created, renewed or extended, onl y by writing, executed with the formalities required in the case of a grant of real property. SOURCE: CC § 2922. § 36104. Lien of Mortgage - When Special. The lien of a mortgage is special, unless otherwise expressly agreed, and is independent of possession. SOURCE: CC § 2923. § 36105. Transfer Generally: Mortgage or Pledge. (a) Every transfer of an interest in property, made only as a security for the performance of another act, is to be deemed a m ortgage, [except when in the case of personal property it is accompanied by actual change of

f an interest in property, made only as a security for the performance of another act, is to be deemed a m ortgage, [except when in the case of personal property it is accompanied by actual change of possession, in which case it is deemed a pledge.] (b) Every transfer of conveyance of any interest in real property by deed of trust or otherwise, with right reserved to repur chase, executed and delivered to secure the performance of another act, is to be deemed a mortgage. SOURCE: CC § 2924. NOTE: The concept of a mortgage on personal property has been abolished. The same purpose is found in the Uniform Commercial Code as a security interest, and the applicable law governing both security interests an d pledges is found in the UCC (13 GCA). § 36106. Transfer Defeasance may be Proved. The fact that a transfer was made subject to defeas ance on a condition, may, for the purpose of showing such transfer to be a mortgage, be proven (except as against a subsequent purchaser or encumb rancer for value and without notice) though the fact does not appear by the terms of the instrument. SOURCE: CC § 2925. § 36107. Mortgage, on what a Lien. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH.

for value and without notice) though the fact does not appear by the terms of the instrument. SOURCE: CC § 2925. § 36107. Mortgage, on what a Lien. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 3 A mortgage is a lien upon everything that would pas s by a grant of the property. SOURCE: CC § 2926. § 36108. Mortgagee not Entitled to Possession. A mortgage does not entitle the mortgagee to the po ssession of the property, unless authorized by the express terms of the mortgage, but after the execution of the mortgage the mortgagor may agr ee to such change of possession without a new consideration. SOURCE: CC § 2927. § 36109. Mortgage not a Personal Obligation. A mortgage does not bind the mortgagor personally t o perform the act for the performance of which it is a security, unle ss there is an express covenant therein to that effect. SOURCE: CC § 2928. § 36110. Waste. No person whose interest is subject to the lien of a mortgage may do any act which will substantially impair the mortgag ee's security. SOURCE: CC § 2929. § 36111. Subsequently Acquired Title. Title acquired by the mortgagor, subsequent to the execution of the mortgage, inures to the mortgagee as

lly impair the mortgag ee's security. SOURCE: CC § 2929. § 36111. Subsequently Acquired Title. Title acquired by the mortgagor, subsequent to the execution of the mortgage, inures to the mortgagee as security for t he debt in like manner as if acquired before the execution. SOURCE: CC § 2930. § 36112. Foreclosure. A mortgagee may foreclose the right of redemption o f the mortgagor in the manner prescribed by Title 7 of this Code (Civi l Procedure). SOURCE: CC § 2931. § 36113. Power of Sale. A power of sale may be conferred by a mortgagor upo n the mortgagee or any other person, to be exercised after a breach of the obligation for which the mortgage is a security. SOURCE: CC § 2932. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 4 § 36114. Power of Attorney to Execute. A power of attorney to execute a mortgage must be i n writing, sub- scribed, acknowledged, or proved, certified, and re corded in like manner as powers of attorney for grants of real property. SOURCE: CC § 2933. § 36115. Recording Assignment. An assignment of a mortgage may be recorded in like manner as a mortgage, and such record operates as notice to all persons subsequently deriving title to the

C § 2933. § 36115. Recording Assignment. An assignment of a mortgage may be recorded in like manner as a mortgage, and such record operates as notice to all persons subsequently deriving title to the mortgage from the assignor. SOURCE: CC § 2934. § 36116. Not Notice to Mortgagor. When the mortgage is executed as security for money due, or to become due, on a promissory note, bond, or other instrumen t, designated in the mortgage, the record of the assignment of the mortg age is not, of itself, notice to a mortgagor, his heirs or personal repres entatives, so as to invalidate any payment made by them, or any of them , to the person holding such note, bond, or other instrument. SOURCE: CC § 2935. § 36117. Passes by Assignment of Debt. The assignment of a debt secured by mortgage carrie s with it the security. SOURCE: CC § 2936. § 36118. Discharge of Mortgage. A recorded mortgage must be discharged upon the rec ord by the officer having custody thereof, on the presentation to him of a certificate signed by the mortgagee, his personal representatives or assi gns, acknowledged or proved and certified as prescribed by Title 21 Guam Code Annotated, Chapter 33, stating that the mortgage

ertificate signed by the mortgagee, his personal representatives or assi gns, acknowledged or proved and certified as prescribed by Title 21 Guam Code Annotated, Chapter 33, stating that the mortgage has been paid , satisfied or discharged. SOURCE: CC § 2939; amended by P.L. 5-54. § 36119. Satisfying by Foreign Executors. Foreign executors, administrators, and guardians ma y satisfy mortgages upon the records of Guam, upon producing and record ing in the Department of Land Management a duly certified and authenticat ed copy of their letters COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 5 testamentary, or of administration, or of guardians hip, and which certificate or authentication shall also recite that said lette rs have not been revoked. SOURCE: CC § 2939a amended by P.L. 5-54. § 36120. Duty of Mortgagee on Satisfaction. When any mortgage has been satisfied, the mortgagee or his assignee must immediately, on the demand of the mortgagor, e xecute, acknowledge, and deliver to him a certificate of the discharge t hereof, so as to entitle it to be recorded, or he must enter satisfaction, or caus e satisfaction of such mortgage to be entered of record; and any

and deliver to him a certificate of the discharge t hereof, so as to entitle it to be recorded, or he must enter satisfaction, or caus e satisfaction of such mortgage to be entered of record; and any mortgagee or assignee of such mortgage who refuses to execute, acknowledge, and d eliver to the mortgagor the certificate of discharge or to enter satisfacti on, or cause satisfaction of the mortgage to be entered, as provided in this Chapter , is liable to the mort- gagor, or his grantee or heirs, for all damages whi ch he or they may sustain by reason of such refusal, and shall also forfeit t o him or them the sum of one hundred dollars ($100.00). SOURCE: CC § 2941. § 36121. Bottomry or Respondentia not Affected. Contracts of bottomry or respondentia, although in the nature of mortgages, are not affected by any of the provision s of this Chapter. SOURCE: CC § 2942. § 36122. Description of Mortgaged Property. The description of the mortgaged property shall be such as to enable the parties to the mortgage or any other person, after reasonable inquiry and investigation, to identify the same. SOURCE: CC § 2943 amended by P.L. 5-54.

ortgaged property shall be such as to enable the parties to the mortgage or any other person, after reasonable inquiry and investigation, to identify the same. SOURCE: CC § 2943 amended by P.L. 5-54. ----------- ARTICLE 2 MORTGAGE OF REAL PROPERTY § 36201. What may be Mortgaged. § 36202. Form of Mortgage. § 36203. Defeasance Generally. § 36204. Acknowledging and Recording Mortgage. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 6 § 36201. What may be Mortgaged. Any interest in real property which is capable of b eing transferred may be mortgaged. SOURCE: CC § 2947. § 36202. Form of Mortgage. A mortgage of real property may be made in substant ially the following form; but may be made in any form in use in the Uni ted States, except in the form of deeds of trusts and conveyances with right to repurchase: 'This mortgage, made this ___ day of ____, in the y ear ____, by A.B., of __________, mortgagor, to C.D., of ____ _______, mortgagee, witnesseth: That the mortgagor mortgages to the mortgagee (her describe the property), as security for the payment to him o f _____ dollars, on (or before) the ____ day of ____ in the year ___ _, with interest hereon (or as security

rtgages to the mortgagee (her describe the property), as security for the payment to him o f _____ dollars, on (or before) the ____ day of ____ in the year ___ _, with interest hereon (or as security for the payment of an obliga tion describing it, etc.) _____________________________ 'A.B.' SOURCE: CC § 2948. 2015 NOTE: Section 36202 was inadvertently deleted after the 1992 update. Research has revealed that it was never repealed, a nd is therefore restored pursuant to authority granted by 1 GCA § 1606. § 36203. Defeasance Generally. When a grant of real property purports to be an ab solute conveyance, but is intended to be defeasible on the performance of certain conditions, such grant is not defeated or affected as against a ny person other than the grantee or his heirs or devisees, or persons having actual notice, unless an instrument of defeasance, duly executed and acknowl edged, shall have been recorded in the Department of Land Management. SOURCE: CC § 2950. § 36204. Acknowledging and Recording Mortgage. Mortgages of real property shall be acknowledged or proved, certified and recorded, in like manner and with like effect, as grants thereof.

: CC § 2950. § 36204. Acknowledging and Recording Mortgage. Mortgages of real property shall be acknowledged or proved, certified and recorded, in like manner and with like effect, as grants thereof. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 7 SOURCE: CC § 2952 amended by P.L. 5-54. ---------- ARTICLE 3 GUAM SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT OF 2010 SOURCE: Entire article added by P.L. 30-151:1 (May 25, 2010 ), effective July 31, 2010, pursuant to 18 GCA § 36323. § 36301. Title. § 36302. Legislative Findings and Intent. § 36303. Definitions. § 36304. License and Registration Required. § 36305. Guam License and Registration Application and Issuance. § 36306. Issuance of License. § 36307. Pre-Licensing and Re-Licensing Education o f Loan Originators. § 36308. Testing of Loan Originators. § 36309. Standards for License Renewal. § 36310. Continuing Education for Mortgage Loan Ori ginators. § 36311. Authority to Require License. § 36312. Nationwide Mortgage Licensing System and R egistry Information Challenge Process. § 36313. Enforcement Authorities, Violations and Pe nalties. § 36314. Surety Bond Required. § 36315.

icense. § 36312. Nationwide Mortgage Licensing System and R egistry Information Challenge Process. § 36313. Enforcement Authorities, Violations and Pe nalties. § 36314. Surety Bond Required. § 36315. Minimum Net Worth Required. § 36316. Confidentiality. § 36317. Investigation and Examination Authority. § 36318. Prohibited Acts and Practices. § 36319. Mortgage Call Reports. § 36320. Report to Nationwide Mortgage Licensing Sy stem and Registry. § 36321. Privately Insured Credit. § 36322. Unique Identifier Shown. § 36323. Effective Date. § 36324. Severability. § 36301. Title. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 8 This Act may be cited as the 'Guam Secure and Fair Enforcement for Mortgage Licensing Act of 2010, or Guam S.A.F.E. Mo rtgage Licensing Act of 2010.' § 36302. Legislative Findings and Intent. I Liheslaturan Guåhan finds that the activities of mortgage loan originators and the origination or offering of fina ncing for residential real property have a direct, valuable and immediate impa ct upon Guam’s consumers, Guam’s economy, the neighborhoods and co mmunities of Guam, and the housing and real estate industry.

or residential real property have a direct, valuable and immediate impa ct upon Guam’s consumers, Guam’s economy, the neighborhoods and co mmunities of Guam, and the housing and real estate industry. I Liheslaturan Guåhan finds that accessibility to mortgage credit is vit al to Guam’s residents. I Liheslatura also finds that it is essential for the protection of the residents of Guam and the stability of Guam’s econo my that reasonable standards for licensing and regulation of the busin ess practices of mortgage loan originators be imposed. I Liheslatura further finds that the obligations of mortgage loa n originators to consumers in connection with origina ting or making residential mortgage loans are such as to warrant the regulatio n of the mortgage lending process. The purpose of this Act is to protect cons umers seeking mortgage loans and to ensure that the mortgage lending indus try is operating without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators. Therefore, I Liheslaturan Guåhan establishes within this Act: (a) System of Supervision and Enforcement .

without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators. Therefore, I Liheslaturan Guåhan establishes within this Act: (a) System of Supervision and Enforcement . An effective system of supervision and enforcement of the mortgage lend ing industry, including: (1) The authority to issue licenses to conduct busi ness under this Act, including the authority to write rules or regulations or adopt procedures necessary to the licensing of pers ons covered under this Act. (2) The authority to deny, suspend, condition or re voke licenses issued under this Act. (3) The authority to examine, investigate and condu ct enforcement actions as necessary to carry out the i ntended purposes of this Act, including the authority to su bpoena witnesses COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 9 and documents, enter orders, including cease and de sist orders, order restitution and monetary penalties and order the removal and ban of individuals from office or employment. (b) Broad Administrative Authority. That the Commi ssioner shall have the broad administrative authority to adminis ter, interpret and enforce this Act, and promulgate rules

rom office or employment. (b) Broad Administrative Authority. That the Commi ssioner shall have the broad administrative authority to adminis ter, interpret and enforce this Act, and promulgate rules or regul ations implementing this Act, in order to carry out the intentions of I Liheslatura . § 36303. Definitions. For purposes of this Act, the following definitions shall apply: (a) Clerical or Support Duties. For purposes of this Subsection, the term 'Clerical or Support Duties' may include s ubsequent to the receipt of an application: (1) the receipt, collection, distribution, and anal ysis of information common for the processing or underwriti ng of a residential mortgage loan; and (2) communicating with a consumer to obtain the information necessary for the processing or underwr iting of a loan, to the extent that such communication does not include offering or negotiating loan rates or terms, or counseling cons umers about residential mortgage loan rates or terms. (b) Commissioner means Guam’s Commissioner of Banking and Insurance. (c) Depository Institution has the same meaning as in Section 3 of the Federal Deposit Insurance Act.

ortgage loan rates or terms. (b) Commissioner means Guam’s Commissioner of Banking and Insurance. (c) Depository Institution has the same meaning as in Section 3 of the Federal Deposit Insurance Act. It means any bank or savings association, including any credit union. (d) Federal Banking Agencies means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the N ational Credit Union Administration, and the Federal Deposit Insurance C orporation. (e) Immediate Family Member means a spouse, child, sibling, parent, grandparent, or grandchild. This includes s tepparents, stepchildren, stepsiblings, and adoptive relationsh ips. (f) Individual means a natural person. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 10 (g) Loan Processor or Underwriter means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing. (h) Mortgage Loan Originator means an individual who for compensation or gain or in the expectation of compe nsation or gain: (1) takes a residential

n of a person licensed, or exempt from licensing. (h) Mortgage Loan Originator means an individual who for compensation or gain or in the expectation of compe nsation or gain: (1) takes a residential mortgage loan application; or (2) offers or negotiates terms of a residential mor tgage loan; (A) does not include an individual engaged solely a s a loan processor or underwriter; (B) does not include a person or entity that only performs real estate brokerage activities and is li censed or registered in accordance with Guam law, unless the person or entity is compensated by a lender, a mortgage broke r, or other mortgage loan originator or by any agent of s uch lender, mortgage broker, or other mortgage loan ori ginator; and (C) does not include a person or entity solely invo lved in extensions of credit relating to timeshare plans, a s that term is defined in Section 101(53D) of Title 11, United Sta tes Code. (i) Nationwide Mortgage Licensing System and Registry means a mortgage licensing system developed and maintaine d by the Conference of State Bank Supervisors and the Americ an Association of Residential Mortgage Regulators for the licensing a nd registration of licensed

licensing system developed and maintaine d by the Conference of State Bank Supervisors and the Americ an Association of Residential Mortgage Regulators for the licensing a nd registration of licensed mortgage loan originators. (j) Non-profit Organization means any organization located within or off island from Guam that has a tax exempt statu s as a charitable organization, such as under Section 501(c)(3) of th e Internal Revenue Code. (k) Non-traditional Mortgage Product means any mortgage product other than a thirty (30) year fixed rate mo rtgage. (l) Person means a natural person, corporation, company, limit ed liability company, partnership, or association. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 11 (m) Real Estate Brokerage Activity means any activity that involves offering or providing real estate brokerag e services to the public, including: (1) acting as a real estate agent or real estate br oker for a buyer, seller, lessor, or lessee of real property; (2) bringing together parties interested in the sal e, purchase, lease, rental, or exchange of real property; (3) negotiating, on behalf of any party, any portio n of a contract relating to the sale,

(2) bringing together parties interested in the sal e, purchase, lease, rental, or exchange of real property; (3) negotiating, on behalf of any party, any portio n of a contract relating to the sale, purchase, lease, ren tal, or exchange of real property (other than in connection with provid ing financing with respect to any such transaction); (4) engaging in any activity for which a person eng aged in the activity is required to be registered or licens ed as a real estate agent or real estate broker under any applicable la w; and (5) offering to engage in any activity, or act in a ny capacity, described in Subsections (1), (2), (3), or (4) of t his Subsection (m). (n) Registered Mortgage Loan Originator means any individual who: (1) meets the definition of mortgage loan originato r and is an employee of: (A) a depository institution; (B) a subsidiary that is: (i) owned and controlled by a depository institution; and (ii) regulated by a Federal banking agency; or (iii) an institution regulated by the Farm Credit Administration; and (iv) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensi ng System and Registry.

y; or (iii) an institution regulated by the Farm Credit Administration; and (iv) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensi ng System and Registry. (o) Representations to the public . An individual engaging solely in loan processor or underwriter activities, shall not represent to the COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 12 public, through advertising or other means of commu nicating or providing information, including the use of busines s cards, stationery, brochures, signs, rate lists, or other promotional items, that such individual can or will perform any of the activitie s of a mortgage loan originator. (p) Residential Mortgage Broker Branch means any branch office located within or off island from Guam that provide s services from other than a main office located within Guam, which for compensation or gain, or in the expectation of compensation or g ain, (1) assists a person in obtaining or applying to obtain a residen tial mortgage loan; or (2) holds himself or herself out as being able to a ssist a person in obtaining or applying to obtain a residential mortg age loan.

in obtaining or applying to obtain a residen tial mortgage loan; or (2) holds himself or herself out as being able to a ssist a person in obtaining or applying to obtain a residential mortg age loan. A mortgage broker either prepares a residential mortgage loan for funding by another entity or table-funds the residential mortg age loan. (q) Residential Mortgage Broker Company means any company located within Guam which for compensation or gain, or in the expectation of compensation or gain, (1) assists a person in obtaining or applying to obtain a residential mortgage loan; or (2) holds himself or herself out as being able to assist a person in obt aining or applying to obtain a residential mortgage loan. A mortgage brok er either prepares a residential mortgage loan for funding by another en tity or table-funds the residential mortgage loan. (r) Residential Mortgage Lender Branch means any branch office located within or off island from Guam that provide s services from other than a main office located within Guam, which for a fee, compensation or gain takes, offers, negotiates, app roves or disapproves the financing of a loan secured by a mortgage with respect to any dwelling

a main office located within Guam, which for a fee, compensation or gain takes, offers, negotiates, app roves or disapproves the financing of a loan secured by a mortgage with respect to any dwelling that is located in Guam. (s) Residential Mortgage Lender Company means any company located within Guam that for a fee, compensation or gain takes, offers, negotiates, approves or disapproves the financing o f a loan secured by a residential mortgage with respect to any dwelling t hat is located in Guam. (t) Residential Mortgage Lender and Servicer Branch means any branch office located within or off island from Gua m that provides services from other than a main office located with in Guam, which for a fee or compensation or gain takes, offers, negoti ates, approves or COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 13 disapproves the financing of a loan and provides se rvices, which include the receipt of periodic payments from a bor rower and making payments of principal and interest, and other payme nts pursuant to the terms of a loan secured by a residential mortgage w ith respect to any dwelling that is located in Guam.

a bor rower and making payments of principal and interest, and other payme nts pursuant to the terms of a loan secured by a residential mortgage w ith respect to any dwelling that is located in Guam. (u) Residential Mortgage Lender and Servicer Company means any company located within Guam that for a fee, com pensation or gain takes, offers, negotiates, approves or disapproves the financing of a loan and provides services, which include the recei pt of periodic payments from a borrower and making payments of pri ncipal and interest, and other payments pursuant to the terms of a loan secured by a residential mortgage with respect to any dwelling that is located in Guam. (v) Residential Mortgage Servicer Branch means any branch office located within or off island from Guam that for a fee or compensation provides services, which include the r eceipt of periodic payments from a borrower and making payments of pri ncipal and interest, and other payments pursuant to the terms of the loan secured by a residential mortgage. (w) Residential Mortgage Servicer Company means any company located within or off island from Guam that for a f ee or compensation provides services, which include the

ured by a residential mortgage. (w) Residential Mortgage Servicer Company means any company located within or off island from Guam that for a f ee or compensation provides services, which include the receipt of per iodic payments from a borrower and making payments of principal and int erest, and other payments pursuant to the terms of the loan secured by residential mortgage. (x) Residential Mortgage Loan means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security i nterest on a dwelling (as defined in Section 103(v) of the Truth in Lendi ng Act) or residential real estate upon which is constructed or intended t o be constructed a dwelling (as so defined). (y) Residential Real Estate means any real property located in Guam, upon which is constructed or intended to be c onstructed a dwelling. (z) Unique Identifier means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 14 SOURCE: Added by P.L. 30-151:1 (May 25, 2010), amended by P .L. 33-207:1 (Dec. 15, 2016.

ide Mortgage Licensing System and Registry. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 14 SOURCE: Added by P.L. 30-151:1 (May 25, 2010), amended by P .L. 33-207:1 (Dec. 15, 2016. 2017 NOTE: The definitions, including those added by P.L. 33 -207:1, have been alphabetized pursuant to P.L. 33-207: Section 2. Guam Compiler of Laws to Codify. The Guam Compiler of Laws shall codify, accordingly and in alphabetical order, the subsections of § 36303, Article 3, Chapter 36, Title 18, Guam C ode Annotated. 2011 NOTE: Reference to the 'Banking and Insurance Commissio ner' changed to the 'Commissioner of Banking and Insurance' pursuan t to P.L. 27-088:10 (May 6, 2004). § 36304. License and Registration Required. (a) General. An individual, unless specifically ex empted from this Act under Subsection (c) of this Section, shall not engage in the business of a mortgage loan originator with respect to any dwelli ng located in Guam without first obtaining and maintaining annually a license under this Act. Each licensed mortgage loan originator must registe r with and maintain a valid unique identifier issued by the Nationwide Mo rtgage Licensing System and Registry.

annually a license under this Act. Each licensed mortgage loan originator must registe r with and maintain a valid unique identifier issued by the Nationwide Mo rtgage Licensing System and Registry. (b) Effective Date. In order to facilitate an orde rly transition to licensing and to minimize disruption in the mortgag e marketplace, the effective date for Subsection (a) of this Section s hall be July 31, 2010, or such later date approved by the Secretary of the U. S. Department of Housing and Urban Development, pursuant to the authority gr anted under Public Law 110-289, Section 1508(a). (c) Exemption from this Act. The following are exe mpt from this Act: (1) Registered Mortgage Loan Originators, when acti ng for an entity described in § 36303(n); (2) Any individual who offers or negotiates terms o f a residential mortgage loan with or on behalf of an immediate fam ily member of the individual; (3) Any individual who offers or negotiates terms o f a residential mortgage loan secured by a dwelling that served as the individual’s residence; or (4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the

secured by a dwelling that served as the individual’s residence; or (4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 15 compensated by a lender, a mortgage broker, or othe r mortgage loan originator or by any agent of such lender, mortgage broker, or other mortgage loan originator. (d) Independent Contractor Loan Processors or Under writers. A loan processor or underwriter who is an independent cont ractor may not engage in the activities of a loan processor or underwrite r unless such independent contractor loan processor or underwriter obtains an d maintains a license under § 36304(a). Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Mo rtgage Licensing System and Registry. (e) Commissioner Authority to Establish Licensing R ules, Regulations or Interim Procedures and Accept Early Applications .

dentifier issued by the Nationwide Mo rtgage Licensing System and Registry. (e) Commissioner Authority to Establish Licensing R ules, Regulations or Interim Procedures and Accept Early Applications . For the purposes of implementing an orderly and efficient licensing pro cess, the Commissioner may establish licensing rules or regulations and in terim procedures for licensing and acceptance of applications, pursuant to the Administrative Adjudication Law. For previously registered or lice nsed individuals, the Commissioner may establish expedited review and lic ensing procedures, pursuant to the Administrative Adjudication Law. § 36305. Guam License and Registration Application and Issuance. (a) Application Form. Applicants for a license shall apply in a form as prescribed by the Commissioner. Each such form shall contain content as set forth by rule, regulation, instruction or proce dure of the Commissioner and may be changed or updated as necessary by the C ommissioner in order to carry out the purposes of this Act. (b) Commissioner May Establish Relationships or Con tracts. In order to fulfill the purposes of this Act, the Commission er is authorized to establish relationships

arry out the purposes of this Act. (b) Commissioner May Establish Relationships or Con tracts. In order to fulfill the purposes of this Act, the Commission er is authorized to establish relationships or contracts with the Natio nwide Mortgage Licensing System and Registry, or other entities designated b y the Nationwide Mortgage Licensing System and Registry, to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this Act. (c) Waive or Modify Requirements. For the purpose of participating in the Nationwide Mortgage Licensing System & Registry , the Commissioner is authorized to waive or modify, in whole or in pa rt, by rule, regulation or order, any or all of the requirements of this Chapt er, and to establish new COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 16 requirements as reasonably necessary to participate in the Nationwide Mortgage Licensing System & Registry. (d) Background Checks. In connection with an applic ation for licensing as a mortgage loan originator, the applic ant shall , at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the

tion with an applic ation for licensing as a mortgage loan originator, the applic ant shall , at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant’s identity, in cluding: (1) fingerprints for submission to the Federal Bure au of Investigation, and any governmental agency or entit y authorized to receive such information for a state, national and international criminal history background check; and (2) personal history and experience in a form presc ribed by the Nationwide Mortgage Licensing System and Registry, including the submission of authorization for the Nationwide Mort gage Licensing System and Registry and the Commissioner to obtain the following: (A) an independent credit report obtained from a co nsumer reporting agency described in Section 603(p) of the Fair Credit Reporting Act; and (B) information related to any administrative, civi l or criminal findings by any governmental jurisdiction. (e) Agent for Purposes of Requesting and Distributi ng Criminal Information. For the purposes of this Section and in order to r educe the points of contact which the Federal Bureau of Inves tigation may have to maintain

es of Requesting and Distributi ng Criminal Information. For the purposes of this Section and in order to r educe the points of contact which the Federal Bureau of Inves tigation may have to maintain for purposes of Subsection (d)(1) and (2)( B) of this Section, the Commissioner may use the Nationwide Mortgage Licens ing System and Registry as a channeling agent for requesting infor mation from and distributing information to the Department of Justi ce or any governmental agency. (f) Agent for Purposes of Requesting and Distributi ng Non-Criminal Information. For the purposes of this Section and i n order to reduce the points of contact which the Commissioner may have t o maintain for purposes of Subsection (d)(2)(A) and (B) of this Se ction, the Commissioner may use the Nationwide Mortgage Licensing System an d Registry as a channeling agent for requesting and distributing in formation to and from any source so directed by the Commissioner. § 36306. Issuance of License. The Commissioner shall not issue a mortgage loan originator license COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH.

d from any source so directed by the Commissioner. § 36306. Issuance of License. The Commissioner shall not issue a mortgage loan originator license COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 17 unless the Commissioner makes, at a minimum, the followin g findings: (a) No License Revocation. The applicant has never had a mortgage loan originator license revoked in any gov ernmental jurisdiction, except that a subsequent formal vacation of such revocation shall not be deemed a revocation. (b) No Felony Conviction . The applicant has not been convicted of, or pled guilty or nocontendere to, a felony in a domestic, foreign, or military court: (1) during the seven (7)-year period preceding the date of the application for licensing and registration; or (2) at any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a b reach of trust, or money laundering; and (3) provided that any pardon of a conviction shall not be a conviction for purposes of this Subsection. (c) Character and Fitness . The applicant has demonstrated financial responsibility, character, and general fi tness such as to command the confidence of the

nviction for purposes of this Subsection. (c) Character and Fitness . The applicant has demonstrated financial responsibility, character, and general fi tness such as to command the confidence of the community and to warr ant a determination that the mortgage loan originator wil l operate honestly, fairly, and efficiently within the purposes of this Act. (1) For purposes of this Subsection, a person has s hown that he or she is not financially responsible when he or she has shown a disregard in the management of his or her own fin ancial condition. A determination that an individual has not shown financial responsibility may include, but not be limited to: (A) current outstanding judgments, except judgments solely as a result of medical expenses; (B) current outstanding tax liens or other governme nt liens and filings; (C) foreclosures within the past three (3) years; (D) a pattern of seriously delinquent accounts with in the past three (3) years. (d) Pre-Licensing Education. The applicant has com pleted the pre-licensing education requirement described in § 36307 of this Act. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 18 (e) Written Test.

Education. The applicant has com pleted the pre-licensing education requirement described in § 36307 of this Act. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 18 (e) Written Test. The applicant has passed a writt en test that meets the test requirement described in § 36308 of this Act. (f) Surety Bond or Minimum Net Worth Requirement . The applicant has met the surety bond requirement of § 36314 or the minimum net worth requirement of § 36315 on this Ac t. § 36307. Pre-Licensing and Re-Licensing Education o f Loan Originators. (a) Minimum Educational Requirements. In order to meet the pre- licensing education requirement referred to in § 36 306 (d) of this Act, a person shall complete at least twenty (20) hours of education approved in accordance with Subsection (b) of this Section, whi ch shall include at least : (1) three (3) hours of Federal law and regulations; (2) three (3) hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues ; and (3) two (2) hours of training related to lending st andards for the nontraditional mortgage product marketplace. (b) Approved Educational Courses.

, consumer protection, and fair lending issues ; and (3) two (2) hours of training related to lending st andards for the nontraditional mortgage product marketplace. (b) Approved Educational Courses. For the purposes of Subsection (a) of this Section, pre-licensing education course s shall be reviewed, and approved by the Nationwide Mortgage Licensing Syste m and Registry based upon reasonable standards. Review and approval of a pre-licensing education course shall include review and approval of the course provider . (c) Approval of Employer and Affiliate Educational Courses. Nothing in this Section shall preclude any pre-licensing ed ucation course, as approved by the Nationwide Mortgage Licensing Syste m and Registry that is provided by the employer of the applicant or an ent ity which is affiliated with the applicant by an agency contract, or any su bsidiary or affiliate of such employer or entity. (d) Venue of Education. Pre-licensing education may be offered either in a classroom, online or by any other means approved by the Nationwide Mortgage Licensing System and Registry. (e) Reciprocity of Education.

Education. Pre-licensing education may be offered either in a classroom, online or by any other means approved by the Nationwide Mortgage Licensing System and Registry. (e) Reciprocity of Education. The pre-licensing education requirements approved by the Nationwide Mortgage Li censing System and Registry in Subsections (a)(1), (2) and (3) of this Section for any State shall be accepted as credit towards completion of pre-lic ensing education requirements in Guam. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 19 (f) Re-Licensing Education Requirements. A person previously licensed under this Act, subsequent to the Effectiv e Date of this Act and applying to be licensed again, must prove that they have completed all of the continuing education requirements for the year in w hich the license was last held. § 36308. Testing of Loan Originators. (a) Testing of Loan Originators, General. In order to meet the written test requirement referred to in § 36306 (e) of this Act, an individual shall pass, in accordance with the standards established under this Subsection, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and

this Act, an individual shall pass, in accordance with the standards established under this Subsection, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test prov ider approved by the Nationwide Mortgage Licensing System and Registry b ased upon reasonable standards. (b) Qualified Test. A written test shall not be treated as a qualified written test for purposes of Subsection (a) of this Section, unless the test adequately measures the applicant’s knowledge and c omprehension in appropriate subject areas, including: (1) Ethics; (2) Federal law and regulation pertaining to mortga ge origination; (3) Guam law and regulation pertaining to mortgage origination; (4) Federal and Guam law and regulation, including instruction on fraud, consumer protection, the nontraditional m ortgage marketplace, and fair lending issues. (c) Testing Location. Nothing in this Section shall prohibit a test provider approved by the Nationwide Mortgage Licens ing System and Registry from providing a test at the location of t he employer of the applicant or the location of any subsidiary or affi liate of the employer of the applicant, or the

ortgage Licens ing System and Registry from providing a test at the location of t he employer of the applicant or the location of any subsidiary or affi liate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator. (d) Minimum Competence: (1) Passing Score. An individual shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than seventy-five percent (75%) correct answers to questions. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 20 (2) Initial Retests. An individual may retake a tes t three (3) consecutive times with each consecutive taking occu rring at least thirty (30) days after the preceding test. (3) Subsequent Retests. After failing three (3) con secutive tests, an individual shall wait at least six (6) months before taking the test again. (4) Retest After Lapse of License. A licensed mortg age loan originator who fails to maintain a valid license fo r a period of five (5) years or longer shall retake the test, not taking into account any time during which such individual

licensed mortg age loan originator who fails to maintain a valid license fo r a period of five (5) years or longer shall retake the test, not taking into account any time during which such individual is a registered mortga ge loan originator. § 36309. Standards for License Renewal. (a) General. The minimum standards for license renewal for mortg age loan originators shall include the following: (1) The mortgage loan originator continues to meet the minimum standards for license issuance under § 36305 (a) th rough (f) of this Act. (2) The mortgage loan originator has satisfied the annual continuing education requirements described in § 36 310 of this Act. (3) The mortgage loan originator has paid all requi red fees for renewal of the license. (b) Failure to Satisfy Minimum Standards for Licens e Renewal. The license of a mortgage loan originator failing to sa tisfy the minimum standards for license renewal shall expire. The Commissioner may adopt procedures for the reinstatement of expired license s consistent with the standards established by the Nationwide Mortgage Li censing System and Registry. § 36310. Continuing Education for Mortgage Loan Ori ginators. (a) General.

nt of expired license s consistent with the standards established by the Nationwide Mortgage Li censing System and Registry. § 36310. Continuing Education for Mortgage Loan Ori ginators. (a) General. In order to meet the annual continuing education requirements referred to in § 36309 (a)(2), a licen sed mortgage loan originator shall complete at least eight (8) hours of education approved in accordance with Subsection (b) of this Section, whi ch shall include at least : (1) three (3) hours of Federal law and regulations; (2) two (2) hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues ; and COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 21 (3) two (2) hours of training related to lending st andards for the nontraditional mortgage product marketplace. (b) Approved Educational Courses. For the purposes of Subsection (a) of this Section, continuing education courses shall be reviewed, and approved by the Nationwide Mortgage Licensing Syste m and Registry based upon reasonable standards. Review and approval of a continuing education course shall include review and approval of the course provider .

the Nationwide Mortgage Licensing Syste m and Registry based upon reasonable standards. Review and approval of a continuing education course shall include review and approval of the course provider . (c) Approval of Employer and Affiliate Educational Courses. Nothing in this Section shall preclude any education course , as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the mortgage loan originator, or an entity which is affiliated with the mortgage loan originator by an agency cont ract, or any subsidiary or affiliate of such employer or entity. (d) Venue of Education. Continuing education may be offered either in a classroom, online or by any other means approv ed by the Nationwide Mortgage Licensing System and Registry. (e) Calculation of Continuing Education Credits. A licensed mortgage loan originator: (1) except for § 36309 (b) and Subsection (i) of this Section , may only receive credit for a continuing education course i n the year in which the course is taken; and (2) may not take the same approved course in the same or successive years to meet the annual requirements fo r continuing education. (f) Instructor Credit.

the year in which the course is taken; and (2) may not take the same approved course in the same or successive years to meet the annual requirements fo r continuing education. (f) Instructor Credit. A licensed mortgage loan or iginator who is an approved instructor of an approved continuing educa tion course may receive credit for the licensed mortgage loan originator’s own annual continuing education requirement at the rate of two (2) hours credit for every one (1) hour taught. (g) Reciprocity of Education. A person having succ essfully completed the education requirements approved by the Nationwi de Mortgage Licensing System and Registry in Subsections (a)(1), (2) and (3) of this Section for any State shall be accepted as credit towards completion of contin uing education requirements in Guam. (h) Lapse in License. A licensed mortgage loan orig inator who subsequently becomes unlicensed must complete the c ontinuing education COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 22 requirements for the last year in which the license was held prior to issuance of a new or renewed license. (i) Make up of Continuing Education.

GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 22 requirements for the last year in which the license was held prior to issuance of a new or renewed license. (i) Make up of Continuing Education. A person meeti ng the requirements of § 36309 (a)(1) and (3) of this Act may make up any deficiency in continuing education as established b y rule or regulation of the Commissioner. § 36311. Authority to Require License. In addition to any other duties imposed upon the Co mmissioner by law, the Commissioner shall require mortgage loan originators to be licensed a nd registered through the Nationwide Mortgage Licensin g System and Registry. In order to carry out this requirement, the Commiss ioner is authorized to participate in the Nationwide Mortgage Licensing Sy stem and Registry. For this purpose, the Commissioner may establish Rules and Regulations as necessary, pursuant to the Administrative Adjudicat ion Law, including, but not limited to: (a) Background Checks. Background checks for: (1) criminal history through fingerprint or other d atabases; (2) civil or administrative records; (3) Credit history; or (4) any other information as deemed necessary by th e Nationwide Mortgage

or: (1) criminal history through fingerprint or other d atabases; (2) civil or administrative records; (3) Credit history; or (4) any other information as deemed necessary by th e Nationwide Mortgage Licensing System and Registry. (b) Fees. The payment of fees to apply for or rene w licenses through the Nationwide Mortgage Licensing System an d Registry; (c) Setting Dates. The setting or resetting as nec essary of renewal or reporting dates; and (d) Other requirements for amending or surrendering a license or any other such activities as the Commissioner deems necessary for participation in the Nationwide Mortgage Licensing System and Registry. § 36312. Nationwide Mortgage Licensing System and R egistry Information Challenge Process. The Commissioner shall establish a process whereby mortgage loan originators may challenge information entered into the Nationwide Mortgage Licensing System and Registry by the Commissioner. COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 23 § 36313. Enforcement Authorities, Violations and Pe nalties. (a) In order to ensure the effective supervision an d enforcement of this Act, the Commissioner may, pursuant to the Administ rative

ES 23 § 36313. Enforcement Authorities, Violations and Pe nalties. (a) In order to ensure the effective supervision an d enforcement of this Act, the Commissioner may, pursuant to the Administ rative Adjudication Law: (1) Deny, suspend, revoke, condition or decline to renew a license for a violation of this Act, rules or regul ations issued under this Act, or order or directive entered under this Act. (2) Deny, suspend, revoke, condition or decline to renew a license if an applicant or licensee fails at any ti me to meet the requirements of § 36306 or § 36309 of this Act, or withholds information or makes a material misstatement in an application for a license or renewal of a license. (3) Order restitution against persons subject to th is Act for violations of this Act. (4) Impose fines on persons subject to this Act pur suant to Subsections (b), (c) and (d) of this Section. (5) Issue orders or directives under this Act as fo llows: (A) Order or direct persons subject to this Act to cease and desist from conducting business, including immediat e temporary orders to cease and desist. (B) Order or direct persons subject to this Act to cease any harmful activities or violations of

cease and desist from conducting business, including immediat e temporary orders to cease and desist. (B) Order or direct persons subject to this Act to cease any harmful activities or violations of this Act, inclu ding immediate temporary orders to cease and desist. (C) Enter immediate temporary orders to cease busin ess under a license or interim license issued pursuant to the authority granted under § 36304 (e) of this Act if the Commis sioner determines that such license was erroneously grante d or the licensee is currently in violation of this Act; (D) Order or direct such other affirmative action a s the Commissioner deems necessary. (b) The Commissioner may impose a civil penalty on a mortgage loan originator or person subject to this Act, if the Co mmissioner finds, on the record after notice and opportunity for hearing, th at such mortgage loan originator or person subject to this Act has violat ed or failed to comply with COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 24 any requirement of this Act or any regulation presc ribed by the Commissioner under this Act or order issued under a uthority of this Act.

201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 24 any requirement of this Act or any regulation presc ribed by the Commissioner under this Act or order issued under a uthority of this Act. (c) The maximum amount of penalty for each act or o mission described in Subsection (b) of this Section shall be Twenty-five Thousand Dollars ($25,000). (d) Each violation or failure to comply with any di rective or order of the Commissioner is a separate and distinct violati on or failure. § 36314. Surety Bond Required. (a) Coverage, Form and Regulations. Each mortgage loan originator shall be covered by a surety bond in accordance with thi s Section. In the event that the mortgage loan originator is an emplo yee or exclusive agent of a person subject to this Act, the surety bond of su ch person subject to this Act can be used in lieu of the mortgage loan origin ator’s surety bond requirement. (1) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in Subse ction (b) of this Section. (2) The surety bond shall be in a form as prescribed by the Commissioner.

bond shall provide coverage for each mortgage loan originator in an amount as prescribed in Subse ction (b) of this Section. (2) The surety bond shall be in a form as prescribed by the Commissioner. (3) The Commissioner may promulgate rules or regula tions with respect to the requirements for such surety bonds a s are necessary to accomplish the purposes of this Act. (b) Penal Sum of Surety Bond. The penal sum of the surety bond shall be maintained in an amount that reflects the dolla r amount of loans originated, as determined by the Commissioner. (c) Action on Bond. When an action is commenced on a licensee’s bond, the Commissioner may require the filing of a new bond. (d) New Bond. Immediately upon recovery upon any ac tion on the bond, the licensee shall file a new bond. § 36315. Minimum Net Worth Required. A minimum net worth shall be continuously maintained for mortgage loan originators in accordance with this Section. (a) In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this Act, th e net worth of such COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH.

ection. (a) In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this Act, th e net worth of such COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 25 person subject to this Act can be used in lieu of t he mortgage loan originator’s minimum net worth requirement. (b) Minimum net worth shall be maintained in an amount that reflects the dollar amount of loans originated, as determined by the Commissioner. (c) The Commissioner may promulgate rules or regula tions, in accordance with the Administrative Adjudication Law , with respect to the requirements for minimum net worth as are neces sary to accomplish the purposes of this Act. 2017 NOTE: Subsection/subitem designations altered pursuant to the authority of 1 GCA § 1606. § 36316. Confidentiality. In order to promote more effective regulation and r educe regulatory burden through supervisory information sharing: (a) Protections. Except as otherwise provided in Public Law 110- 289, Section 1512, the requirements under any Feder al law or Guam law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licens ing System

0- 289, Section 1512, the requirements under any Feder al law or Guam law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licens ing System and Registry, and any privilege arising under Federal o r State law (including the rules of any Federal or State court) with respect to such information or material, shall continue to apply to such information or material after the information or material has been disclosed to the Nationwide Mortgage Licensing System and Registry. Such information and material may be shared with all Sta te and Federal regulatory officials with mortgage industry oversig ht authority without the loss of privilege or the loss of confidentialit y protections provided by Federal law or Guam law. (b) Agreements and Sharing Arrangements. For these purposes, the Commissioner is authorized to enter into agreem ents or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations represen ting governmental agencies as established by rule, regulation or orde r of the Commissioner.

k Supervisors, the American Association of Residential Mortgage Regulators, or other associations represen ting governmental agencies as established by rule, regulation or orde r of the Commissioner. (c) Non-applicability of Certain Requirements. Information or material that is subject to a privilege or confiden tiality under Subsection COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 26 (a) of this Section shall not be subject to: (1) disclosure under any Federal or State law gover ning the disclosure to the public of information held by an officer or an agency of the Federal Government or the respective State; or (2) subpoena or discovery, or admission into eviden ce, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Mor tgage Licensing System and Registry with respect to such information or material, the person to whom such information or ma terial pertains waives, in whole or in part, in the discretion of s uch person, that privilege. (d) Public Access to Information. This Section shall not apply with respect to the information or material relatin g to the employment history of, and publicly

retion of s uch person, that privilege. (d) Public Access to Information. This Section shall not apply with respect to the information or material relatin g to the employment history of, and publicly adjudicated disciplinary a nd enforcement actions against, mortgage loan originators that is included in the Nationwide Mortgage Licensing System and Registry f or access by the public. § 36317. Investigation and Examination Authority. In addition to any authority allowed under this Act , the Commissioner shall have the authority to conduct investigations and e xaminations as follows: (a) Authority to Access Information. For purposes o f initial licensing, license renewal, license suspension, lic ense conditioning, license revocation or termination, or general or sp ecific inquiry or investigation to determine compliance with this Act , the Commissioner shall have the authority to access, receive and use any books, accounts, records, files, documents, information or evidence, including, but not limited to: (1) criminal, civil and administrative history info rmation, including non-conviction data as specified in Title 9, Guam Code Annotated, the Criminal and Correctional Code; (2)

g, but not limited to: (1) criminal, civil and administrative history info rmation, including non-conviction data as specified in Title 9, Guam Code Annotated, the Criminal and Correctional Code; (2) personal history and experience information, in cluding independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the Fair Cred it Reporting Act; and COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 27 (3) any other documents, information or evidence th e Commissioner deems relevant to the inquiry or inves tigation, regardless of the location, possession, control or custody of such documents, information or evidence. (b) Investigation, Examination, and Subpoena Author ity. For the purposes of investigating violations or complaints arising under this Act, or for the purposes of examination, the Commis sioner may review, investigate, or examine any licensee, individual or person subject to this Act, as often as necessary in order to carry out th e purposes of this Act. The Commissioner may direct, subpoena, or order th e attendance of and examine under oath all persons whose testimony may be required about the loans or the

er to carry out th e purposes of this Act. The Commissioner may direct, subpoena, or order th e attendance of and examine under oath all persons whose testimony may be required about the loans or the business or subject matter o f any such examination or investigation, and may direct, subpo ena, or order such person to produce books, accounts, records, files, and any other documents the Commissioner deems relevant to the in quiry. (c) Availability of Books and Records. Each license e, individual or person subject to this Act shall make available to the Commissioner upon request the books and records relating to the operations of such licensee, individual or person subject to this Act. The Commissioner shall have access to such books and records, and intervi ew the officers, principals, mortgage loan originators, employees, i ndependent contractors, agents, and customers of the licensee, individual or person subject to this Act concerning their business. (d) Reports and Other Information as Directed. Each licensee, individual or person subject to this Act shall make or compile reports or prepare other information as directed by the Commis sioner in order to carry out the purposes

ion as Directed. Each licensee, individual or person subject to this Act shall make or compile reports or prepare other information as directed by the Commis sioner in order to carry out the purposes of this Section, including, but not limited to: (1) accounting compilations; (2) information lists and data concerning loan tran sactions in a format prescribed by the Commissioner; or (3) such other information deemed necessary to carr y out the purposes of this Section. (e) Control Access to Records. In making any exami nation or investigation authorized by this Act, the Commissio ner may control access to any documents and records of the licensee or person under examination or investigation. The Commissioner may take possession COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 28 of the documents and records or place a person in e xclusive charge of the documents and records in the place where they a re usually kept. (1) During the period of control, no individual or person shall remove or attempt to remove any of the documents an d records except pursuant to a court order or with the consen t of the Commissioner.

1) During the period of control, no individual or person shall remove or attempt to remove any of the documents an d records except pursuant to a court order or with the consen t of the Commissioner. (2) Unless the Commissioner has reasonable grounds to believe the documents or records of the licensee ha ve been, or are at risk of being altered or destroyed for purposes of concealing a violation of this Act, the licensee or owner of the documents and records shall have access to the documents or records as necessa ry to conduct its ordinary business affairs. (f) Additional Authority. In order to carry out the purposes of this Section, the Commissioner may: (1) retain attorneys, accountants, or other profess ionals and specialists as examiners, auditors, or investigator s to conduct or assist in the conduct of examinations or investigat ions; (2) enter into agreements or relationships with oth er government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharin g resources, standardized or uniform methods or procedures, and documents, records, information or evidence obtained under thi s Section; (3) use, hire, contract or

reduce regulatory burden by sharin g resources, standardized or uniform methods or procedures, and documents, records, information or evidence obtained under thi s Section; (3) use, hire, contract or employ public or private ly available analytical systems, methods or software t o examine or investigate the licensee, individual or person subj ect to this Act; (4) accept and rely on examination or investigation reports made by other government officials within or withou t Guam; or (5) accept audit reports made by an independent cer tified public accountant for the licensee, individual or p erson subject to this Act in the course of that part of the examinat ion covering the same general subject matter as the audit and may in corporate the audit report in the report of the examination, repo rt of investigation or other writing of the Commissioner. (g) Effect of Authority. The authority of this Sec tion shall remain in effect, whether such a licensee, individu al or person subject to this Act acts or claims to act under any licensi ng or registration law COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 29 of Guam, or claims to act without such authority.

subject to this Act acts or claims to act under any licensi ng or registration law COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 29 of Guam, or claims to act without such authority. (h) Withhold Records. No licensee, individual or person subject to investigation or examination under this Section may knowingly withhold, abstract, remove, mutilate, destroy, or s ecrete any books, records, computer records, or other information. 2017 NOTE: Subitem designations added pursuant to the authorit y of 1 GCA § 1606. § 36318. Prohibited Acts and Practices. It is a violation of this Act for a person or indiv idual subject to this Act to: (a) directly or indirectly employ any scheme, devic e, or artifice to defraud or mislead borrowers or lenders or to defra ud any person; (b) engage in any unfair or deceptive practice towa rd any person; (c) obtain property by fraud or misrepresentation; (d) solicit or enter into a contract with a borrowe r that provides in substance that the person or individual subject to this Act may earn a fee or commission through 'best efforts' to obtain a loan even though no loan is actually obtained for the borrower; (e) solicit, advertise, or enter

rson or individual subject to this Act may earn a fee or commission through 'best efforts' to obtain a loan even though no loan is actually obtained for the borrower; (e) solicit, advertise, or enter into a contract fo r specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, o r contracting; (f) conduct any business covered by this Act withou t holding a valid license as required under this Act, or assist , or aid and abet any person in the conduct of business under this Act wi thout a valid license as required under this Act; (g) fail to make disclosures as required by this Ac t and any other applicable Guam or Federal law including regulation s thereunder; (h) fail to comply with this Act or rules or regula tions promulgated under this Act, or fail to comply with any other State or Federal law, including the rules and regulations th ereunder, applicable to any business authorized or conducted under this Act; (i) make, in any manner, any false or deceptive sta tement or representation including, with regard to the rates, points, or other financing terms or conditions for a residential mor tgage

this Act; (i) make, in any manner, any false or deceptive sta tement or representation including, with regard to the rates, points, or other financing terms or conditions for a residential mor tgage loan, or engage in bait and switch advertising; COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 30 (j) negligently make any false statement or knowing ly and willfully make any omission of material fact in con nection with any information or reports filed with a governmental ag ency or the Nationwide Mortgage Licensing System and Registry, or in connection with any investigation conducted by the Commissione r or another governmental agency; (k) make any payment, threat or promise, directly o r indirectly, to any person for the purposes of influencing the inde pendent judgment of the person in connection with a residential mortgag e loan, or make any payment threat or promise, directly or indirectly, to any appraiser of a property, for the purposes of influencing the indep endent judgment of the appraiser with respect to the value of the prop erty; (l) collect, charge, attempt to collect or charge o r use or propose any agreement purporting to collect or charge any f ee

ndent judgment of the appraiser with respect to the value of the prop erty; (l) collect, charge, attempt to collect or charge o r use or propose any agreement purporting to collect or charge any f ee prohibited by this Act; (m) cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer ; and (n) fail to truthfully account for monies belonging to a party to a residential mortgage loan transaction. § 36319. Mortgage Call Reports. Each mortgage licensee shall submit to the Nationwide Mortgage Licensing System and Registry reports of condition, which shall be in such form and shall contain such information as the Nationwide Mortgag e Licensing System and Registry may require. § 36320. Report to Nationwide Mortgage Licensing Sy stem and Registry. The Commissioner is required to report regularly vi olations of this Act, as well as enforcement actions and other relevant i nformation, to the Nationwide Mortgage Licensing System and Registry, subject to the provisions contained in § 36316 of this Act. § 36321. Privately Insured Credit.

ement actions and other relevant i nformation, to the Nationwide Mortgage Licensing System and Registry, subject to the provisions contained in § 36316 of this Act. § 36321. Privately Insured Credit. Non-federally insured credit unions which employ lo an originators, as defined in PL 110-289, Title V, the S.A.F.E. Act, shall register such employees with the Nationwide Mortgage Licensing Sy stem and Registry by COL412201718 GCA BUSINESS STRUCTURE & FUNCTION CH. 36 MORTGAGES 31 furnishing the information concerning the employees ’ identity set forth in Section 1507(a)(2) of PL 110-289, Title V. § 36322. Unique Identifier Shown. The unique identifier of any person originating a r esidential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including b usiness cards or websites, and any other documents as established by rule, reg ulation or order of the Commissioner. § 36323. Effective Date. The effective date of this Act shall be July 31, 20 10. § 36324. Severability. If any provision of this Act or its application to an y person or circumstance is held invalid, the remainder of the Act or the application of the

Act shall be July 31, 20 10. § 36324. Severability. If any provision of this Act or its application to an y person or circumstance is held invalid, the remainder of the Act or the application of the provision to other persons or circumstances is not affected. -------- COL4122017