(a) If a mortgage broker is a United States Department of Housing and Urban Development
loan correspondent, such broker shall also submit to the department the audit that
is required for the United States Department of Housing and Urban Development. The department may require the mortgage broker to have made an audit of the books
and affairs of the licensed or registered business and submit to the department an
audited financial statement if the department finds that such an audit is necessary
to determine whether the mortgage broker is complying with the provisions of this
article and the rules and regulations adopted in furtherance of this article.
(b) Each mortgage lender licensed or registered under this article shall at least
once each year have made an audit of the books and affairs of the licensed or registered
business and submit to the department at renewal an audited financial statement, except
that a mortgage lender licensed or registered under this article which is a subsidiary
shall comply with this provision by annually providing a consolidated audited financial
statement of its parent company and a financial statement, which may be unaudited,
of the licensee or registrant which is prepared in accordance with generally accepted
accounting principles. A lender who utilizes a bond in lieu of an audit need not supply such audit, unless
specially required by the department. An audit shall be less than 15 months old to be acceptable. The department may by regulation establish additional minimum standards for audits
and reports under this Code section.
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