No. 27395 (Amendment): R162-201. Residential Mortgage Definitions

DAR File No.: 27395
Filed: 09/02/2004, 09:57
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed amendment is necessary to define "certification" in the context of the Division's responsibility to certify providers of education for mortgage licensees.

 

Summary of the rule or change:

A definition of "certification" is added.

 

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)

 

Anticipated cost or savings to:

the state budget:

None--Providing a definition of a term used in the context of education for mortgage licensees has no impact on the State budget.

 

local governments:

None--Local government is not affected by the definition of certification in the context of education for mortgage licensees.

 

other persons:

None--Defining a term used in regulating the providers of mortgage education has no impact on other persons.

 

Compliance costs for affected persons:

None--Any costs associated with certification of education providers for mortgage licensees are attributable to the statute that requires the Division of Real Estate to certify the providers (S.B. 178, 2004 General Session). (DAR NOTE: S.B. 178 is found at UT L 2004 Ch 297, and was effective 05/03/2004.)

 

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, which defines "certification."

 

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:

11/01/2004

 

This rule may become effective on:

11/02/2004

 

Authorized by:

Dexter Bell, Director

 

 

RULE TEXT

R162. Commerce, Real Estate.

R162-201. Residential Mortgage Definitions.

R162-201-1. Residential Mortgage Definitions.

201.1 Control. As used in Section 61-2c-102(1) of the Utah Residential Mortgage Practices Act, "control" is defined as the power to directly or indirectly:

(a) direct or exercise a controlling influence over:

(i) the management or policies of an entity;

(ii) the election of a majority of the directors,

officers, managers, or managing partners of an entity;

(b) vote 20% or more of any class of voting securities of an entity by an individual; or

(c) vote more than 5% of any class of voting securities of an entity by another entity.

201.2 Certification. "Certification" means that the holder of a certificate is authorized by the Division to:

(a) establish and operate a school that provides courses for prelicensing requirements;

(b) provide courses that are approved for continuing education; or

(c) function as an instructor for courses approved for prelicensing requirements or for continuing education.

 

KEY: residential mortgage loan origination

[June 29, ]2004

61-2c-103(3)