Consumer Credit Division

October 13, 2004

Dear Licensee:

As you know, the Consumer Credit Division of this department is currently processing applications for the renewal of first and secondary mortgage licenses and originator registrations. The statutes were amended on October 1, 2002 to allow for mortgage license renewals every two years on the even years. Additionally, the statutes were amended to require the registration of originators and these registrations have to be renewed at the same time as the mortgage licenses. Consequently, the Division is now faced with the challenge of renewing approximately 4,000 mortgage licenses and 18,000 originator registrations.

The Division has added permanent staff and assembled a team of temporary workers to accomplish this task. We have also enhanced our software system and continue to develop technology solutions so that future renewals will be streamlined and processed more efficiently.

Section 36a-491(a)(1) of the Connecticut General Statutes, which governs license and registration fees for first mortgage lender, correspondent lender and first mortgage broker license applicants, provides that "[e]ach license issued pursuant to this section shall expire at the close of business on September thirtieth of the even-numbered year following its issuance unless such license is renewed". Section 36a-514(a)(1) of the Connecticut General Statutes provides the same for secondary mortgage lender, correspondent lender and secondary mortgage broker license applicants. It appears from the plain language of these statutes that unless one of the specified licenses is renewed, it will expire on September 30 of this year. However, Section 4-182(b) of the Uniform Administrative Procedure Act, which governs matters involving licenses, states that "[w]hen a licensee has made timely and sufficient application for the renewal of a license…the existing license shall not expire until the application has been finally determined by the agency…". Therefore, in the case of a licensee that timely and sufficiently applies for a renewal license, there is no need to formally "extend" its license since such license does not expire until the Department has completed its application processing procedure.

As it relates to mortgage originator registration renewals, Sections 36a-491(a)(2) and 36a-514(b) provide that "[e]ach registration shall expire at such time as the licensee's license expires unless such registration is renewed". Therefore, if the license of the licensee that files an application for registration of an originator is, in effect, extended, by virtue of Section 4-182(b), the registration of the originator is similarly extended, as long as the licensee made "timely and sufficient application" for the renewal of the originator's registration.

This letter will serve as notification that the Department considers that you have "made timely and sufficient application for renewal" of your license and, as such, your current license remains in force. Our web site (www.ct.gov/dob) will be updated to reflect the names of all licensees who are in this situation. Moreover, it is our expectation that investors and lenders will honor your existing license during the renewal process.

We will commence mailing new licenses as early as next week and it is our expectation that all licenses will be renewed by the end of March, 2005. We truly appreciate your patience and understanding during this period. If you have any questions regarding the above please contact Carmen Calderon at (860) 240-8225.

Consumer Credit Division