---
kind: "section"
citation: "12 C.F.R. § 1008.113"
title: "12"
number: "1008.113"
heading: "Performance standards."
url: "https://uscodex.org/cfr/12/1008.113"
---

# §1008.113. Performance standards.

- (a) For the Bureau to determine that a state is providing effective supervision and enforcement, a supervisory authority must meet the following performance standards:
  - (1) The supervisory authority must participate in the NMLSR;
  - (2) The supervisory authority must approve or deny loan originator license applications and must renew or refuse to renew existing loan originator licenses for violations of state or Federal law;
  - (3) The supervisory authority must discipline loan originator licensees with appropriate enforcement actions, such as license suspensions or revocations, cease-and-desist orders, civil money penalties, and consumer refunds for violations of state or Federal law;
  - (4) The supervisory authority must examine or investigate loan originator licensees in a systematic manner based on identified risk factors or on a periodic schedule.
- (b) A supervisory authority that is accredited under the Conference of State Bank Supervisors-American Association of Residential Mortgage Regulators Mortgage Accreditation Program will be presumed by the Bureau to be compliant with the requirements of this section.

## Notes

### Authority

Authority: 12 U.S.C. 5101-5116; Pub. L. 111-203, 124 Stat. 1376.

### Source

Source: 76 FR 78487, Dec. 19, 2011, unless otherwise noted.