DAR File No. 27402

Commerce, Real Estate

R162-207

License Renewal

NOTICE OF PROPOSED RULE

DAR File No.: 27402
Filed: 09/02/2004, 03:26
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The proposed changes are made to: 1) harmonize the rule with statutory amendments made by S.B. 178 (2004 General Session); 2) specify the continuing education required on renewal; 3) provide procedures for the exemption of a licensee from the continuing education requirement; and 4) facilitate online renewal of license. (DAR NOTE: S.B. 178 is found at UT L 2004 Ch 297, and was effective 05/03/2004.)

Summary of the rule or change:

The procedures for the sending of a renewal notice by the Division are specified. Provisions detailing the late renewal and reinstatement process are added, as are requirements related to renewal applications filed by mail and those made online. Procedures are added for the exemption of a licensee from the continuing education requirement upon a showing of reasonable cause. Finally, subsection headings are added.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)

Anticipated cost or savings to:

the state budget:

None--The procedures for renewal and reinstatement of mortgage broker licenses have no impact on the State budget.

local governments:

None--Local government is not affected by the procedures for renewal and reinstatement of mortgage broker licenses.

other persons:

None--The only persons who are affected by the procedures for renewal and reinstatement of mortgage broker licenses are the holders of those licenses. Any cost or savings to mortgage brokers from these rule changes would be caused by the licensing statute (Section 61-2c-1, et seq.) itself and not by the rules implementing its procedures.

Compliance costs for affected persons:

Any cost to mortgage brokers from these rule changes would be caused by the licensing statute (Section 61-2c-1, et seq.) itself and not by the rules implementing its procedures.

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

This rule filing clarifies license renewal and reinstatement procedures and, as required by S.B. 178, also establishes standards for exemptions from the continuing education requirements. These amendments appear to create no fiscal impact to business.

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:

11/01/2004

This rule may become effective on:

11/02/2004

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-207. License Renewal.

R162-207-1. License Renewal.

207.1 Renewal period. Registrations and licenses issued under the Utah Residential Mortgage Practices Act are valid for a period of two years.

207.1.1 Notwithstanding Section 207.1, an individual license shall be inactivated by the division on January 1, 2005 if the holder of that license has not by that date submitted proof to the division of having passed the examination required by Section 61-2c-202(4)(a)(i)(C). The holder of a license that has been inactivated under this section may not engage in the business of residential mortgage loans for which licensure under this chapter is required until the individual has provided to the division any forms required by the division to activate the license, along with proof of having passed the examination required by Section 61-2c-202(4)(a)(i)(C).

R162-207-2. Renewal of Converted Licenses.

207.2 [Renewal of converted licenses. ]If an individual whose existing registration was converted by the division to a license pursuant to R162-202.6 applies to renew after January 1, 2004, but before January 1, 2005, the division shall renew the license without requiring proof that the individual has passed the examination required by Section 61-2c-202(4)(a)(i)(C). The renewed license issued under the authority of this section shall be issued subject to Section 61-2c-202(4)(a)(ii).

R162-207-3. Renewal Process.

[207.3 Renewal process.

]207.3.1 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.

207.3.[1]2 Application for Renewal. All applications for renewal must be made in the form required by the division and shall include the following:

[207.3.1.1](a) A licensure statement in the form required by the division;

[207.3.1.2](b) The renewal fee and the Residential Mortgage Loan Education, Research, and Recovery Fund fee;

[207.3.1.3](c) If the applicant [in]is an individual, proof using forms 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;

[207.3.1.4](d) The current home street address and home telephone number of any individual applicant or control person of an entity applicant;

[207.3.1.5](e) A current mailing address for the applicant;

[207.3.1.6](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 deceit;

[207.3.1.7](g) If, at the time of application for renewal, an individual applicant or a control person of an entity applicant 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

[207.3.1.8](h) If, in the two years preceding application for renewal, an individual or entity applicant or a control person 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 reasons therefore.[; and]

207.3.3 Continuing Education Requirement. All licensees are required to have completed their continuing education requirement prior to applying to renew.

207.3.3.1 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 Division.

207.3.3.2 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 was taken.

207.3.4 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.

207.3.4.1 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 and paying a non-refundable late fee.

207.3.4.2 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, 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.

R162-207-4. Current Entity Name Registration.

207.4 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.

R162-207-5. Incomplete Application.

207.5 [Incomplete Application. ]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.

R162-207-6. Nonrefundable Fees.

207.6 All fees required in conjunction with an application for renewal are nonrefundable and will not be refunded if the applicant fails to complete an application or if a completed application is denied for failure to meet the renewal criteria.

R162-207-7. Determining Fitness for Renewal.

207.7 [Determining Fitness for Renewal. ]The commission and the division shall determine fitness for renewal in accordance with Section 202.5 above.

R162-207-8. Applications Filed by Mail.

207.8 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 filed.

R162-207-9. Misrepresentation on an Application.

207.9 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 licensee.

R162-207-10. Exemption from Continuing Education Requirement.

207.10 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.

207.10.1 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.

207.10.2 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.

207.10.3 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.

207.10.4 All applications for an exemption shall be considered in an informal proceeding before the Division Director or his designee and shall be based on the information submitted with the application. No hearing will be permitted.

207.10.5 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 years.

KEY: residential mortgage loan origination

[February 3, ]2004

61-2c-103(3)

61-2c-202(4)(a)(ii)

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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.