No. 39442 (New Rule): Rule R343-10. Title Lenders Registration with the Nationwide Database

(New Rule)

DAR File No.: 39442
Filed: 06/12/2015 09:51:24 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

With the passage of S.B. 24, during the 2015 General Session, the department may by rule establish initial and renewal registration requirements for title lenders with the nationwide database.

Summary of the rule or change:

With the passage of S.B. 24 (2015), the department may by rule establish initial and renewal registration requirements for title lenders with the nationwide database.

State statutory or constitutional authorization for this rule:

• Subsection 7-24-201(4)

Anticipated cost or savings to:

the state budget:

The proposed new rule will not require additional appropriations because compliance to the rule affects title lenders not the department.

local governments:

Local governments are not involved in regulating title lenders and are therefore not subject to this rule.

small businesses:

The costs for conducting business as a title lender, for those who have not previously registered with the nationwide database, will increase. Title lenders that register with the nationwide database for the first time will have to pay any fees that are required by the nationwide database.

persons other than small businesses, businesses, or local governmental entities:

The costs for conducting business as a title lender, for those who have not previously registered with the nationwide database, will increase. Title lenders that register with the nationwide database for the first time will have to pay any fees that are required by the nationwide database.

Compliance costs for affected persons:

The costs for conducting business as a title lender, for those who have not previously registered with the nationwide database, will increase. Title lenders that register with the nationwide database for the first time will have to pay any fees that are required by the nationwide database.

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

The costs for conducting business as a title lender, for those who have not previously registered with the nationwide database, will increase. Title lenders that register with the nationwide database for the first time will have to pay any fees that are required by the nationwide database.

G. Edward Leary, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Financial Institutions
Nondepository LendersRoom 201
324 S STATE ST
SALT LAKE CITY, UT 84111-2393

Direct questions regarding this rule to:

• Paul Allred at the above address, by phone at 801-538-8854, by FAX at 801-538-8894, 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:

07/31/2015

This rule may become effective on:

08/07/2015

Authorized by:

Edward Leary, Commissioner

RULE TEXT

R343. Nondepository Lenders.

R343-10. Title Lenders Registration with the Nationwide Database.

R343-10-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 7-24-201(4).

(2) This rule applies to title lenders that are required to register with the nationwide database.

(3) This rule establishes initial and renewal registration requirements for deferred deposit lenders.

 

R343-10-2. Definitions.

(1) "Commissioner" means the Commissioner of Financial Institutions.

(2) "Department" means the Department of Financial Institutions.

(3) "Form MU1" means the Uniform Company License/Registration and Consent form adopted by the nationwide database.

(4) "NMLS" means the Nationwide Mortgage Licensing System located at http://mortgage.nationwidelicensingsystem.org/.

 

R343-10-3. Renewal of Current Registered Deferred Deposit Lenders.

(1) On or after November 1, 2015, title lenders that are registered with the department shall renew a registration through the NMLS.

(a) Title lenders that do not have a record in NMLS will be required to complete a Form MU1 on the NMLS website.

(b) Title lenders that have a record in NMLS and have submitted a company Form MU1 are not required to reenter their company information. Those with a record will complete the appropriate registration for Utah.

 

R343-10-4. Initial Registration of Deferred Deposit Lenders.

(1) On or after November 1, 2015, persons seeking authorization to transact business as a title lender in Utah or with a Utah resident may register with the department through the NMLS.

(a) Title lenders that do not have a record in NMLS will be required to complete a Form MU1 on the NMLS website.

(b) Title lenders that have a record in NMLS and have submitted a company Form MU1 are not required to reenter their company information. Those with a record will complete the appropriate registration for Utah.

 

R343-10-5. Fees.

(1) Title lenders filing an original registration through the NMLS shall pay the department an original registration fee as set forth in Subsection 7-1-401(8).

(2) Title lenders renewing a registration through NMLS shall pay an annual fee as set forth in Subsection 7-1-401(5).

(3) Title lenders renewing a registration through the NMLS in 2015, which have previously paid an annual fee in 2015, are not required to pay a second annual fee to the Department for 2015.

(4) Title lenders shall pay to the NMLS all fees required by NMLS.

 

KEY: title lenders, fees

Date of Enactment or Last Substantive Amendment: 2015

Authorizing, and Implemented or Interpreted Law: 7-24-201(4)

 

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