File No. 33378
This rule was published in the March 1, 2010, issue (Vol. 2010, No. 5) of the Utah State Bulletin.
Commerce, Real Estate
Notice of Proposed Rule
DAR File No.: 33378
Filed: 02/11/2010 09:44:09 AM
Purpose of the rule or reason for the change:
Rule R162-207 is repealed in light of the Division's proposed new Rule R162-2c, which updates the mortgage license renewal procedures to comply with the nationwide database.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Rule R162-207 is repealed in its entirety.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 license renewal procedures are included in the rule analysis for proposed new Rule R162-2c.
Local governments are not required to license or, therefore, to renew with the division. Repealing this rule governing the renewal process will have no fiscal impact to local governments.
Repealing this rule relieves small businesses from having to comply with it. The costs to small businesses of having to comply with the new license renewal procedures 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 license renewal procedures 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 containing the substance of these provisions is also proposed by the Division.
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
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 firstname.lastname@example.org
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:
This rule may become effective on:
Deanna Sabey, Director
R162. Commerce, Real Estate.
R162-207. License Renewal. R162-207-1. License Renewal. 207.1 Renewal period. Licenses issued under the Utah
Residential Mortgage Practices Act are valid for a period of two
R162-207-2. Renewal Process. 207.2.1 Renewal Notice. A license renewal notice shall be
sent by the Division to the licensee at the mailing address shown
on Division records. The renewal notice shall specify the
requirements for renewal and shall require that the licensee
document or certify that the requirements have been met. The
licensee must apply to renew and pay all applicable fees on or
before the expiration date shown on the notice.
207.2.2 Application for Renewal. All applications for
renewal must be made in the form required by the division and
shall include the following:
(a) A licensure statement in the form required by the
(b) The renewal fee and the Residential Mortgage Loan
Education, Research, and Recovery Fund fee;
(c) If the applicant is an individual, proof through means
approved by the division of having completed during the two years
prior to application the continuing education required by the
commission under Section 61-2c-104;
(d) The current home street address and home telephone
number of any individual applicant and the current physical
street address of any entity applicant;
(e) A current mailing address for the applicant;
(f) Answers to a "Licensing Questionnaire"
supplying information about events that occurred in the preceding
two years related to mortgage licensure in other jurisdictions,
license sanctions or surrenders, pending disciplinary actions,
pending investigations, criminal convictions or pleas, and/or
civil judgments or findings based on fraud, misrepresentation, or
(g) If, at the time of application for renewal, an
individual applicant, or the principal lending manager, 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, is
charged with, or since the last renewal has been convicted of or
entered a plea to, any felony or misdemeanor, the following
information must be provided on each conviction, plea, or charge:
the charging document, the case docket, and the judgment and
sentencing document, if applicable; and
(h) If, in the two years preceding application for renewal,
an individual or entity applicant or principal lending manager of
an entity applicant has had a license or registration suspended,
revoked, surrendered, canceled or denied 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 applicant must provide the documents stating the
sanction taken against the license or registration and the
207.2.3 Continuing Education Requirement. All active
licensees are required to have completed their continuing
education requirement prior to applying to renew and by the 15th
day of the month of expiration.
126.96.36.199 Documentation of Continuing Education. Any
licensee who renews online and certifies that the required
continuing education has been completed shall maintain the
original course completion certificates supporting that
certification for two years following renewal. The licensee shall
produce those certificates for audit upon request by the
188.8.131.52 Out of State Courses. Continuing education credit
will be given for a course taken in another state provided the
course has been certified for continuing education purposes by
the licensing agency in the other state and the subject matter of
the course relates to protection of the public, but not to
state-specific licensing laws. Evidence must be retained by the
licensee, and provided to the Division upon request, that the
course was certified by the other state at the time the course
184.108.40.206 Continuing Education Requirement upon activation
of license. As a condition for the activation of an inactive
license that was on inactive status at the time of the
licensee's most recent renewal, the licensee shall supply the
Division with proof of successful completion of the number of
hours of continuing education that would have been required to
renew had the license 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.
207.2.4 Late Renewal. If all required renewal forms, fees,
and documentation have not been received or postmarked by the
expiration date of the license, the license shall expire. When an
active license expires, an individual licensee's affiliation
with a licensed entity automatically terminates.
220.127.116.11 A licensee may apply to renew an expired license
within thirty days after the expiration date of the license by
completing all of the renewal requirements, including the
continuing education requirement, and paying a non-refundable
18.104.22.168 After the thirty day period, and until six months
after the expiration date of the license, a licensee may apply to
reinstate a license by completing all of the renewal
requirements, including the continuing education requirement,
paying a non-refundable late fee, and providing proof of
successful completion of 12 hours of continuing education in
addition to that required for a timely renewal on active
R162-207-3. Current Entity Name
Registration. 207.3 An entity submitting an application for renewal must
at the time of application have a name registration with the Utah
Division of Corporations that is current and in good standing.
The division will not process an application for renewal unless
it can verify that the applicant's name registration is
current and in good standing.
R162-207-4. Incomplete Application. 207.4 If an applicant makes a good faith attempt to submit a
completed application for renewal prior to the expiration date of
the applicant's current registration or license, but the
application is incomplete, the Division may grant an extension
for a period not to exceed 30 days to enable the applicant to
provide the missing documents or information necessary to
complete the application.
R162-207-5. Nonrefundable Fees. 207.5 All fees required in conjunction with an application
for renewal are nonrefundable if the applicant fails to complete
an application or if a completed application is denied for
failure to meet the renewal criteria.
R162-207-6. Determining Fitness for
Renewal. 207.6 Qualifications for Renewal. In order to qualify for
renewal, all mortgage officer and principal lending manager
applicants, and all directors, executive officers, and managing
partners of any entity applicant, and anyone who occupies a
position or performs functions similar to a director, executive
officer, manager, or managing partner of any entity applicant,
shall meet the following qualifications. None of these persons
(a) been convicted of, or entered a plea in abeyance to, a
felony; or during the term of the last license or during the
period between license expiration and application to reinstate an
(b) a finding of fraud, misrepresentation or deceit entered
against the applicant, related to activities requiring a mortgage
license, by any court of competent jurisdiction or any government
agency, unless the finding was explicitly considered by the
Division in approving the applicant's initial license or
previous license renewals.
207.6.1 Determining fitness for renewal. In determining
whether an applicant who has not been disqualified by Subsection
207.6 meets the requirements of good moral character, honesty,
integrity, and truthfulness, the commission and the division
shall determine fitness for renewal in accordance with Section
R162-207-7. Applications Filed by Mail. 207.7 The Division will consider a properly completed
application for renewal that has been postmarked on or before the
expiration date shown on the renewal notice to have been timely
R162-207-8. Misrepresentation on an
Application. 207.8 Any misrepresentation in an application for renewal,
regardless of whether the application is filed with the Division
by mail or made online, will be considered a separate violation
of these rules and grounds for disciplinary action against the
R162-207-9. Exemption from Continuing
Education Requirement. 207.9 A licensee may obtain an exemption from the continuing
education requirement of R162-208.1 for a period not to exceed
four years upon a finding by the Division that there is
reasonable cause to grant the exemption.
207.9.1 Exemptions from the continuing education requirement
may be granted for reasons including military service, prolonged
absence from Utah for religious or secular service, and extended
or serious illness.
207.9.2 A licensee seeking an exemption from the continuing
education requirement shall apply to the Division for an
exemption. An application for an exemption from the continuing
education requirement shall set forth with specificity the
reasons why the licensee is unable to complete the continuing
education and the reasons why the licensee believes that an
exemption would be reasonable.
207.9.3 A licensee may not seek a retroactive exemption by
applying for the exemption after the time period for renewal and
reinstatement of a license has already passed.
207.9.4 All applications for an exemption shall be
considered in an informal proceeding before the Division Director
or the Director's designee and shall be based on the
information submitted with the application. No hearing will be
207.9.5 Upon a finding of reasonable cause, the Division
shall grant the exemption from the continuing education
requirement for a specified period of time, not to exceed four
KEY: residential mortgage loan origination Date of Enactment or Last Substantive Amendment: July 30, 2008 Notice of Continuation: November 10, 2008 Authorizing, and Implemented or Interpreted Law: 61-2c-103(3); 61-2c-202(4)(a)(ii)]
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2010/b20100301.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
Text to be deleted is struck through and surrounded by brackets (e.g., [
example]). Text to be added is underlined (e.g., ). Older browsers may not depict some or any of these attributes on the screen or when the document is printed.
For questions regarding the content or application of this rule, please contact Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at email@example.com.