No. 26836 (New Rule): R162-208. Continuing Education

DAR File No.: 26836
Filed: 12/05/2003, 10:00
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

A recent change to the statute (H.B. 277, 2003 General Session) requires continuing education for those engaged in the business of residential mortgage loans, and authorizes the Utah Residential Mortgage Loan Regulatory Commission to establish the appropriate number of hours and appropriate subject matter for that continuing education. (DAR Note: H.B. 277 is found at UT L 2003 Ch 243, and is effective January 1, 2004.)

 

Summary of the rule or change:

The rule establishes the number of continuing education hours that are required to renew licenses and defines the subject matter that is acceptable. It also establishes an Education Committee to assist the Commission in approving continuing education topics. Finally, it provides the conditions under which on-line courses will be acceptable for continuing education.

 

State statutory or constitutional authorization for this rule:

Subsections 61-2c-103(3), and 61-2c-104(7)(d)(ii)

 

Anticipated cost or savings to:

the state budget:

None--It will be more costly for the Division of Real Estate to process license renewals because it will have to check for proof of completion of the appropriate number of continuing education hours, but those costs are due to the statutory change requiring continuing education and not to these rules. The continuing education requirements for residential mortgage lenders do not impact any other state agencies and therefore will have no impact on the State budget.

 

local governments:

None--Local government is not affected by the continuing education requirements for residential mortgage lenders and therefore these rules will have no impact on local governments.

 

other persons:

None--Only those persons who are engaged in the business of residential mortgage loans are affected by these rules. There will be an increased cost to mortgage licensees because they will be required to complete a continuing education requirement at their own expense in order to renew. However, those costs are due to the statutory changes made by H.B. 277 (2003 General Session) and not caused by these rules implementing those changes.

 

Compliance costs for affected persons:

There will be an increased cost to mortgage licensees because they will be required to complete a continuing education requirement at their own expense in order to renew. However, those costs are due to the statutory change made by H.B. 277 (2003 General Session) and not caused by these rules implementing those changes.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

There appears to be no fiscal impact to businesses as a result of this rule filing that was not already anticipated in recent legislative amendments to the Utah Residential Mortgage Practices Act (H.B. 277, 2003 General Session).

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

 

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/02/2004

 

This rule may become effective on:

02/03/2004

 

Authorized by:

Dexter Bell, Director

 

 

RULE TEXT

R162. Commerce, Real Estate.

R162-208. Continuing Education.

R162-208-1. Continuing Education.

208.1 Required Hours of Continuing Education. As authorized by Section 61-2c-104(7)(d)(ii)(A), the Utah Residential Mortgage Regulatory Commission has set the number of hours of continuing education required for renewal as follows:

208.1.1 Individuals with renewal dates on or before December 31, 2005 - zero credit hours.

208.1.2 Individuals with renewal dates after December 31, 2005 - fourteen credit hours.

208.2 Proof of continuing education hours. Proof of continuing education hours must be in the form required by the division.

208.3 Credit Hours. For the purpose of this rule, a credit hour is defined as 50 minutes of education within a 60 minute time period. A 10 minute break may be taken for every 50 minutes of education. Education credit will be limited to a maximum of 8 credit hours per day.

208.4 Subject Matter. The following subject matter is acceptable for continuing education credit:

208.4.1 Each time the licensee renews, the required 14 credit hours must include a minimum of 2 credit hours of ethics and a minimum of 3 credit hours related to compliance with Federal and State laws governing mortgage lending.

208.4.2 The balance of the credit hours required for renewal may consist of any courses related to residential mortgage principles and practices that, in the opinion of the commission, would enhance the competency and professionalism of licensees.

208.4.3 The division will maintain and will make available to any person upon request a list of course topics that have been approved by the commission as acceptable for continuing education purposes. The division shall also post the list of course topics on its website.

208.5 Unacceptable Subject Matter. The following topics are not acceptable for continuing education purposes:

208.5.1 Offerings in mechanical office and business skills such as typing, speed reading, memory improvement, report writing, advertising or similar offerings;

208.5.2 Offerings concerning physical well-being or personal development, such as personal motivation, stress management, time management, dress-for-success, or similar

offerings; and

208.5.3 Meetings held in conjunction with the general business of the licensee and the entity for which the licensee conducts residential mortgage business, such as sales meetings, or in-house staff meetings unless the in-house staff meetings consist of training on the subjects set forth in Section 61-2c-104(7)(d)(i).

208.6 Education Committee. The commission will appoint an Education Committee, the purpose of which will be to assist the commission in approving continuing education course topics. The Education Committee will make recommendations to the commission about whether any particular course topic is sufficiently related to residential mortgage principles and practices, and whether the topic would tend to enhance the competency and professionalism of licensees, to justify placing the topic on the list of course topics that are acceptable for continuing education purposes. The commission may accept or reject the Committee's recommendation on any course topic.

208.6.1 Any licensee or any course provider may request that the Education Committee recommend to the commission that a specific topic be approved as an acceptable topic for continuing education purposes. The request must be made in writing, addressed to the Education Committee in care of the division, and must state specific reasons why the requester believes the topic qualifies for continuing education purposes.

208.6.2 If the Education Committee turns down a request to approve a certain topic for continuing education purposes, the party who requested that the topic be approved may petition the commission on an individual basis for evaluation and approval of the topic as being acceptable for continuing education purposes. The Petition must be made in writing, addressed to the commission in care of the division, and must state specific reasons why the requester believes that the topic qualifies for continuing education purposes. If the commission finds that the topic is acceptable for continuing education purposes, the commission shall direct the division to add the topic to the list maintained by the division of approved continuing education topics.

208.7 The course provider shall issue a course completion certificate in the form required by the division to all licensees who successfully complete a course in a topic that is approved for continuing education purposes. The course completion certificate shall indicate the number of credit hours successfully completed by the student and must be signed by the instructor who taught the course.

208.8 On-line courses. On line-courses may be accepted by the division for continuing education purposes if they comply with all of the other provisions of this rule and if: a) the student who successfully completes a course is able to print from the course provider's web site a continuing education certificate to submit to the division that meets the requirements of Section 208.7 above; and b) the course provider has methods in place to determine whether a student has successfully completed a course and to insure that only those students who have successfully completed a course are able to print a course completion certificate.

 

KEY: residential mortgage loan origination

2004

61-2c-103(3)

61-2c-104(7)(d)(ii)