No. 31002 (Amendment): R162-207-6. Determining Fitness for Renewal

DAR File No.: 31002
Filed: 02/15/2008, 02:14
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to put applicants seeking mortgage officer and principal lending manager license renewal on notice that in order to qualify for renewal an applicant may not have finding of fraud, misrepresentation, or deceit entered against them related to activities requiring a mortgage officer license by a court or any government agency unless the finding was considered when approving the applicant's initial license or previous license renewals.

Summary of the rule or change:

Adding the requirement that in order to qualify for renewal of a mortgage officer or principal lending manager license, an applicant may not have a finding of fraud, misrepresentation, or deceit entered against them related to activities requiring a mortgage officer license by any court or any government agency unless the finding was considered when approving the applicant's initial license or previous license renewals.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3) and Section 61-2c-205

Anticipated cost or savings to:

the state budget:

None--The proposed amendment has no impact on the state budget as it establishes requirements for license renewal for license applicants.

local governments:

None--Rules made regarding requirements for license renewal have no impact on local governments.

small businesses and persons other than businesses:

The only persons who are affected by establishing requirements for license renewal are those renewing their licenses.

Compliance costs for affected persons:

It could make it more difficult for certain applicants to become licensed, but that loss to potential applicants is not determinable.

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

This rule filing established a provision automatically disqualifying applicants who have had a finding of fraud, misrepresentation, or deceit entered against them by a court or a governmental agency. Although this provision will make it more difficult for certain applicants to become licensed, it is unclear how many potential applicants would be affected or how the fiscal impact of that effect could be estimated. Francine 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:

Laurie Noda at the above address, by phone at 801-366-0328, 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:

03/31/2008

This rule may become effective on:

04/07/2008

Authorized by:

Mark Steinagel, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-207. License Renewal.

R162-207-6. Determining Fitness for Renewal.

207.6 Qualifications for Renewal. In order to qualify for renewal, all mortgage officer and principal lending manager applicants, and all directors, executive officers, and managing partners of any entity applicant, and anyone who occupies a position or performs functions similar to a director, executive officer, manager, or managing partner of any entity applicant, shall meet the following qualifications. None of these persons may have:[, during the term of the last license or during the period between license expiration and application to reinstate an expired license, been convicted of, or entered a plea in abeyance to, a felony.]

(a) been convicted of, or entered a plea in abeyance to, a felony; or during the term of the last license or during the period between license expiration and application to reinstate an expired license;

(b) a finding of fraud, misrepresentation or deceit entered against the applicant, related to activities requiring a mortgage license, by any court of competent jurisdiction or any government agency, unless the finding was explicitly considered by the Division in approving the applicant's initial license or previous license renewals.

207.6.1 Determining fitness for renewal. In determining whether an applicant who has not been disqualified by Subsection 207.6 meets the requirements of good moral character, honesty, integrity, and truthfulness, the commission and the division shall determine fitness for renewal in accordance with Section 202.5.2 above.

 

KEY: residential mortgage loan origination

Date of Enactment or Last Substantive Amendment: [May 1, 2007]2008

Authorizing, and Implemented or Interpreted Law: 61-2c-103(3); 61-2c-202(4)(a)(ii)