(New Rule)
DAR File No.: 33099
Filed: 10/26/2009 11:37:16 AMRULE ANALYSIS
Purpose of the rule or reason for the change:
This rule establishes education and written test requirements for mortgage loan originators who are required to be licensed under Title 70D.
Summary of the rule or change:
An applicant must satisfy pre-licensing education and written testing requirements to be eligible to apply for a mortgage loan originator license under Title 70D. This rule establishes these requirements.
State statutory or constitutional authorization for this rule:
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 84111-2393Direct 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 pallred@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:
12/15/2009
This rule may become effective on:
12/22/2009
Authorized by:
Edward Leary, Commissioner
RULE TEXT
R343. Financial Institutions, Nondepository Lenders.
R343-7. Mortgage Loan Originator Education and Written Test Requirements.
R343-7-1. Authority, Scope and Purpose.
(1) This rule is issued pursuant to Sections 70D-3-301, 70D-3-302 and 70D-3-303.
(2) This rule applies to mortgage loan originators who are required to license with the department.
(3) This rule establishes education and written test requirements.
R343-7-2. Education and Written Test Requirements.
(1) An applicant must satisfy pre-licensing education and written testing requirements to be eligible to apply for a mortgage loan originator license.
(2) An applicant must complete at least twenty (20) hours in pre-licensing education courses that are approved by the nationwide database and includes the curriculum specified in Section 70D-3-301.
(3) In order to pass a written test an applicant must achieve a test score of not less than 75 percent correct answers on a written test meeting the standards described in Section 70D-3-302.
(a) An individual who fails such a written test by scoring less than 75 percent correct may be retested up to three times provided each test is taken at least 30 days after the prior test.
(b) An individual who fails all three retests must wait at least six months before taking the written test again.
(c) A licensee who fails to maintain a valid license for a period longer than 5 years, excluding any time during which that individual is a "registered loan originator" as defined in Section 70D-3-102, must retake the written test and must achieve a score of not less than 75 percent correct in order to be eligible for license renewal.
(4) Continuing education is required for annual license renewal.
(a) Annually, a licensee must complete at least eight (8) hours of continuing education courses that are approved by the nationwide database and include curriculum specified in Section 70D-3-303.
(b) A licensee may receive credit for a course only during the year in which the course is taken. If a licensee repeats an approved course during the same or a successive year, the licensee may not receive continuing education credit for retaking the same course.
KEY: mortgage
Date of Enactment or Last Substantive Amendment: 2009
Authorizing, and Implemented or Interpreted Law: 70D-3-301; 70D-3-302; 70D-3-303
Document Information
- Effective Date:
- 12/22/2009
- Publication Date:
- 11/15/2009
- Filed Date:
- 10/26/2009
- Agencies:
- Financial Institutions,Nondepository Lenders
- Rulemaking Authority:
Section 70D-3-301
Section 70D-3-302
Section 70D-3-303
- Authorized By:
- Edward Leary, Commissioner
- DAR File No.:
- 33099
- Related Chapter/Rule NO.: (1)
- R343-7. Mortgage Loan Originator Education and Written Test Requirements.