No. 27129 (New Rule): R162-201. Residential Mortgage Definitions

DAR File No.: 27129
Filed: 04/30/2004, 08:29
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

In order to administer the exemptions in the Utah Residential Mortgage Practices Act, it is necessary to define the word "control."

 

Summary of the rule or change:

Control is defined as the power to directly or indirectly exercise a controlling influence over an entity, vote 20% or more of any class of voting securities of an entity by an individual, or vote more than 5% of any class of voting securities of an entity by another entity.

 

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)

 

Anticipated cost or savings to:

the state budget:

None--The definition of "control" for the purposes of the Utah Residential Mortgage Practices Act involves neither cost nor savings to the State budget.

 

local governments:

None--Local government is not affected by the definition of "control" as applied to the Utah Residential Mortgage Practices Act.

 

other persons:

The only other persons who would be affected by the definition of "control" as applied to the Utah Residential Mortgage Practices Act are those mortgage lenders who would not be required to license with the Division of Real Estate if the term "affiliate" in Subsection 61-2c-102(1) is affected by adopting the proposed definition of "control".

 

Compliance costs for affected persons:

A lesser number of entities may be required to license with the Division of Real Estate as a result of the definition of the word "control" and would thereby save licensing fees.

 

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

This rule filing adopts a definition of the term "control" as that term is used in the term "affiliate" in Subsection 61-2c-102(1). This definition codifies existing practice. Therefore, there appears to be no fiscal impact to businesses as a result of this rule filing.

 

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 801-530-6761, 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:

06/14/2004

 

This rule may become effective on:

06/15/2004

 

Authorized by:

Dexter Bell, Director

 

 

RULE TEXT

R162. Commerce, Real Estate.

R162-201. Residential Mortgage Definitions.

R162-201-1. Residential Mortgage Definitions.

As used in Section 61-2c-102(1) of the Utah Residential Mortgage Practices Act, "control" is defined as the power to directly or indirectly:

(a) direct or exercise a controlling influence over:

(i) the management or policies of an entity;

(ii) the election of a majority of the directors,

officers, managers, or managing partners of an entity;

(b) vote 20% or more of any class of voting securities of

an entity by an individual; or

(c) vote more than 5% of any class of voting securities of

an entity by another entity.

 

KEY: residential mortgage loan origination

2004

61-2c-103(3)