News

State Regulators Settle with Hundreds of Mortgage Loan Originators over SAFE Act Education Requirements - North Dakota joins 41 others in multi-state enforcement action

Tuesday, January 25, 2022 at 11:00 pm

The North Dakota Department of Financial Institutions and financial regulatory agencies from 42 other states reached settlements with 441 mortgage loan originators nationwide who deceptively claimed to have completed annual continuing education as required under state and federal law.

 

North Dakota entered into settlement agreements with Chad Baker, Brian Brown, and Kevin Heckemeyer.  These agreements can be found here.

Through the settlements, the mortgage loan originators agreed to surrender their licenses for a period of three months, pay a fine of $1,000 for each state in which he or she holds a license and take continuing education beyond Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requirements.

Congress enacted the SAFE Act to enhance consumer protection and reduce fraud through minimum standards for the licensing and registration of state-licensed mortgage loan originators. The law calls on the states to implement and enforce these standards, and every state has enacted its own version of the SAFE Act that requires mortgage loan originators to have at least 20 hours of pre-licensing education and an annual eight hours of continuing education. 

Danny Yen, owner of Carlsbad, Calif.-based course provider Real Estate Educational Services, is facing administrative enforcement actions for both providing false certificates and taking courses on behalf of mortgage loan originators through other education providers in violation of the SAFE Act.

The irregular education activity was discovered through a gesture-driven authentication tool called BioSig-ID, which is used to monitor all online courses approved under the SAFE Act mandate. 

Signed Settlement - Brown    Signed Settlement - Heckemeyer   Signed Settlement - Baker


Order of Immediate Suspension of Kaitlin Kastet

Monday, November 29, 2021 at 11:00 pm

The Commissioner of the Department of Financial Institutions has issued an Order suspending Kaitlin Kastet, a former employee of First Community Credit Union, Jamestown, North Dakota, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions.  The party listed in this Order has been provided the opportunity to request a hearing pursuant to law.  A copy of the Order can be found here: Order


Order of Immediate Suspension of Amy Bradley

Monday, November 22, 2021 at 03:30 pm

The Commissioner of the Department of Financial Institutions has issued an Order suspending Amy Bradley, a past employee of the former Citizens Community Credit Union, Devils Lake, North Dakota, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions.  The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law.  A copy of the Order can be found here: Order


The State Credit Union Board and State and State Banking Board Proposed Administrate Rules

Thursday, November 18, 2021 at 11:00 pm

The State Credit Union Board and State and State Banking Board publish proposed Administrate Rules.  These can be found here: NDAC Proposed Rules  Full Notice


Order of Immediate Suspension and Removal of Kelly Huffman

Monday, November 15, 2021 at 04:00 pm

The Commissioner of the North Dakota Department of Financial Institutions has issued an Order suspending Kelly Huffman, a former employee of The Union Bank, Beulah, North Dakota, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions. A copy of the Order can be found here: Huffman Removal Order 11/9/2021


Order of Immediate Suspension and Removal of Brent Torgerson

Monday, November 15, 2021 at 04:00 pm

The Commissioner of the North Dakota Department of Financial Institutions has issued an Order suspending Brent Torgerson, a former employee of The Union Bank, Beulah, North Dakota, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions. A copy of the Order can be found here: Torgerson Removal Order 11/9/2021


Order of Immediate Suspension and Removal of Brady Torgerson

Wednesday, July 21, 2021 at 10:30 am

The North Dakota State Banking Board has issued an Order suspending Brady Torgerson, a former employee of First Security Bank – West, Beulah, North Dakota, from employment or otherwise participating in the affairs of any financial corporation, financial institution, credit union, or other entity licensed by the North Dakota Department of Financial Institutions.  The parties listed in this Order have been provided the opportunity to request a hearing pursuant to law.  A copy of the Order can be found here:  Torgerson Removal Order


Bank-Owned Life Insurance on Employees and Directors

Friday, March 26, 2021

Life insurance products can serve a number of appropriate business purposes and may be used to offset risks and costs incurred by a bank. These products exhibit characteristics that are different than other bank assets; therefore, the reasons for purchasing, your due diligence process, and ongoing monitoring of life insurance are governed by separate rules and an interagency policy statement to address oversight and risk management processes.

Bank-owned life insurance (BOLI) is addressed by North Dakota Administrative Code (NDAC) § 13-02-14, which was last amended April 1, 2003. Although this statute pre-dates the Interagency Statement on the Purchase and Risk Management of Life Insurance 2004-56, the Department’s rules are consistent with this statement.

A question the Department occasionally receives is whether a bank can continue to hold life insurance on an employee or director after that person is no longer with the bank. That depends on the purpose, whether the policy is for a key person or in connection with compensation and benefit plans. <more>  


Consent Order and Civil Money Penalties Issued Against Nationstar Mortgage LLC.

Monday, December 7, 2020 at 11:00 pm

On December 7, 2020, the Commissioner of the North Dakota Department of Financial Institutions joined other state and federal agencies in issuing a settlement agreement and consent order against Nationstar Mortgage LLC, d/b/a Mr. Cooper.  As part of the consent order, Nationstar will pay consumers nearly $90 million to resolve past actions, and will also pay in excess of $6.5 million in civil money penalties.  A summary of this consent order can be found here.  The settlement agreement and consent order can be found here.


Notice of a Persons Fraudulently Posing as North Dakota Financial Institution

Wednesday, September 23, 2020

We have been made aware of a fraudulent person(s) posing to be from a North Dakota financial institution.  The individual(s) place phone calls to the public and claim to be from a legitimate financial institution.  Their goal is to obtain personal financial information from the persons called.  These calls are fraudulent, likely part of an identity theft scheme.  As a reminder, you should never give out personal financial information over the phone or online unless you are confident that you are dealing with a reputable party.  A reputable bank, credit union, or non-depository financial institution will never contact you and request this type of information.