DAR File No. 27129

Commerce, Real Estate

R162-201

Residential Mortgage Definitions

NOTICE OF PROPOSED RULE

DAR File No.: 27129
Filed: 04/30/2004, 08:29
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

In order to administer the exemptions in the Utah Residential Mortgage Practices Act, it is necessary to define the word "control."

Summary of the rule or change:

Control is defined as the power to directly or indirectly exercise a controlling influence over an entity, vote 20% or more of any class of voting securities of an entity by an individual, or vote more than 5% of any class of voting securities of an entity by another entity.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)

Anticipated cost or savings to:

the state budget:

None--The definition of "control" for the purposes of the Utah Residential Mortgage Practices Act involves neither cost nor savings to the State budget.

local governments:

None--Local government is not affected by the definition of "control" as applied to the Utah Residential Mortgage Practices Act.

other persons:

The only other persons who would be affected by the definition of "control" as applied to the Utah Residential Mortgage Practices Act are those mortgage lenders who would not be required to license with the Division of Real Estate if the term "affiliate" in Subsection 61-2c-102(1) is affected by adopting the proposed definition of "control".

Compliance costs for affected persons:

A lesser number of entities may be required to license with the Division of Real Estate as a result of the definition of the word "control" and would thereby save licensing fees.

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

This rule filing adopts a definition of the term "control" as that term is used in the term "affiliate" in Subsection 61-2c-102(1). This definition codifies existing practice. Therefore, there appears to be no fiscal impact to businesses as a result of this rule filing.

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

Direct questions regarding this rule to:

Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@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:

06/14/2004

This rule may become effective on:

06/15/2004

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-201. Residential Mortgage Definitions.

R162-201-1. Residential Mortgage Definitions.

As used in Section 61-2c-102(1) of the Utah Residential Mortgage Practices Act, "control" is defined as the power to directly or indirectly:

(a) direct or exercise a controlling influence over:

(i) the management or policies of an entity;

(ii) the election of a majority of the directors,

officers, managers, or managing partners of an entity;

(b) vote 20% or more of any class of voting securities of

an entity by an individual; or

(c) vote more than 5% of any class of voting securities of

an entity by another entity.

KEY: residential mortgage loan origination

2004

61-2c-103(3)

ADDITIONAL INFORMATION

PLEASE NOTE:

• Text to be deleted is struck through and surrounded by brackets (e.g., [example]). Text to be added is underlined (e.g., example). Some browsers may not depict some or any of these attributes on the screen or when the document is printed.
• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Shelley Wismer at the above address, by phone at 801-530-6761, by FAX at 801-530-6749, or by Internet E-mail at swismer@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.