(Amendment)
DAR File No.: 42809
Filed: 04/17/2018 11:30:15 AMRULE ANALYSIS
Purpose of the rule or reason for the change:
The purpose of this proposed rule amendment is to provide optional experience equivalency for licensed mortgage loan originators who have been working as a junior loan officer or an assistant loan officer.
Summary of the rule or change:
This proposed rule amendment would change Sections R162-2c-501a and R162-2c-501b to provide up to 15 optional experience points to licensed mortgage loan originators. The optional experience would be 0.5 points for each month of full-time employment as a junior loan officer or an assistant loan officer.
Statutory or constitutional authorization for this rule:
Anticipated cost or savings to:
the state budget:
The Division of Real Estate (Division) has the staff and budget in place to administer this proposed amendment. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to those resources or result in any additional cost or savings to the state budget.
local governments:
Local governments are not required to comply with or enforce this rule. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to local governments.
small businesses:
This proposed amendment does not create new obligations for small businesses, nor does it increase the costs associated with any existing obligation. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to small businesses.
persons other than small businesses, businesses, or local governmental entities:
This proposed amendment does not create new obligations for persons other than small businesses, businesses, or local government entities, nor does it increase the costs associated with any existing obligation. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to persons other than small businesses, businesses, or local government entities.
Compliance costs for affected persons:
This proposed rule amendment does not create new obligations for affected persons subject to the administrative rules nor does it increase the costs associated with any existing obligation. Rather, this proposed rule amendment would recognize optional experience of certain mortgage loan originators, thereby allowing these affected persons to qualify for lending manager status more quickly than would otherwise be possible. After conducting a thorough analysis, it was determined that this proposed rule amendment will not result in a fiscal impact to affected persons.
Comments by the department head on the fiscal impact the rule may have on businesses:
The Section R162-2c-501a amendment provides optional experience equivalency to a licensed mortgage loan originator working as a junior loan officer or an assistant loan officer. The Section R162-2c-501b amendment provides the experience equivalency for a licensed mortgage loan originator working as a junior loan officer or an assistant loan officer is calculated at one-half point per month. These proposed amendments do not create new obligations for small businesses nor do they have any fiscal impact on small businesses.
Francine A. Giani, Executive Director
The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:
Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316Direct questions regarding this rule to:
- Justin Barney at the above address, by phone at 801-530-6603, by FAX at , or by Internet E-mail at justinbarney@utah.gov
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:
06/14/2018
This rule may become effective on:
06/21/2018
Authorized by:
Jonathan Stewart, Director
RULE TEXT
Appendix 1: Regulatory Impact Summary Table*
Fiscal Costs
FY 2018
FY 2019
FY 2020
State Government
$0
$0
$0
Local Government
$0
$0
$0
Small Businesses
$0
$0
$0
Non-Small Businesses
$0
$0
$0
Other Persons
$0
$0
$0
Total Fiscal Costs:
$0
$0
$0
Fiscal Benefits
State Government
$0
$0
$0
Local Government
$0
$0
$0
Small Businesses
$0
$0
$0
Non-Small Businesses
$0
$0
$0
Other Persons
$0
$0
$0
Total Fiscal Benefits:
$0
$0
$0
Net Fiscal Benefits:
$0
$0
$0
*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non-Small Businesses are described below.
Appendix 2: Regulatory Impact to Non-Small Businesses
There are a total of 597 mortgage companies licensed to do residential mortgage business in the state of Utah. Approximately one-fourth of these companies are large businesses in the mortgage industry (NAICS 522292) in Utah. These large businesses may experience a fiscal benefit associated with the proposed optional experience equivalency calculation for licensed mortgage loan originators applying to become licensed lending managers. The full impact to these non-small businesses cannot be estimated because the data necessary to determine how increased revenue or lower costs is not available.
This Fiscal Analysis reviewed and approved by Francine A. Giani, Executive Director, Commerce Department.
R162. Commerce, Real Estate.
R162-2c. Utah Residential Mortgage Practices and Licensing Rules.
R162-2c-501a. Optional Experience Equivalency Calculation.
(1) Thirty months of full-time experience in the following activities shall be considered equivalent to one year of experience as a first-lien residential mortgage loan originator:
(a) loan underwriter;
(b) mortgage loan manager;
(c) loan processor;
(d) certified mortgage prelicensing instructor;[
and](e) second-lien residential loan originator[
.]; and(f) a licensed mortgage loan originator working as a junior loan officer or assistant loan officer.
(2) An applicant who wishes to receive experience credit under this Subsection R162-2c-501a, but who cannot demonstrate experience equivalent to a full year of first-lien residential mortgage loan origination shall:
(a) be awarded experience credit as deemed appropriate by the division; and
(b) complete the experience requirement through additional experience as a first-lien residential mortgage loan originator, as determined by the division.
R162-2c-501b. Optional Experience Points Table.
TABLE
APPENDIX 3 - OPTIONAL EXPERIENCE TABLE
Professional activity possible points
(1) Loan underwriter 0.5 pt/month
(2) Mortgage loan manager 0.5 pt/month
(3) Loan processor 0.5 pt/month
(4) Certified mortgage prelicensing
instructor 0.5 pt/month
(5) Second-lien residential loan originator 0.5 pt/month
(6) Licensed mortgage loan originator working 0.5 pt/month
as a junior loan officer or as an assistant
loan officerKEY: residential mortgage, loan origination, licensing, enforcement
Date of Enactment or Last Substantive Amendment: [
July 11, 2017]2018Notice of Continuation: March 31, 2015
Authorizing, and Implemented or Interpreted Law: 61-2c-103(3); 61-2c-402(4)(a)
Document Information
- Effective Date:
- 6/21/2018
- Publication Date:
- 05/15/2018
- Type:
- Notices of Proposed Rules
- Filed Date:
- 04/17/2018
- Agencies:
- Commerce, Real Estate
- Rulemaking Authority:
Section 61-2c-203
Section 61-2c-103
Section 61-2c-206
- Authorized By:
- Jonathan Stewart, Director
- DAR File No.:
- 42809
- Summary:
This proposed rule amendment would change Sections R162-2c-501a and R162-2c-501b to provide up to 15 optional experience points to licensed mortgage loan originators. The optional experience would be 0.5 points for each month of full-time employment as a junior loan officer or an assistant loan officer.
- CodeNo:
- R162-2c
- CodeName:
- {27655|R162-2c|R162-2c. Utah Residential Mortgage Practices and Licensing Rules}
- Link Address:
- CommerceReal EstateHEBER M WELLS BLDG160 E 300 SSALT LAKE CITY, UT 84111-2316
- Link Way:
Justin Barney, by phone at 801-530-6603, by FAX at , or by Internet E-mail at justinbarney@utah.gov
- AdditionalInfo:
- More information about a Notice of Proposed Rule is available online. The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2018/b20180515.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version. Text to be deleted is struck through and surrounded by brackets ([example]). Text ...
- Related Chapter/Rule NO.: (1)
- R162-2c. Utah Residential Mortgage Practices and Licensing Rules.