No. 26839 (New Rule): R162-207. License Renewal

DAR File No.: 26839
Filed: 12/05/2003, 10:43
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

The rules for residential mortgage licensing are being reordered into a more logical organization. The information on renewal in current Rule R162-202 is moved into a new rule numbered Rule R162-207 and has been expanded upon to provide renewal procedures. Provisions are also added to implement recent statutory changes (H.B. 277, 2003 General Session). (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 renewal process is set forth in rule, including the renewal of those registrations that are converted to licenses because of a recent statutory change (H.B. 277, 2003 General Session). The rule also provides standards for evaluating the fitness of applicants for renewal. It also provides a procedure to implement a new statutory provision, Subsection 61-2c-202(4)(a)(ii).

 

State statutory or constitutional authorization for this rule:

Subsections 61-2c-103(3), and 61-2c-202(4)(a)(ii)

 

Anticipated cost or savings to:

the state budget:

None--The procedures for renewal of residential mortgage broker licenses do not impact state agencies and therefore will have no impact on the State budget.

 

local governments:

None--Local governments are not impacted by procedures to license persons who are engaged in the residential mortgage loan business and therefore these rules will have no impact on local governments.

 

other persons:

None--Only those persons who are engaged in the residential mortgage loan business are affected by these rules. There will be an increased cost to existing licensees because they will be required to complete a licensing examination in order to keep practicing after January 1, 2005. However, those costs are due to the statutory changes made by H.B. 277 (2003 General Session) and not these rules implementing the changes.

 

Compliance costs for affected persons:

There will be an increased cost to existing licensees because they will be required to complete a licensing examination in order to keep practicing after January 1, 2005. However, those costs are due to the statutory changes made by H.B. 277 (2003 General Session) and not these rules implementing the 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.

R162-207. License Renewal.

R162-207-1. License Renewal.

207.1 Renewal period. Registrations and licenses issued under the Utah Residential Mortgage Practices Act are valid for a period of two years.

207.1.1 Notwithstanding Section 207.1, an individual license shall be inactivated by the division on January 1, 2005 if the holder of that license has not by that date submitted proof to the division of having passed the examination required by Section 61-2c-202(4)(a)(i)(C). The holder of a license that has been inactivated under this section may not engage in the business of residential mortgage loans for which licensure under this chapter is required until the individual has provided to the division any forms required by the division to activate the license, along with proof of having passed the examination required by Section 61-2c-202(4)(a)(i)(C).

207.2 Renewal of converted licenses. If an individual whose existing registration was converted by the division to a license pursuant to R162-202.6 applies to renew after January 1, 2004, but before January 1, 2005, the division shall renew the license without requiring proof that the individual has passed the examination required by Section 61-2c-202(4)(a)(i)(C). The renewed license issued under the authority of this section shall be issued subject to Section 61-2c-202(4)(a)(ii).

207.3 Renewal process.

207.3.1 All applications for renewal must be made in the form required by the division and shall include the following:

207.3.1.1 A licensure statement in the form required by the division;

207.3.1.2 The renewal fee;

207.3.1.3 If the applicant in an individual, proof using forms approved by the division of having completed during the two years prior to application the continuing education required by the commission under Section 61-2c-104;

207.3.1.4 The current home street address and home telephone number of any individual applicant or control person of an entity applicant;

207.3.1.5 A current mailing address for the applicant;

207.3.1.6 Answers to a "Licensing Questionnaire" supplying information about events that occurred in the preceding two years related to mortgage licensure in other jurisdictions, license sanctions or surrenders, pending disciplinary actions, pending investigations, criminal convictions or pleas, and/or civil judgments or findings based on fraud, misrepresentation, or deceit;

207.3.1.7 If, at the time of application for renewal, an individual applicant or a control person of an entity applicant is charged with, or since the last renewal has been convicted of or entered a plea to, any felony or misdemeanor, the following information must be provided on each conviction, plea, or charge: the charging document, the case docket, and the judgment and sentencing document, if applicable;

207.3.1.8 If, in the two years preceding application for renewal, an individual or entity applicant or a control person of an entity applicant has had a license or registration suspended, revoked, surrendered, canceled or denied based on misconduct in a professional capacity that relates to good moral character or the competency to transact the business of residential mortgage loans, the applicant must provide the documents stating the sanction taken against the license or registration and the reasons therefore; and

207.4 An entity submitting an application for renewal must at the time of application have a name registration with the Utah Division of Corporations that is current and in good standing. The division will not process an application for renewal unless it can verify that the applicant's name registration is current and in good standing.

207.5 Incomplete Application. If an applicant makes a good faith attempt to submit a completed application for renewal prior to the expiration date of the applicant's current registration or license, but the application is incomplete, the Division may grant an extension for a period not to exceed 30 days to enable the applicant to provide the missing documents or information necessary to complete the application.

207.6 All fees required in conjunction with an application for renewal are nonrefundable and will not be refunded if the applicant fails to complete an application or if a completed application is denied for failure to meet the renewal criteria.

207.7 Determining Fitness for Renewal. The commission and the division shall determine fitness for renewal in accordance with Section 202.5 above.

 

KEY: residential mortgage loan origination

2004

61-2c-103(3)

61-2c-202(4)(a)(ii)