230 R.I. Code R. 230-RICR-40-10-2.8

Current through December 26, 2024

Section 230-RICR-40-10-2.8 - Criminal Backgrounds

A. Pursuant to R.I. Gen. Laws § 19-14.10-6 and the SAFE Act (the Secure and Fair Enforcement for Mortgage Licensing Act, comprising §§1501-1517 of the Housing and Economic Recovery Act of 2008, Pub. Law 110-289), an applicant is not eligible for licensure if he or she has been convicted of, or pled guilty or nolo contendere 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 breach of trust, or money laundering.

B. For all other arrests and convictions which appear on an applicant's criminal background the applicant should provide a full explanation and all supporting documentation (including the charging documents and the documents evidencing the terms of a plea agreement or conviction after trial).

C. Aggravating factors which may be considered in the denial of the application for license or renewal include, but are not limited to:

1. Prior disciplinary history;

2. Number of violations;

3. Pattern of similar violations;

4. Significant harm to victim or community;

5. Refusal, delay, or inadequate explanation of facts and circumstances at issue;

6. Evidence of willfulness or intentional commission of offense;

7. Evidence of gross negligence;

8. Refusal to acknowledge violation or take responsibility for offense;

9. Lack of cooperation with investigation;

10. Submission of false statements or evidence, or other deceptive practices;

11. Intimidation of or threats to witnesses or others involved with the investigation.

D. Mitigating factors which may be considered in the denial of the application for license or renewal include, but are not limited to:

1. Length of time since the date of violation;

2. No prior disciplinary history;

3. No other complaints, arrests, charges, or offenses currently pending against licensee/Applicant;

4. No pattern of similar offenses;

5. No evidence that the arrest, charge, offense, or conviction was willful or intentional;

6. No evidence that the arrest, charge, offense, or conviction was grossly negligent;

7. Age, position, and/or license at time of arrest, charge, offense, or conviction;

8. Evidence of rehabilitation since arrest, charge, offense, or conviction;

a. Cooperation with investigation;

b. Little or no harm to public;

c. Timely mitigation or restitution;

d. Understanding, acknowledgment, and remorse for arrest, charge, offense, or conviction;

e. Reasonable explanation that is not contradicted by other witnesses or evidence;

f. Personal problems at time of arrest, charge, offense, or conviction that have been addressed;

g. Arrest, charge, offense, or conviction are not related to position or license sought.

E. Pardon or expungement of a conviction shall not be a conviction for purposes of this Part.

F. Upon review and evaluation of all information, the Department may deny the application for license or renewal application, grant the application for license or renewal application without conditions, or grant the application for license or renewal application with conditions.

G. If the Division denies an application on the basis of the Applicant or an Officer, Director, Owner, Manager or Control Persons' criminal background, the Applicant will be notified of the reason for the denial. The Applicant may make written demand upon the department within thirty (30) days for a hearing to determine the reasonableness of the action. The hearing shall be conducted in accordance with the Administrative Procedures Act, R.I. Gen. Laws § 42-35-9.

230 R.I. Code R. 230-RICR-40-10-2.8

Adopted effective 1/1/2019
Amended effective 6/27/2022