Legislative Findings and Intent

I Liheslaturan Guåhan finds that the activities of mortgage loan originators and the origination or offering of financing for residential real property have a direct, valuable and immediate impact upon Guam’s consumers, Guam’s economy, the neighborhoods and communities of Guam, and the housing and real estate industry. I Liheslaturan Guåhan finds that accessibility to mortgage credit is vital 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 economy that reasonable standards for licensing and regulation of the business practices of mortgage loan originators be imposed. I Liheslatura further finds that the obligations of mortgage loan originators to consumers in connection with originating or making residential mortgage loans are such as to warrant the regulation of the mortgage lending process. The purpose of this Act is to protect consumers seeking mortgage loans and to ensure that the mortgage lending industry 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. An effective system of supervision and enforcement of the mortgage lending industry, including:

(1)The authority to issue licenses to conduct business under this Act, including the authority to write rules or regulations or adopt procedures necessary to the licensing of persons covered under this Act.

(2)The authority to deny, suspend, condition or revoke licenses issued under this Act.

(3)The authority to examine, investigate and conduct enforcement actions as necessary to carry out the intended purposes of this Act, including the authority to subpoena witnesses COL4122017 CH. 36 MORTGAGES and documents, enter orders, including cease and desist orders, order restitution and monetary penalties and order the removal and ban of individuals from office or employment.

(b)Broad Administrative Authority. That the Commissioner shall have the broad administrative authority to administer, interpret and enforce this Act, and promulgate rules or regulations implementing this Act, in order to carry out the intentions of I Liheslatura.