No. 33095 (New Rule): Rule R343-3. Mortgage Lenders, Brokers and Servicers Definitions

(New Rule)

DAR File No.: 33095
Filed: 10/26/2009 11:24:34 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to define terms.

Summary of the rule or change:

This rule provides definitions that apply to mortgage lenders, brokers, or servicers who engage in the business of mortgage lending, brokering, or servicing and are required to license with the commissioner.

State statutory or constitutional authorization for this rule:

• Section 70D-3-102

Anticipated cost or savings to:

the state budget:

The proposed new rule will not require additional appropriations.

local governments:

Local governments are not involved in regulating mortgage loan originators and are therefore not subject to this rule.

small businesses:

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ("SAFE Act") was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the Nationwide Mortgage Licensing System and Registry (NMLS). As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate. (DAR NOTE: H.B. 286 (2009) is found at Chapter 72, Laws of Utah 2009, and was effective 05/12/2009.)

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

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The SAFE Act was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the NMLS. As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

Compliance costs for affected persons:

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The SAFE Act was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the NMLS. As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

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

The costs for conducting business as a mortgage loan originator, for those who were not previously required to license in the State of Utah, will increase. The SAFE Act was passed by Congress on 07/30/2008. The SAFE Act gave states one year to pass legislation requiring the licensure of mortgage loan originators according to national standards and the participation of state agencies on the NMLS. As a result, the 2009 General Session of the Utah Legislature, passed H.B. 286 which requires individuals who transact business under Title 70D to be licensed to meet the requirements of the federal mandate.

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 Lenders
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:

12/15/2009

This rule may become effective on:

12/22/2009

Authorized by:

Edward Leary, Commissioner

RULE TEXT

R343. Financial Institutions, Nondepository Lenders.

R343-3. Mortgage Lenders, Brokers and Servicers Definitions.

R343-3-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 70D-3-102.

(2) This rule applies to mortgage lenders, brokers or servicers who engage in the business of mortgage lending, brokering or servicing and are required to license with the commissioner.

(3) The purpose of this rule is to define terms.

 

R343-3-2. Definitions.

(1) "Affiliate" means any company which controls, is controlled by, or is under common control with a depository institution that is subject to the jurisdiction of a federal banking agency.

(2) "Form MU4" means the Uniform Individual Mortgage License/Registration and Consent form adopted by the nationwide database.

(3) "Owned and controlled by a depository institution" means a subsidiary entity that is owned by a parent financial institution that has direct or indirect power to direct or exercise a controlling influence over management or policies.

 

KEY: mortgage

Date of Enactment or Last Substantive Amendment: 2009

Authorizing, and Implemented or Interpreted Law: 70D-3-102

 

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