No. 29544 (Amendment): R162-207-6. Determining Fitness for Renewal

DAR File No.: 29544
Filed: 02/23/2007, 09:19
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose for this rule change is to set forth the qualifications for renewal of mortgage officer and principal lending manager licenses related to criminal convictions and to turn a policy of the Utah Residential Mortgage Regulatory Commission and the Utah Real Estate Division into rule. This will give notice to licensees of the types of criminal convictions that will prevent them from receiving approval to renew their licenses.

Summary of the rule or change:

Applicants for license renewal may not have had a felony conviction or entered a plea in abeyance to a felony during the term of their previous license.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)(a)(i)

Anticipated cost or savings to:

the state budget:

This rule change will eliminate an unknown number of the license application hearings before the Utah Residential Mortgage Regulatory Commission since it will deter applications to renew from applicants who would only be turned down after a hearing before the Commission because of the Commission's and the Division's policy concerning applicants for renewal with recent felony convictions. Fewer applications from convicted felons will result in fewer renewal hearings before the Commission, resulting in fewer or shorter Commission meetings. This will result in a savings to the state budget in the per diem payments to Commissioners. It is difficult to calculate how many meetings will be avoided, and how many meetings will be shortened from a full-day meeting to a half-day meeting, and therefore, the anticipated cost savings cannot be calculated.

local governments:

None--Local governments do not act as licensed mortgage loan officers, nor do they license mortgage loan officers. Therefore, local governments are not affected by the qualification requirements to obtain mortgage officer licenses.

other persons:

The only persons who are affected by the qualification requirements for mortgage licensure are the applicants for renewal of those licenses. By explicitly stating the types of crimes and the time periods that will disqualify an applicant from receiving a license, this rule will give notice to licensees if their criminal histories will disqualify them and therefore will save them from spending money on continuing education and application fees for licenses that they will not receive.

Compliance costs for affected persons:

None--The only persons affected by this rule are licensees with recent criminal convictions that will disqualify them from renewal if they apply for a license renewal. It will not cost these persons any money to comply with this rule, and it will actually save them from spending money since the rule will give them clear notice that they will not receive a license if they apply for a renewed license too soon after their convictions.

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

There appears to be no fiscal impact to businesses beyond the cost savings discussed in the rule filing. 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:

04/16/2007

This rule may become effective on:

04/24/2007

Authorized by:

Derek Miller, 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.

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, [T]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: 2007

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