No. 43176 (Repeal): Rule R343-9. Deferred Deposit Lenders Registration with the Nationwide Database

(Repeal)

DAR File No.: 43176
Filed: 08/30/2018 01:10:23 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

After the passage of S.B. 150, during the 2013 General Legislative Session, the Department of Financial Institutions (Department) established by rule initial registration requirements for deferred deposit lenders with the nationwide database. S.B. 150 (2013) provided that rule could provide for the transition of persons registering with the nationwide database. The transition period has been in place for five years and is no longer necessary.

Summary of the rule or change:

The rule is being repealed in its entirety.

Statutory or constitutional authorization for this rule:

• Subsection 7-23-201(2)(f)

Anticipated cost or savings to:

the state budget:

Repealing this rule will not have a fiscal impact on state government revenues or expenditures. This rule contains guidance for persons transiting to registering with the nationwide database. The transition period has ended and the ongoing requirements of this rule are spelled out in statute and thus this rule is no longer necessary.

local governments:

Repealing this rule will not have a fiscal impact on local governments' revenues or expenditures. This rule contains guidance for persons transiting to registering with the nationwide database. The transition period has ended and the ongoing requirements of this rule are spelled out in statute and thus this rule is no longer necessary.

small businesses:

Repealing this rule will not have a fiscal impact on small businesses' revenues or expenditures. This rule contains guidance for persons transiting to registering with the nationwide database. The transition period has ended and the ongoing requirements of this rule are spelled out in statute and thus this rule is no longer necessary.

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

Repealing this rule will not have a fiscal impact on other individuals' revenues or expenditures. This rule contains guidance for persons transiting to registering with the nationwide database. The transition period has ended and the ongoing requirements of this rule are spelled out in statute and thus this rule is no longer necessary.

Compliance costs for affected persons:

There are no compliance costs for affected persons.

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

Repealing this rule will not have a fiscal impact on businesses' revenues or expenditures. This rule contains guidance for persons transiting to registering with the nationwide database. The transition period has ended and the ongoing requirements of this rule are spelled out in statute and thus this rule is no longer necessary.

Edward Leary, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office 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:

10/15/2018

This rule may become effective on:

10/22/2018

Authorized by:

Edward Leary, Commissioner

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$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 in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

The proposed repeal of this rule is not expected to have a fiscal impact on non-small businesses' revenues or expenditures because the rule contains guidance for persons transiting to registering with the nationwide database. The transition period has ended and the ongoing requirements of this rule are spelled out in statute and thus this rule is no longer necessary.

 

 

R343. Financial Institutions, Nondepository Lenders.

[R343-9. Deferred Deposit Lenders Registration with the Nationwide Database.

R343-9-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 7-23-201(2)(f).

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

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

 

R343-9-2. 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.

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

 

R343-9-3. Renewal of Current Registered Deferred Deposit Lenders.

(1) On or after November 1, 2013, deferred deposit lenders that are registered with the department shall renew a registration through the NMLS.

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

(b) Deferred deposit 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.

 

R343-9-4. Initial Registration of Deferred Deposit Lenders.

(1) On or after November 1, 2013, persons seeking authorization to transact business as a deferred deposit lender in Utah or with a Utah resident may register with the department through the NMLS.

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

(b) Deferred deposit 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.

 

R343-9-5. Fees.

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

(3) Deferred deposit lenders renewing a registration through the NMLS in 2013, which have previously paid an annual fee in 2013, are not required to pay a second annual fee to the Department for 2013.

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

 

KEY: deferred deposit lenders, fees

Date of Enactment or Last Substantive Amendment: September 23,

Authorizing, and Implemented or Interpreted Law: 7-23-201(2)(f)]

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