No. 27396 (Amendment): R162-203. Changes to Residential Mortgage Licensure Statement

DAR File No.: 27396
Filed: 09/02/2004, 11:18
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed amendment is necessary for the Division to enact rules outlining the procedures for name and address changes and other status changes, for transferring mortgage licenses from one company to another, and for activating and inactivating mortgage licenses.

 

Summary of the rule or change:

Provisions are provided for notification to the Division of change in legal entity, change of control person, change of name, and change of address. Procedures for inactivation and activation of license are also specified.

 

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)

 

Anticipated cost or savings to:

the state budget:

None--The procedures for notifying the Division of various status changes by mortgage licensees do not impact the State budget.

 

local governments:

None--Local governments are not affected by the procedures that mortgage licensees must follow to notify the Division of various status changes.

 

other persons:

None--The only other persons who are affected by the procedures that mortgage licensees must follow to notify the Division about various status changes are the mortgage licensees themselves. Specifying the procedures to be followed to make status changes with the Division will neither cost nor save mortgage licensees, with the exception that they will have to pay a $15 activation fee to cover the cost to the Division of processing the license activation paperwork.

 

Compliance costs for affected persons:

Specifying the procedures to be followed to make status changes with the Division will not cost mortgage licensees, with the exception that they will have to pay an activation fee of $15 to cover the cost to the Division of processing the license activation paperwork.

 

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

This rule filing establishes standards for Division notification when a licensee's information and circumstances change. These standards appear to create no fiscal impact to businesses.

 

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.

R162-203. Changes to Residential Mortgage Licensure Statement.

R162-203-1. Status Changes[ to Residential Mortgage Licensure Statement].

203.1. A licensee shall notify the Division within ten working days of any status change. Status changes are effective on the date the properly executed forms and non-refundable fees are received by the Division. Notice must be on the forms required by the Division.

203.1.1 Change in Entity. If a change in a licensed entity results in the creation of a new legal entity, the new entity may not operate under the license issued to the previous entity. If the change of partners in a partnership, either by the addition or withdrawal of partners, creates a new legal entity, the new entity may not operate under the license issued by the Division to the previous partnership. The dissolution of a corporation, partnership, limited liability company, association, or other entity that holds a license issued by the Division terminates that license.

203.1.1.1 Notification of Change in Entity. The control person of a licensed entity shall provide written notification to the Division of any change in the entity that will create a new legal entity or that will cause the dissolution of the entity prior to the effective date of the change.

203.1.2. Change of name requires submission of official documentations such as a marriage certificate, divorce decree, or driver's license.

203.1.3. Change of business, home address or mailing address requires written notification. A post office box without a street address is unacceptable as a business or home address. The licensee may designate any address to be used as a mailing address.

203.1.4. Change of name of a licensed entity shall be accompanied by evidence that the new name has been approved by the Division of Corporations and Commercial Code, Department of Commerce.

203.1.5. Change of control person of a licensed entity requires notice from the entity in the form required by the Division, signed by both the terminating control person and the new control person, and the applicable change fee.

 

R162-203-2. Entity Affiliation.

An individual licensed under the Utah Residential Mortgage Practices Act [must ]shall notify the Division on the form required by the Division of [any ]the entity for which that individual shall conduct residential mortgage lending before acting on behalf of that entity.

203.2.1. Transfers. Prior to transferring from one entity to another, or from one branch office to another, the licensee must mail, deliver, or electronically transmit to the Division written notice of the transfer on the form required by the Division.

 

R162-203-3. Unavailability of Licensee.

203.3.1 Mortgage Officers. If a mortgage officer is not available to properly execute the form required to terminate the license affiliation of the mortgage officer with a licensed entity, the control person of the entity may still terminate the mortgage officer's license affiliation with the entity, provided a letter advising the mortgage officer of the termination is mailed by the control person of the entity by certified mail to the last known address of the mortgage officer. A verified copy of the letter and proof of mailing by certified mail shall be attached to form required to terminate the mortgage officer's license affiliation with the entity when the form is submitted to the Division.

203.3.2 Control Person. If control person who will no longer be the control person designated by the entity is not available to properly execute the form that is required by the Division to substitute one control person for the other, the change in control person may still be made by the entity, provided a letter advising of the change is signed by a person who is legally authorized to make staffing decisions on behalf of the entity and mailed by certified mail to the last known address of the unavailable person. A verified copy of the letter and proof of mailing by certified mail shall be attached to the form required by the Division to substitute one control person for another when the form is submitted to the Division.

 

R162-203-4. Inactivation.

203.4 To voluntarily inactivate a license, the licensee shall deliver, mail, or electronically transmit to the Division a written request for license inactivation on the form required by the Division, which form shall have been signed by both the licensee and the licensee's control person.

203.4.1 The control person of the entity with which a mortgage officer is licensed may terminate the mortgage officer's license affiliation with the entity without the mortgage officer's consent, known as an "involuntarily inactivation" of the mortgage officer's license by complying with R162-203.3.1.

 

R162-203-5. Activation.

203.5 All licensees changing to active status must submit to the Division the applicable non-refundable activation fee and a written request for activation on the form required by the Division.

 

KEY: residential mortgage loan origination

[April 12, ]2004

61-2c-205(3)