Commerce, Real Estate

Rule R162-203

Changes to Residential Mortgage Licensure Statement

Notice of Proposed Rule

(Repeal)

DAR File No.: 33375
Filed: 02/11/2010 09:35:16 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Rule R162-203 is repealed in light of the Division's proposed new Rule R162-2c which updates the provisions of the existing rule to comply with procedures mandated by the nationwide database. (DAR NOTE: The proposed new Rule R162-2c is under DAR No. 33372 in this issue, March 1, 2010, of the Bulletin.)

Summary of the rule or change:

Rule R162-203 is repealed in its entirety.

State statutory or constitutional authorization for this rule:

• Subsection 61-2c-103(3)

Anticipated cost or savings to:

the state budget:

Repealing this rule relieves the state from having to oversee and enforce it. The costs to the state of implementing and overseeing the new provisions as to changes in licensure are included in the rule analysis for proposed new Rule R162-2c.

local governments:

Local governments have never been subject to this rule. Repealing it will have no fiscal impact to local governments.

small businesses:

Repealing this rule relieves small businesses from having to comply with it. The costs to small businesses of having to comply with the new provisions as to changes in licensure are included in the rule analysis for proposed new Rule R162-2c.

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

Repealing this rule relieves affected persons from having to comply with it. The costs to affected persons of having to comply with the new provisions as to changes in licensure are included in the rule analysis for proposed new Rule R162-2c.

Compliance costs for affected persons:

In repealing this rule, the division relieves affected persons of any obligation to comply with it. There are no compliance costs.

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

No fiscal impact to businesses is anticipated from this rule repeal as a substitute rule amendment updates the provisions of this rule to comply with procedures in the nationwide database.

Francine A. 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
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at jjonsson@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:

03/31/2010

This rule may become effective on:

04/07/2010

Authorized by:

Deanna Sabey, Director

R162. Commerce, Real Estate.

[R162-203. Changes to Residential Mortgage Licensure Statement.

R162-203-1. Status Changes.

203.1. A licensee shall notify the Division within ten working days of any status change. Status changes are effective on the date the properly executed forms and non-refundable fees are received by the Division. Notice must be on the forms required by the Division.

203.1.1 Change in Entity. If a change in a licensed entity results in the creation of a new legal entity, the new entity may not operate under the license issued to the previous entity. If the change of partners in a partnership, either by the addition or withdrawal of partners, creates a new legal entity, the new entity may not operate under the license issued by the Division to the previous partnership. The dissolution of a corporation, partnership, limited liability company, association, or other entity that holds a license issued by the Division terminates that license.

203.1.1.1 Notification of Change in Entity. The principal lending manager of a licensed entity shall provide written notification to the Division of any change in the entity that will create a new legal entity or that will cause the dissolution of the entity prior to the effective date of the change.

203.1.2. Change of name requires submission of official documentations such as a marriage certificate, divorce decree, or driver's license.

203.1.3. Change of business, home address or mailing address requires written notification. A post office box without a street address is unacceptable as a business or home address. The licensee may designate any address to be used as a mailing address.

203.1.4. Change of name of a licensed entity shall be accompanied by evidence that the new name has been approved by the Division of Corporations and Commercial Code, Department of Commerce.

203.1.5. Change of principal lending manager of a licensed entity requires notice from the entity in the form required by the Division, signed by both the terminating principal lending manager and the new principal lending manager, and the applicable change fee.

 

R162-203-2. Affiliation with Principal Lending Manager.

203.2.1 A mortgage officer licensed under the Utah Residential Mortgage Practices Act shall notify the Division, on the form required by the Division, of the principal lending manager on whose behalf that individual mortgage officer shall conduct residential mortgage lending before acting on behalf of that principal lending manager.

203.2.2. Transfers. Prior to transferring from one principal lending manager to another, or from one branch office to another, the licensee must mail, deliver, or electronically transmit to the Division written notice of the transfer on the form required by the Division.

 

R162-203-3. Unavailability of Licensee.

203.3.1 Change in license affiliation of Mortgage Officers. If a mortgage officer is not available to properly execute the form required to terminate the license affiliation of the mortgage officer with a principal lending manager, the principal lending manager may still terminate the mortgage officer's license affiliation with the principal lending manager, provided a letter advising the mortgage officer of the termination is mailed by the principal lending manager by certified mail to the last known address of the mortgage officer. A verified copy of the letter and proof of mailing by certified mail shall be attached to the form required to terminate the mortgage officer's license affiliation with the principal lending manager when the form is submitted to the Division.

203.3.1.1 If a mortgage officer's principal lending manager is not available to properly execute the form required to terminate the license affiliation of the mortgage officer with a principal lending manager, the mortgage officer may still terminate the mortgage officer's license affiliation with the principal lending manager, provided the mortgage officer sends to the principal lending manager by certified mail to the last known address of the principal lending manager a letter advising the principal lending manager of the mortgage officer's resignation. A verified copy of the letter and proof of mailing by certified mail shall be attached to the form required to terminate the mortgage officer's license affiliation with the principal lending manager when the form is submitted to the Division.

203.3.2 Change in Entity Affiliation of Principal Lending Manager. If a principal lending manager who will no longer be the principal lending manager of an entity is not available to properly execute the form that is required by the Division to substitute one principal lending manager for the other, the change in principal lending manager may still be made by the entity, provided a letter advising of the change is signed by a person who is legally authorized to make staffing decisions on behalf of the entity and mailed by certified mail to the last known address of the unavailable person. A verified copy of the letter and proof of mailing by certified mail shall be attached to the form required by the Division to substitute one principal lending manager for another when the form is submitted to the Division.

 

R162-203-4. Inactivation.

203.4 To voluntarily inactivate a license, the licensee shall deliver, mail, or electronically transmit to the Division a written request for license inactivation on the form required by the Division, which form shall have been signed by both the licensee and the licensee's principal lending manager.

203.4.1 The principal lending manager of the entity with which a mortgage officer is licensed may terminate the mortgage officer's license affiliation with the entity without the mortgage officer's consent, known as an "involuntarily inactivation" of the mortgage officer's license by complying with R162-203.3.1.

 

R162-203-5. Activation.

203.5 All licensees changing to active status must submit to the Division:

(a) the applicable non-refundable activation fee;

(b) a written request for activation on the form required by the Division; and

(c) if the licensee was on inactive status at the time of the most recent renewal, proof of successful completion of the number of hours of continuing education that would have been required to renew had the licensee been on active status at the time of the licensee's most recent renewal. To qualify as continuing education for activation, all continuing education hours submitted must have been completed within twenty-four months prior to applying to activate.

203.5.1 In addition to the requirements of Section 203.5, any licensee who was licensed prior to January 1, 2005, but whose license was inactivated by the Division for failure to submit proof by January 1, 2005 of having passed the examination required by Section 61-2c-202(4)(a)(i)(D), shall submit to the Division proof of having passed that examination before the Division will activate the individual's license.

 

KEY: residential mortgage loan origination

Date of Enactment or Last Substantive Amendment: April 10, 2007

Notice of Continuation: December 13, 2006

Authorizing, and Implemented or Interpreted Law: 61-2c-205(3)]