DAR File No. 32517

Commerce, Real Estate

R162-202

Initial Application

NOTICE OF PROPOSED RULE

DAR File No.: 32517
Filed: 04/08/2009, 05:45
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The 2008 Legislature amended the Utah Code to permit the Division and Residential Mortgage Regulatory Commission to set the number of prelicensing education hours by rule, rather than by statute. The Division and Commission believe now is the time to increase the education requirements for mortgage officers.

Summary of the rule or change:

This rule filing sets the number of prelicensing education hours at 60, beginning 01/01/2010.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-202(4)(a)(iii)(B)

Anticipated cost or savings to:

the state budget:

The state budget will experience no cost or savings due to this rule filing because the Division's procedure for course approval will be identical to its current format.

local governments:

Local governments will experience no cost or savings due to this rule filing because they are not required to license mortgage brokers.

small businesses and persons other than businesses:

Small businesses should experience no cost or savings due to this rule filing since they hire individuals after the individuals have already paid for the cost of prelicensing education.

Compliance costs for affected persons:

Prelicense education providers and individual applicants for licensure will be required to cover the cost of the increased education.

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

Pursuant to recent statutory amendments giving the Division and the Commission authority to establish the number of prelicensing education hours required for licensure of a mortgage officer, the Division and the Commission require an additional 40 hours of prelicensing education in order to protect the public from applicants who are not properly educated. As indicated in the rule summary, there will be a cost impact to new licensees who must obtain this additional education, but it is expected that the benefit to the public will outweigh the cost to license applicants. Francine Giani, Executive Director

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

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Mark Steinagel at the above address, by phone at 801-530-6744, by FAX at 801-530-6749, or by Internet E-mail at [email protected]

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:

06/01/2009

This rule may become effective on:

06/08/2009

Authorized by:

Mark Steinagel, Director

R162. Commerce, Real Estate.

R162-202. Initial Application.

R162-202-2. Form of Application.

202.2 All applications must be made in the form required by the division and shall include the following information:

202.2.1 Any name under which the individual will transact business in this state;

202.2.2 The address of the principal business location of the applicant;

202.2.3 The home street address and home telephone number of any individual applicant;

202.2.4 A mailing address for the applicant;

202.2.5 The date of birth and social security number of any individual applicant;

202.2.6 Answers to a "Licensing Questionnaire" supplying information about present or past mortgage licensure in other jurisdictions, past license sanctions or surrenders, pending disciplinary actions, pending investigations, past criminal convictions or pleas, and/or civil judgments based on fraud, misrepresentation, or deceit;

202.2.7 A "Letter of Waiver" authorizing the division to obtain the fingerprints of the applicant, review past and present employment and education records, and to conduct a criminal history background check;

202.2.8 If an individual applicant or a director, executive officer, manager, or a managing partner of an entity applicant, or anyone who occupies a position or performs functions similar to a director, executive officer, manager or managing partner of an entity that has applied for a license, has been convicted of any felonies or misdemeanors involving moral turpitude within the ten years preceding application, the charging document, the judgment and sentencing document, and the case docket on each such conviction must be provided with the application; and

202.2.9 If an individual or entity applicant or a director, executive officer, manager, or a managing partner of an entity applicant, or anyone who occupies a position or performs functions similar to a director, executive officer, manager or managing partner of an entity that has applied for a license, has had a license or registration suspended, revoked, surrendered, canceled or denied in the five years preceding application based on misconduct in a professional capacity that relates to good moral character or the competency to transact the business of residential mortgage loans, the documents stating the sanction taken against the license or registration and the reasons therefore must be provided with the application.

202.2.10 Applicants for a mortgage officer license shall submit proof in the form required by the Division of successful completion of the [20 ]hours of approved prelicensing education required by Section 61-2c-202(4)(a)[(i)(C)](iii)(B) and R162-202-10 taken within one year prior to application; or

202.2.11 [Except as provided in Section 61-2c-206(2)(b), applicants]An applicant for a principal lending manager license shall submit proof in the form required by the Division of successful completion of the 40 hours of approved prelicensing education required by Section 61-2c-206(1)(c) taken within one year prior to application.

 

R162-202-10. Prelicensing Education Requirements.

202.10.1 Beginning January 1, 2010, an applicant for a mortgage officer license shall submit proof of completing 60 hours of prelicense education that complies with the course content outline adopted by the Residential Mortgage Regulatory Commission and the Division.

 

KEY: residential mortgage loan origination

Date of Enactment or Last Substantive Amendment: [May 1, 2007]2009

Notice of Continuation: December 13, 2006

Authorizing, and Implemented or Interpreted Law: 61-2c-103(3)