No. 33096 (New Rule): Rule R343-4. Application Forms and Procedures for Mortgage Lenders

(New Rule)

DAR File No.: 33096
Filed: 10/26/2009 11:28:03 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

With the passage of H.B. 286, during the 2009 General Session of the Utah Legislature, the department shall by rule establish the form, content, and procedure for filing applications for licensure. (DAR NOTE: H.B. 286 (2009) is found at Chapter 72, Laws of Utah 2009, and was effective 05/12/2009.)

Summary of the rule or change:

This rule prescribes license application form specifications, contents, and procedures for submitting the application.

State statutory or constitutional authorization for this rule:

• Section 70D-3-203

Anticipated cost or savings to:

the state budget:

The proposed new rule will not require additional appropriations.

local governments:

Local governments are not involved in regulating mortgage loan originators and are therefore not subject to this rule.

small businesses:

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ("SAFE Act"), was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the Nationwide Mortgage Licensing System and Registry (NMLS). As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

persons other than small businesses, businesses, or local governmental entities:

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The SAFE Act was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the NMLS. As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

Compliance costs for affected persons:

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The SAFE Act was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the NMLS. As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

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

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The SAFE Act was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the NMLS. As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

Edward Leary, Commissioner

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

Financial Institutions
Nondepository Lenders
324 S STATE ST
SALT LAKE CITY, UT 84111-2393

Direct questions regarding this rule to:

• Paul Allred at the above address, by phone at 801-538-8854, by FAX at 801-538-8894, 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:

12/15/2009

This rule may become effective on:

12/22/2009

Authorized by:

Edward Leary, Commissioner

RULE TEXT

R343. Financial Institutions, Nondepository Lenders.

R343-4. Application Forms and Procedures for Mortgage Lenders.

R343-4-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 70D-3-203.

(2) This rule applies to mortgage lenders who engage in the business of mortgage lending and are required to license with the commissioner.

(3) This rule prescribes license application form specifications, contents and procedures for submitting the application.

 

R343-4-2. Mortgage Loan Originator License Application.

(1) Applicants for an initial or renewal license shall complete forms and follow procedures prescribed by the nationwide database.

 

KEY: mortgage

Date of Enactment or Last Substantive Amendment: 2009

Authorizing, and Implemented or Interpreted Law: 70D-3-203

 

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