R162-2c-203. Utah-Specific Education Certification

  (1) School certification.

  (a) A school offering Utah-specific education shall certify with the division before providing any instruction.

  (b) To certify, a school applicant shall prepare and supply the following information to the division:

  (i) contact information, including:

  (A) name, phone number, email address, and address of the physical facility;

  (B) name, phone number, email address, and address of any school director;

  (C) name, phone number, email address, and address of any school owner; and

  (D) an e-mail address where correspondence will be received by the school;

  (ii) evidence that all school directors and owners meet the moral character requirements outlined in R162-2c-202(1) and the competency requirements outlined in R162-2c-202(2);

  (iii) school description, including:

  (A) type of school;

  (B) description of the school's physical facilities; and

  (C) type of instruction method;

  (iv) list of the instructor(s), including any guest lecturer(s), who will be teaching each course;

  (v) proof that each instructor:

  (A) has been certified by the division; or

  (B) is exempt from certification under Subsection 203(5)(f);

  (vi) statement of attendance requirements as provided to students;

  (vii) refund policy as provided to students;

  (viii) disclaimer as provided to students; and

  (ix) criminal history disclosure statement as provided to students.

  (c) Minimum standards.

  (i) The course schedule may not provide or allow for more than eight credit hours per student per day.

  (ii) The attendance statement shall require that each student attend at least 90% of the scheduled class time.

  (iii) The disclaimer shall adhere to the following requirements:

  (A) be typed in all capital letters at least 1/4 inch high; and

  (B) state the following language: "Any student attending (school name) is under no obligation to affiliate with any of the mortgage entities that may be soliciting for licensees at this school."

  (iv) The criminal history disclosure statement shall:

  (A) be provided to students while they are still eligible for a full refund; and

  (B) clearly inform the student that upon application with the nationwide database, the student will be required to:

  (I) accurately disclose the student's criminal history according to the licensing questionnaire provided by the nationwide database and authorized by the division; and

  (II) provide to the division complete court documentation relative to any criminal proceeding that the applicant is required to disclose;

  (C) clearly inform the student that the division will consider the applicant's criminal history pursuant to R162-2c-202(1) in making a decision on the application; and

  (D) include a section for the student's attestation that the student has read and understood the disclosure.

  (d) Within ten days after the occurrence of any material change in the information outlined in Subsection (1), the school shall provide to the division written notice of that change.

  (2) School certification expiration and renewal. A school certification expires 24 months from the date of issuance and must be renewed before the expiration date in order for the school to remain in operation. To renew, a school applicant shall:

  (a) complete a renewal application as provided by the division;

  (b) pay a nonrefundable renewal fee;

  (c) provide a list of all proposed courses with a projected schedule of days, times, and locations of classes; and

  (d) provide the information specified in Subsection 3(c) for Utah-specific course certification for the division's evaluation of each proposed course.

  (3) Utah-specific course certification.

  (a) A school providing a Utah-specific course shall certify the course with the division before offering the course to students.

  (b) Application shall be made at least 30 days prior to the date on which a course requiring certification is proposed to begin.

  (c) To certify a course, a school applicant shall prepare and supply the following information:

  (i) instruction method;

  (ii) outline of the course, including:

  (A) a list of subjects covered in the course;

  (B) reference to the approved course outline for each subject covered;

  (C) length of the course in terms of hours spent in classroom instruction;

  (D) number of course hours allocated for each subject;

  (E) at least three learning objectives for every hour of classroom time;

  (F) instruction format for each subject; i.e, lecture or media presentation;

  (G) name and credentials of any guest lecturer; and

  (H) list of topic(s) and session(s) taught by any guest lecturer;

  (iii) a list of the titles, authors, and publishers of all required textbooks;

  (iv) copies of any workbook used in conjunction with a non-lecture method of instruction;

  (v) a copy of each quiz and examination, with an answer key; and

  (vi) the grading system, including methods of testing and standards of grading.

  (d) Minimum standards.

  (i) All texts, workbooks, supplement pamphlets and other materials shall be appropriate, current, accurate, and applicable to the required course outline.

  (ii) The course shall cover all of the topics set forth in the associated outline.

  (iii) The lecture method shall be used for at least 50% of course instruction unless the division gives special approval otherwise.

  (iv) A school applicant that uses a non-lecture method for any portion of course instruction shall provide to the student:

  (A) an accompanying workbook as approved by the division for the student to complete during the instruction; and

  (B) a certified instructor available within 48 hours of the non-lecture instruction to answer student questions.

  (v) The division shall not approve an online education course unless:

  (A) there is a method to ensure that the enrolled student is the person who actually completes the course;

  (B) the time spent in actual instruction is equivalent to the credit hours awarded for the course; and

  (C) there is a method to ensure that the student comprehends the material.

  (4) Course expiration and renewal.

  (a) A prelicensing course expires at the same time the school certification expires.

  (b) A prelicensing course certification is renewed automatically when the school certification is renewed.

  (5) Education committee.

  (a) The commission may appoint an education committee to:

  (i) assist the division and the commission in approving course topics; and

  (ii) make recommendations to the division and the commission about:

  (A) whether a particular course topic is relevant to residential mortgage principles and practices; and

  (B) whether a particular course topic would tend to enhance the competency and professionalism of licensees.

  (b) The division and the commission may accept or reject the education committee's recommendation on any course topic.

  (6) Instructor certification.

  (a) Except as provided in this Subsection (6)(f), an instructor shall certify with the division before teaching a Utah-specific course.

  (b) Application shall be made at least 30 days prior to the date on which the instructor proposes to begin teaching.

  (c) To certify as an instructor of mortgage loan originator prelicensing courses, an individual shall provide evidence of:

  (i) a high school diploma or its equivalent;

  (ii)(A) at least five years of experience in the residential mortgage industry within the past ten years; or

  (B) successful completion of appropriate college-level courses specific to the topic proposed to be taught;

  (iii)(A) a minimum of twelve months of full-time teaching experience;

  (B) part-time teaching experience that equates to twelve months of full-time teaching experience; or

  (C) participation in instructor development workshops totaling at least two days in length; and

  (iv) having passed, within the six-month period preceding the date of application, the lending manager licensing examination.

  (d) To certify as an instructor of LM prelicensing courses, an individual shall:

  (i) meet the general requirements of this Subsection 6(c); and

  (ii) meet the specific requirements for any of the following courses the individual proposes to teach.

  (A) Management of a Residential Mortgage Loan Office: at least two years practical experience in managing an office engaged in the business of residential mortgage loans.

  (B) Mortgage Lending Law: two years practical experience in the field of real estate law; and either:

  (I) current active membership in the Utah Bar Association; or

  (II) degree from an American Bar Association accredited law school.

  (C) Advanced Appraisal:

  (I) at least two years practical experience in appraising; and

  (II) current state-certified appraiser license.

  (D) Advanced Finance:

  (I) at least two years practical experience in real estate finance; and

  (II) association with a lending institution as a loan originator.

  (e) To act as an instructor of NMLS-approved continuing education courses, an individual shall certify through the nationwide database.

  (f)(i) To act as an instructor of Division-approved continuing education courses, an individual shall complete the Division certification process at least 30 days prior to engaging in instruction.

  (ii) To certify with the Division as an instructor, an applicant shall provide the following:

  (A) applicant's name and contact information;

  (B) evidence that the applicant meets the competency requirements of Subsection R162-2c-202;

  (C) evidence that the applicant has graduated from high school or successfully completed equivalent education;

  (D) evidence that the applicant understands the subject matter to be taught, as demonstrated through:

  (I) a minimum of two years full-time experience as a mortgage licensee;

  (II) college-level education related to the course subject; or

  (III) demonstrated expertise in the subject proposed to be taught;

  (E) evidence that the applicant has the ability to teach, as demonstrated through:

  (F) a minimum of 12 months of full-time teaching experience; or

  (I) part-time teaching experience equivalent to 12 months full-time teaching experience;

  (II) a signed statement agreeing to allow the instructor's courses to be randomly audited on an unannounced basis by the Division or its representative;

  (G) a signed statement agreeing not to market personal sales products;

  (H) a signed statement certifying legal presence to work in the state;

  (I) any other information the Division requires or requests; and

  (J) a nonrefundable application fee.

  (g) The following instructors are not required to be certified by the division:

  (i) a guest lecturer who:

  (A) is an expert in the field on which instruction is given;

  (B) provides to the division a resume or similar documentation evidencing satisfactory knowledge, background, qualifications, and expertise; and

  (C) teaches no more than 20% of the course hours;

  (ii) a college or university faculty member who evidences academic training, industry experience, or other qualifications acceptable to the division;

  (iii) an individual who:

  (A) evidences academic training, industry experience, or other qualifications satisfactory to the division; and

  (B) receives approval from the commission; and

  (iv) a division employee.

  (h) Renewal.

  (i) An instructor certification for Utah-specific prelicensing education expires 24 months from the date of issuance and shall be renewed before the expiration date.

  (ii) To renew an instructor certification for Utah-specific prelicensing education, an applicant shall submit to the division:

  (A) evidence of having taught at least 20 hours of classroom instruction in a certified mortgage education course during the preceding two years;

  (B) evidence of having attended an instructor development workshop sponsored by the division during the preceding two years; and

  (C) a renewal fee as required by the division.

  (iii) To renew an instructor certification for continuing education, an individual shall certify through the nationwide database.

  (i) Reinstatement.

  (i) An instructor who is certified by the division may reinstate an expired certification within 30 days of expiration by:

  (A) complying with this Subsection (6)(g); and

  (B) paying an additional non-refundable late fee.

  (ii) Until six months following the date of expiration, an instructor who is certified by the division may reinstate a certification that has been expired more than 30 days by:

  (A) complying with this Subsection (6)(g);

  (B) paying an additional non-refundable late fee; and

  (C) completing six classroom hours of education related to residential mortgages or teaching techniques.

  (7)(a) The division may monitor schools and instructors for:

  (i) adherence to course content;

  (ii) quality of instruction and instructional materials; and

  (iii) fulfillment of affirmative duties as outlined in R162-2c-301a(5)(a) and R162-2c-301a(6)(a).

  (b) To monitor schools and instructors, the division may:

  (i) collect and review evaluation forms; or

  (ii) assign an evaluator to attend a course and make a report to the division.