No. 32422 (New Rule): R162-211. Adjusted Licensing Terms

DAR File No.: 32422
Filed: 03/02/2009, 04:01
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Congress passed the SAFE Mortgage License Act, which became effective on 07/30/2008. It includes significant changes to state-issued mortgage licenses. Utah needs to adjust its terms of licensure from a two-year rolling renewal to a one-year calendar renewal. Without this rule, the Division will continue issuing two-year licenses that will likely need to be adjusted part way through the term of licensure. This rule will allow the Division to issue licenses that comply with the Congressional mandate, as well as recognize the full terms of licensure received with a license. A previous emergency rule contained precisely the same language. This rule makes permanent the emergency rule. (DAR NOTE: The corresponding 120-day (emergency) rule was published under DAR No. 32200 in the January 1, 2009, Bulletin (2009-1/pg. 54), and was effective 12/08/2008.)

Summary of the rule or change:

This rule makes permanent an emergency rule adopted by the Division to bring Utah into compliance with the federal SAFE Act. The rule transitions all licensees onto a one-year calendar license renewal cycle by adjusting terms of licensure to be more or less than two years, in accordance with the authority granted under Subsection 61-2c-205(1). By taking 25 months to transition, the Division will be causing the least amount of impact on mortgage licensees. Many licensees will be granted a license term beyond 2 years, while others will be granted a license between 12 and 24 months, rather than a full 24 months.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-205(1)(b)

Anticipated cost or savings to:

the state budget:

There will be minimal costs to the state budget since the fee amounts will not be changed. Many licensees will gain a slightly longer term of licensure for no additional fee, while others will experience a shortened term of licensure for the same fee cost.

local governments:

Local governments will experience no cost or savings to implement this act because they do not pay mortgage licensing fees.

small businesses and persons other than businesses:

Small mortgage companies should recognize a cost savings, since the average licensee will gain a slightly longer term of licensure than is currently granted for the existing fee.

Compliance costs for affected persons:

Many licensees will benefit by a longer term of licensure without any additional fee. Other licensees will have a shorter licensing term than is currently required. They will have to renew, and pay the costs associated with renewal, sooner than is currently required.

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 beyond those addressed by Congress in passing the SAFE Mortgage Licensing Act, and as indicated in the rule summary. 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:

Mark Steinagel at the above address, by phone at 801-530-6744, 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:

04/14/2009

This rule may become effective on:

04/21/2009

Authorized by:

Mark Steinagel, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-211. Adjusted License Terms.

R162-211-1. Adjusted License Terms to Comply with Nationwide Mortgage Licensing System.

(1) Notwithstanding other provisions in R162, Sections R162-201 through R162-210, licensing terms for a license issued under the authority of Title 61, Chapter 2c, and rules made by the Division shall be adjusted according to the following schedule:

(a)(i) An applicant for license renewal whose license expires between January 1, 2008, and December 31, 2008, and who applies for and qualifies for renewal under Title 61, Chapter 2c, and rules made by the Division shall be issued a license for a term that expires December 31, 2010.

(ii) An applicant between January 1, 2008, and December 31, 2008, and who applies for and qualifies for licensure under Title 61, Chapter 2c, and rules made by the Division shall be issued a license for a term that expires December 31, 2010.

(iii) The Division shall issue a new license with the new expiration date to a licensee who was issued a mortgage license during 2008 prior to the enactment of this rule.

(b) An applicant for license renewal whose license expires between January 1, 2009, and December 31, 2009, and who applies for and qualifies for renewal under Title 61, Chapter 2c, and rules made by the Division shall be issued a license for a term that expires December 31, 2010.

(c) An applicant for licensure who applies for licensure between January 1, 2009, and December 31, 2009, and who qualifies for licensure under Title 61, Chapter 2c, and rules made by the Division shall be issued a license for a term that expires December 31, 2010.

(d) An applicant for licensure who applies for licensure between January 1, 2010, and December 31, 2010, shall comply with the procedures for licensure under Title 61, Chapter 2c, and rules made by the Division existing at time of licensure or license renewal.

(2) This rule does not affect any provisions under Rules R162-201 through R162-210 regarding licensee discipline.

 

KEY: mortgage renewal license term

Date of Enactment or Last Substantive Amendment: 2009

Authorizing, and Implemented or Interpreted Law: 61-2c-205(1)(b)