No. 29520 (Amendment): R162-208. Continuing Education

DAR File No.: 29520
Filed: 02/15/2007, 01:33
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The providers of continuing education courses maintain that it is very difficult to submit an application for approval of a course 60 days in advance of the date that a course will be offered because sometimes the course outline has not yet been finalized that far in advance of the course offering. The Division of Real Estate has determined that it does not need 60 days to process applications for certification of continuing education courses and instructors, and that 30 days would be sufficient, and is willing to change the deadline to accommodate the interests of the course providers. Outdated language that is no longer needed is deleted, as is language specifying fee amounts since fee amounts are set in the Division's fee schedule and tend to change over time. Lists of information on application forms are also deleted since the information required also tends to change over time. Provisions that are duplications are also deleted, as are unnecessary provisions regarding a list of approved course topics.

Summary of the rule or change:

"At least 60 days" is replaced by "at least 30 days" in Subsections R162-208-9(208.9) and R162-208-10(208.10). Outdated language is deleted from Subsection R162-208-1(208.1). Fee amounts are deleted from Subsection R162-208-10(208.10.4). Subsection R162-208-4(208.4.3) is changed so that the language is permissive instead of mandatory. Instructors are given six months instead of three months to reinstate their expired instructor certifications. Finally, Section R162-208-14 is deleted because it is largely a duplication of Subsection R162-208-10(208.10.5).

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--The Division of Real Estate has determined that it will be able to evaluate and act on applications for continuing education certification within 30 days without hiring additional staff. Therefore, no cost to the state budget is anticipated. Because only the turn-around time is being changed, not the process that the Division goes through to evaluate applications, no savings are anticipated either. There are no costs or savings anticipated from the other housekeeping changes to this rule.

local governments:

None--Local governments do not act as providers of continuing education for mortgage loan officers and do not apply to the Division of Real Estate for certification of mortgage continuing education courses or instructors. Therefore, the rules related to certification of mortgage continuing education neither costs nor saves local governments any money. There are no costs or savings anticipated from the other proposed changes to this rule that are basically housekeeping changes.

other persons:

The only other persons who are impacted by the turn-around time for certification of mortgage continuing education courses and instructors are the providers of the education courses. Changing the deadline for applying for certification by allowing the providers to submit applications closer to the time the course will be given should not cost the providers any money. It is possible that the liberalization of the deadline may save the course providers money somehow, but the Division cannot anticipate whether there would be any savings or estimate how much that savings might be. No costs or savings to other persons are anticipated as a result of the housekeeping changes to this rule.

Compliance costs for affected persons:

Changing the deadline for applying for certification of continuing education courses and instructors by allowing course providers to submit applications closer to the time the course will be given should not cost the providers any money. No compliance costs are anticipated due to the additional housekeeping changes to this rule.

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

No fiscal impact to businesses is anticipated by this rule filing, which removes unnecessary provisions, provides continuing education course providers more flexibility in submitting their course certification applications to the Division for approval, and makes other technical amendments. Francine A. Giani, Executive Director

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 801-366-0145, by FAX at 801-366-0315, 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:

04/02/2007

This rule may become effective on:

04/10/2007

Authorized by:

Derek Miller, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-208. Continuing Education.

R162-208-1. Required Hours of Continuing Education.

208.1 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 -]at fourteen credit hours.

 

R162-208-4. Subject Matter.

208.4 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]may maintain and [will]may make available to any person upon request a list of course topics that have been approved by the Division and the Commission as acceptable for continuing education purposes. The Division [shall]may also post the list of course topics on its website.

 

R162-208-6. Education Committee.

208.6 The Commission [will]may appoint an Education Committee, the purpose of which will be to assist the Division and the Commission in approving continuing education course topics. The Education Committee will make recommendations to the Division and 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 Division and the Commission may accept or reject the Committee's recommendation on any course topic.

208.6.1 If an Education Committee has been appointed by the Commission, a[A]ny licensee or any course provider may request that the Education Committee recommend to the Division and 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 Division and 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 Division and 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 Division and the Commission find that the topic is acceptable for continuing education purposes, the Division shall add the topic to the list maintained by the Division of approved continuing education topics.

 

R162-208-9. Continuing Education Instructor Certification.

208.9 All instructors of courses to be taught for continuing education purposes must apply for certification from the Division not less than [60]30 days prior to the anticipated date of the first class that they intend to teach.

208.9.1 Continuing education course instructor applicants shall meet the requirements set forth in Section 210.5 and Section 210.7 of these rules, and shall demonstrate knowledge of the subject matter of the course they intend to teach by submitting proof of the following:

(a) at least three years of experience in a profession, trade, or technical occupation in a field directly related to the course which the applicant intends to instruct; or

(b) a bachelors or postgraduate degree in the field of real estate, business, law, finance, or other academic area directly related to the course which applicant intends to instruct; or

(c) any combination of at least three years of full-time experience and college-level education in a field directly related to the course which the applicant intends to instruct.

208.9.2 Instructor applicants shall demonstrate evidence of the ability to communicate the subject matter by the submission of proof of the following:

(a) a state teaching certificate or showing successful completion of appropriate college courses in the field of education; or

(b) a professional teaching designation from the National Association of Mortgage Brokers, the Real Estate Educators Association, the Mortgage Bankers Association of America, or a similar association; or

(c) evidence, such as instructor evaluation forms or letters of reference, of the ability to teach in schools, seminars, or in an equivalent setting.

208.9.3 Upon approval by the Division, an instructor shall be issued a certification to act as a continuing education instructor. A continuing education instructor certification shall expire twenty-four months after its issuance. An instructor shall apply for renewal of a continuing education instructor certification prior to the expiration of the instructor's current certification, using the form required by the Division.

208.9.3.1 To qualify for renewal of instructor certification, an instructor must provide proof of having taught a minimum of one class in each course for which renewal is sought in the year preceding application for renewal. The term of a renewed instructor certification shall be twenty-four months.

208.9.3.1.1 If the instructor has not taught during the year preceding renewal and wishes to renew certification, written explanation shall be submitted outlining the reason for not instructing the course, including documentation satisfactory to the Division as to the instructor's present level of expertise in the subject matter of the course.

208.9.4 Reinstatement of Expired Instructor Certification. If the instructor does not submit a properly completed renewal form, the renewal fee, and any required documentation prior to the expiration date of the instructor's current certification, the certification shall expire. When an instructor certification expires, the certification may be reinstated for a period of thirty days after the expiration date upon payment of a non-refundable late fee in addition to completing all of the requirements for a timely renewal. After the thirty day period, and until [three]six months after the expiration date, an instructor certification may be reinstated upon payment of a non-refundable late fee and completion of 6 classroom hours of education related to residential mortgages or teaching techniques in addition to completing all of the requirements for a timely renewal. After the [three]six month period, an instructor will be required to apply by following the procedure for obtaining original certification.

 

R162-208-10. Continuing Education Course Certification.

208.10 Continuing education course providers who provide education courses specifically tailored for, or marketed to, Utah real estate, appraiser, or mortgage licensees are required to apply to the Division for certification of any course for which continuing education credit is promised at least [60]30 days prior to the anticipated date of the first class. Except as may be provided in Subsection 208.10.5, the Division will not grant continuing education credit to students who have taken courses that have not been certified by the Division in advance of the courses being taught to students.

208.10.1 Approved continuing education providers may include accredited colleges and universities, public or private vocational schools, national and state mortgage related professional societies and organizations, and proprietary schools and instructors.

208.10.2 Application Procedure. Except as provided in Subsection 208.10.3, education providers shall make application to the Division following the procedures set forth in Subsection 208.10.4.

208.10.3. A continuing education provider who provides proof to the Division that a course offering has been certified for continuing education credit in a minimum of three other states and that the provider has specific standards in place for development of courses and approval of instructors may be granted certification of a course by filling out the form required by the Division and including the following with the application:

(a) a copy of the provider's standards used for developing curricula and for approving instructors;

(b) evidence that the course is certified in at least three states;

(c) a sample of the course completion certificate bearing all information required by Subsection 208.10.4(l) and

(d) all required fees, which shall be non-refundable.

208.10.4 Submission of Course for Certification. The application shall include the non-refundable instructor certification fee [of $50.00 ]and the non-refundable [$70.00 ]course certification fee per course per instructor. The application shall be made on the form [approved]required by the Division, and shall include all information required by the Division concerning the course and the course sponsor.[ which shall include the following information:

(a) Name, phone number and address of the sponsor of the course, including the owners and the coordinator or director responsible for the offering;

(b) The title of the course offering including a description of the type of training; for example, seminar, conference, correspondence course, or similar offering;

(c) A copy of the course curriculum including a course outline of the comprehensive subject matter. Except for courses approved for specific distance education delivery, the course outline shall include the length of time to be spent on each subject area broken into segments of no more than 30 minutes each, the instructor for each segment, and the teaching technique used in each segment;

(d) A complete description of all materials to be distributed to the participants;

(e) The date, time and locations of each course;

(f) The procedure for pre-registration, the tuition or registration fee and a copy of the cancellation and refund policy;

(g) Except for courses approved for specific distance education delivery, the procedure for taking and maintaining control of attendance during class time, which procedure shall be more extensive than having the student sign a class roll;

(h) An instructor application on a form approved by the Division including the information as defined in R162-9.4;

(i) A signed statement agreeing to allow the course to be randomly audited on an unannounced basis by the Division or its representative;

(j) A statement defining how the course will meet the objectives of continuing education by providing education of a current nature and how it will improve a licensee's ability to provide greater protection of, and service to, the public;

(k) A signed statement agreeing not to perform marketing for a specific company or professional service, or to market personal sales products;

(l) A sample of the completion certificate, or the completion certificate required by the Division, if any, that will be issued which shall bear the following information:

(i) Space for the licensee's name, type of license and license number, date of course;

(ii) The name of the course provider, course title, hours of credit, certification number, and certification expiration date;

(iii) Space for the signature of the course sponsor and a space for the licensee's signature; and

(m) Signature of the course coordinator or director.]

208.10.5 Individual licensees may apply to the Division for continuing education credit for a non-certified mortgage course that was not required by these rules to be certified in advance by

[filling out]submitting the form required by the Division and providing all information concerning the course required by the Division. If the licensee is able to demonstrate to the satisfaction of the Division that the course will likely improve the licensee's ability to better protect or serve the public and improve the licensee's professional licensing status, the Division may grant the individual licensee continuing education for the course.

208.10.5.1 Provided the subject matter of the course is applicable to residential mortgage loan business in Utah, a course approved for continuing education purposes in another state or jurisdiction may be granted Utah continuing education credit on a case by case basis.

208.10.6 Distance Education. Continuing education courses in which the instruction does not take place in a traditional classroom setting, but rather through other media where teacher and student are separated by distance and sometimes by time, may be certified by the Division if the particular distance education method has been approved by the Commission and the Division. Application must be made to the Division on the form required by the Division for certification of courses that do not take place in a traditional classroom setting.

 

R162-208-11. Conditions of Certification.

[208.11.1 Course Completion Certificates. Upon completion of the educational program the course provider shall furnish to each student a certificate of completion in the form required by the Division.

]208.11.1[.1] Minimum class time for live courses. Course completion certificates may be given only to those students who have attended a minimum of 90% of the required class time of a live lecture course.[ Within 10 days of the end of the course, the course provider shall furnish to the Division a roster of students and their license numbers for whom certificates were issued.]

208.11.2 Registration Records. A course provider shall maintain for three years a record of registration of each individual completing a course and any other information required by the Division regarding the individual's attendance at the course, including exam results, if any.

208.11.3 Course providers shall require that a student registered for a distance education course completes the course within one year of the date the student originally registered for the course.

208.11.4 Material Changes in Courses Certified for Continuing Education Purposes. Whenever there is a material change in a certified continuing education course, including a change in curriculum, course length, instructor, or refund policy, the provider shall promptly notify the Division in writing.

208.11.5 Course Evaluation Forms. At the end of each course, course providers shall require that each student complete a standard evaluation form provided by the Division. The forms shall be collected at the end of the class, sealed in an envelope, and mailed by the course provider to the Division within 10 days of the last class.

 

R162-208-12. Continuing Education Course Certification and Renewal.

208.12 All course certifications shall expire two years after their issuance.

208.12.1 Application for renewal of a continuing education course certification shall be made on the form required by the Division and shall include the non-refundable renewal fee.

208.12.1.1 If the certification of a continuing education course is not renewed within [three]six months after its expiration date, the course provider will be required to apply for a new certification for the course.

208.12.2 After a course has been renewed three times, the course provider will be required to apply for a new certification.

 

[R162-208-14. Individual Application for Continuing Education Credit.

208.14 A licensee may apply for continuing education credit for any non-certified continuing education course if the licensee believes the course will improve his ability to better protect or serve the public, provided the course was taken from a nationwide education provider. The subject matter of the course may not relate exclusively to the practice of the residential mortgage business in a state other than the State of Utah.

 

]R162-208-[15]14. Limitation on Multiple Use of Credit Hours.

208.[15]14 A mortgage licensee who is also licensed by the Division as a real estate broker, real estate sales agent, or real estate appraiser may not receive credit toward renewal of a mortgage license for continuing education hours that have already been used toward renewal of a real estate broker, real estate sales agent, or real estate appraiser license.

 

KEY: residential mortgage loan origination

Date of Enactment or Last Substantive Amendment: [October 24, 2006]2007

Authorizing, and Implemented or Interpreted Law: 61-2c-103(3); 61-2c-104(7)(d)(ii)