Utah Administrative Code

The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

NOTE: For a list of rules that have been made effective since April 1, 2019, please see the codification segue page.

NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.


R343. Financial Institutions, Nondepository Lenders.

Rule R343-5. Mortgage Loan Originator Surety Bond Requirements.

As in effect on April 1, 2019

Table of Contents

R343-5-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 70D-3-205.

(2) This rule applies to mortgage loan originators who are required to license with the department.

(3) This rule establishes surety bond requirements for mortgage loan originator licensees.

R343-5-2. Surety Bond Requirements.

(1) An individual who applies for a mortgage loan originator license must be covered by a surety bond satisfactory to the department in a sum based on the dollar amount of loans originated, as shown below, to reimburse the state for expenses it may incur in connection with any administrative or judicial proceeding against a current or former licensee relating to mortgage lending activity in Utah.

(2) The annual origination volume for each individual residential mortgage loan originator is the basis for determining that individual's required bond amount. Annual origination volume is the sum of the amounts of all loans the individual originated, arranged, booked, brokered, funded, made, or otherwise included in the individual's personal loan production volume during the prior calendar year.

(3) If the annual origination volume for the individual was:

(a) up to $5 million, the required bond amount is $12,500; or

(b) $5 to $15 million, the required bond amount is $25,000; or

(c) over $15 million, the required bond amount is $50,000.

R343-5-3. Business Entity Surety Bond Requirements.

(1) This section does not require business entities to be licensed or bonded, but qualified business entities may elect to provide bond coverage on behalf of mortgage loan originators working exclusively for the entity instead of the individual originator providing a separate surety bond. To be eligible for this option:

(a) A business entity must file an acceptable notification or register with the department in accordance with Chapter 70C, Utah Consumer Credit Code; Chapter 70D, Financial Institution Mortgage Financing Regulation Act; or, other Utah statutes or rules administered by the department, and

(b) the bond must cover the activities of the licensed mortgage loan originator.

(2) The annual residential mortgage loan origination volume for the business entity is the basis for determining an entity's required bond amount. Annual origination volume is the sum of the amounts of all Utah loans the entity originated, arranged, booked, brokered, funded, made, or otherwise included in the entity's loan production volume during the prior calendar year.

(3) If the annual origination volume for the business entity was:

(a) up to $10 million, the required bond amount is $25,000; or

(b) $10 to $30 million, the required bond amount is $50,000; or

(c) over $30 million, the required bond amount is $100,000.

KEY

mortgage

Date of Enactment or Last Substantive Amendment

December 22, 2009

Notice of Continuation

December 4, 2014

Authorizing, Implemented, or Interpreted Law

70D-3-205


Additional Information

Contact

For questions regarding the content or application of rules under Title R343, please contact the promulgating agency (Financial Institutions, Nondepository Lenders). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.