DAR File No. 27943

Commerce, Real Estate

R162-202

Initial Application

NOTICE OF PROPOSED RULE

DAR File No.: 27943
Filed: 06/01/2005, 08:22
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The existing rule is corrected to harmonize its provisions with the reciprocal licensing process mandated by statute.

Summary of the rule or change:

If an applicant for licensing by reciprocity has taken prelicensing education to become licensed in the home jurisdiction, the rule will not require duplication of that education in Utah.

State statutory or constitutional authorization for this rule:

Subsection 61-2c-103(3)(a)(i)

Anticipated cost or savings to:

the state budget:

None--The requirements for obtaining a mortgage officer license by reciprocity do not impact the State budget.

local governments:

None--Local governments do not employ mortgage officers, and therefore the requirements for obtaining a mortgage officer license by reciprocity do not impact local governments.

other persons:

There is no anticipated cost to other persons. Applicants for a Utah mortgage officer license by reciprocity will save the cost of taking Utah's prelicensing education if they have taken prelicensing education in their home states.

Compliance costs for affected persons:

The only persons affected by this rule change are applicants for a mortgage officer license by reciprocity. Those applicants would potentially save money, not incur compliance costs.

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

This amendment corrects the rule regarding reciprocal licenses by clarifying that prelicensing education is not required if a person or entity otherwise meets the reciprocal licensing requirements. There appears to be no fiscal impact to businesses as a result of this rule filing. Russell C. Skousen, Executive Director

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:

07/15/2005

This rule may become effective on:

07/16/2005

Authorized by:

Dexter Bell, Director

RULE TEXT

R162. Commerce, Real Estate.

R162-202. Initial Application.

R162-202-1. Licensing Examination.

202.1 Except as provided in Subsection 202-8, [E]effective January 1, 2004, an individual applying for an initial license is required to have passed the licensing examination approved by the commission before making application to the division for a license.

202.1.1 All examination results are valid for 90 days after the date of the examination. If the applicant does not submit an application for licensure within 90 days after successful completion of the examination, the examination results shall lapse and the applicant shall be required to retake and successfully pass the examination again in order to apply for a license.

R162-202-7. Registration of Assumed Business Name.

202.7.1 An individual or entity licensed to engage in the business of residential mortgage loans who intends to conduct business under an assumed business name instead of the individual's own name shall register the assumed business name with the Division.

202.7.2 To register an assumed business name, [an individual]the applicant shall pay the applicable non-refundable fee and submit proof in the form required by the Division of a current filing of that assumed business name with the Division of Corporations and Commercial Code.

202.7.3 Misleading or deceptive business names. The Division shall not register an assumed business name if there is a substantial likelihood that the public will be misled by the name into thinking that they are not dealing with an individual or entity engaged in the residential mortgage loan business.

R162-202-8. Reciprocal Licenses.

202.8.1 An applicant who is a legal resident of a state with which the Division has entered into a written reciprocity agreement and who applies for a Utah license shall submit to the Division:

(a) An application for a reciprocal license on the form required by the Division;

(b) All applicable licensing fees and the Residential Mortgage Loan Education, Research, and Recovery Fund fee;

(c) An official license history from the licensing agency in the applicant's state of legal residence containing the dates of the applicant's licensure and any complaint or disciplinary history; and

(d) The information required by Subsections 202.2.1 through [202.2.11]202.2.9.

202.8.2 An applicant who is a legal resident of a state with which the Division has not entered into a written reciprocity agreement and who applies for a Utah license shall submit to the Division:

(a) An application for a reciprocal license on the form required by the Division;

(b) All applicable licensing fees and the Residential Mortgage Loan Education, Research, and Recovery Fund fee;

(c) A signed, notarized affidavit attesting that the applicant has at least five years experience in the business of residential mortgage loans;

(d) An official license history from the licensing agency in the applicant's state of legal residence, and any other state(s)in which the experience referred to in Subsection 202.8.2(c) was obtained, that includes the dates of the applicant's licensure and any complaint or disciplinary history; and

(e) A copy of the licensing statute or rules from any jurisdiction in which residential mortgage experience is claimed that demonstrate that the jurisdiction's licensing requirements are substantially equivalent to those of Utah; and

(f) Those items required by Subsections 202.2.1 through [202.2.11]202.2.9.

KEY: residential mortgage loan origination

[November 3, 2004]2005

61-2c-103(3)

ADDITIONAL INFORMATION

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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.