Term
| Under Utah law, can a lender or broker accept any fee or deposit from an applicant for a mortgage loan? Conditions? |
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Definition
No, cannot accept fee/deposit unless:
-there's a written statement signed by applicant, stating whether fee is refundable
-conditions for refund are described in statement |
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Term
| What are the functions of the Division of Real Estate? |
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Definition
-Create consumer mtg. ed. materials
-Act on complaints
-Make studies to support its actions
-Make results of studies known to public
-Visit any entity licensed for Utah, regardless of its location
-Employ any people to support itself |
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Term
| What act allows the Division of Real Estate to make rules for itself? |
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Definition
| Utah Administrative Rulemaking Act, Title 63, Chapter 46a |
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Term
| Under the Utah Administrative Rulemaking Act, what kind of rules can the Division make? |
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Definition
-Licensure procedures for individuals and entities
-Establishment of a branch office by an entity
-Proper handling of funds received by licensees
-Standards of conduct for licensees
-Record keeping requirements for licensees |
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Term
| What about names/addresses of licensees? |
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Definition
-Division will keep public record of all licensees
-Division may charge a fee for providing this public record |
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Term
| What about education req's for licensees? |
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Definition
Division does the following
-Certify education providers for prelicensing and cont. ed.
-Makes public a list of these providers
-Makes rules for certification criteria
-Makes standards of conduct for providers |
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Term
| What does the Residential Mortgage Regulatory Commission consist of? Who chooses them? |
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Definition
-Chosen by the executive director of the Division
-3 members with 3 yrs. exp. with res. loans, who are currently Utah licensed
-1 member of general public
-Commissioner of Dept of Financial Institutions or the commissioner's designee. |
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Term
| What are the terms of the Residential Mortgage Regulatory Commission? |
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Definition
-4 year term, ending 6/30
-terms of members are staggered, so that approx. 2 members must be elected every 2 yrs |
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Term
| If a vacancy in the Residential Mortgage Regulatory Commission happens, what must occur? |
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Definition
| Replacement takes over unexpired term. |
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Term
| How does the Residential Mortgage Regulatory Commission select a chair? |
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Definition
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Term
| How often does the Residential Mortgage Regulatory Commission meet? |
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Definition
-At least quarterly
-At request of Director of the Division of RE
-At request of chair
-At written request of 3 or more Commission members |
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Term
| What constitutes a quorum for the Residential Mortgage Regulatory Commission? |
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Definition
| 3 members. An action of 3 members represents an action of the Commission. |
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Term
| What about pay for gov't vs non-gov't employees? |
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Definition
-Non-gov't employees receive no pay, but can receive per diem and expenses.
-Non-gov't employees can decline to be paid
-State gov't employees who aren't salaried by their agency can receive per diem and expenses, can also be declined
-Rates are est. by Div. of Finance |
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Term
| What does the Residential Mortgage Regulatory Commission do? |
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Definition
-Concur in licensure of individuals & entities
-Take disciplinary action with concurrence of the Director
-Advise the Division concerning adm. & enforcement of this chapter
-Determine req's of exam for lenders & lending mgrs,
-Cont Ed hrs and subj. req's
-prelicensing ed req's |
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Term
| How can the Commission approve cont. ed and exam req's? |
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Definition
| A committee may make recommendations on these things. |
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Term
| What can the Commission do about exempting license requirements for licensees? |
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Definition
Under Utah Administrative Rulemaking Act, they can:
-exempt a licensee for no more than 4 years, and upon reasonable cause
-make rules on when a licensee is can be exempted for these terms |
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Term
| Who is exempt from "The Act"? |
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Definition
-Fed. & state gov't
-Fannie Mae, Freddie Mac, etc.
-Utah Housing Corp
-a person who loans his/her own money, secured by real property, but doesn't make a business of this
-non-profit exempt from fed taxes, that promotes econ. dev.
-court appointed fiduciary
-atty, if biz doesn't have to do w/ R.E. loans |
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Term
| If an exempt attorney is found in violation of Prohibited Contact, who punishes him/her? |
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Definition
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Term
| When the Division asks for a location, what must it be? |
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Definition
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Term
| After 1/1/06, a licensed person who hasn't gotten a principal lending mgr license becomes what? |
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Definition
| Converts to a mortgage officer license. |
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Term
| What happened to licensees who haven't submitted forms to activate license with PLM? |
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Definition
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Term
| Can a licensee do loans on behalf of more than one entity at the same time? |
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Definition
| No. However, licensee may use lenders as funding source. |
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Term
| Is there a restriction for the number of lenders the licensee may have an ownership interest in? |
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Definition
| No. Only restricted on doing loans on behalf of more than one company. |
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Term
| If a licensee, who is licensed to do business by himself, operates under an assumed business name, what must he/she do? |
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Definition
-Register the assumed business name with the Division (Division may charge for this)
-Give proof that the name has been filed with the Division of Corporations and Commercial Code |
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Term
| What if a licensed entity's control person leaves/dies? Dates? |
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Definition
| Between 5/3/04 and 1/1/06, all work must cease until the entity submits all forms & fees to register the replacement. |
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Term
| If the PLM leaves the entity, what happens? Dates? |
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Definition
| After 1/1/06, if the entity terminates the PLM, no business can happen until he/she is replaced. |
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Term
| When applying for license, what must be on the app for an individual? What else must he/she do? |
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Definition
-Name (indiv. or entity)
-Address
-demonstrate completeness of qualifications
-pay app fee + processing expense
-fingerprints
-background check by FBI and Utah Bureau of Criminal Identification
-demonstrate 20 hrs of classroom study
-pass exam |
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Term
| When applying for license, what must entities do? |
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Definition
-Between 5/3/04 and 1/1/06, entities must list control person with signature
-On or after 1/1/06, entities must list the PLM with signature
-List all jurisdictions
-List any disciplinary actions against entity up to 10 years prior |
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Term
| What can an applicant do if he/she is denied licensure? |
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Definition
| May submit request for agency review to the executive director within 30 days of denial order |
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Term
| What if license is revoked due to uncovering something in the criminal investigation that was not disclosed? Can it be reversed? |
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Definition
-Applicant may appeal for reversal
-To reverse decision, history must be that of another person's, or didn't happen
-Student was unaware of history
-Student didn't accurately disclose history
-division didn't follow prescribed procedure for revocation |
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Term
| What about convictions etc? |
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Definition
For license:
-Must not have been convicted of moral turptitude within 5 years
-Must not have had other licenses revoked on moral turptitude
-Must not have been barred by SEC, NASD, NYSE within 5 years
-Must not have any injunctions against him/her relating to fraud or mtg business |
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Term
| For an entity to be licensed, who must not have convictions afore mentioned? |
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Definition
-director
-executive officer
-manager or managing partner
-Person operating similarly to the above 3
-control person (prior to 1/1/06)
-PLM (on or after 1/1/06) |
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Term
| If a person does have convictions afore mentioned, can he/she get licensed? How? |
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Definition
| If he/she can present evidence that he/she is honest, has integrity, etc, and is competent. |
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Term
| How long is a license good for? |
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Definition
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Term
| How much can the 2-year window be changed, to maintain the Division's renewal schedule? |
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Definition
| up to 1 year in either direction. |
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Term
| How does an active licensee renew? |
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Definition
-File licensure statement as required
-pay fee
-proof of C.E. |
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Term
| An individual or entity licensee has 10 days to report what changes, by changing the licensure statement on file? |
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Definition
-Entity and individual: change in location
-Individual: name under which he/she transacts business
-5/3/04-1/1/06: Change in control person
-On or after 1/1/06: change in PLM |
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Term
| A licensee must send a signed statement within 10 days if what changes occur? |
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Definition
-Conviction of any offense
-Plea in abeyance of any offense
-Resolving charges in a way that puts the charges in suspense
-Filing bankruptcy
-Other professional license revoked/suspended/cancelled etc
-cease and desist order based on mtg business, or fraud |
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Term
| How long does licensee have to get license reinstated, if it expires? Conditions? |
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Definition
| 30 days. Must pay renewal & late fees, show proof of C.E. if applicable |
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Term
| What if the license is expired up to 6 months? After 6 months? |
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Definition
All conditions for expiring after 30 days, plus 12 add'l C.E. hrs.
After 6 months, must do entire process again |
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Term
| What are the req's for becoming a PLM? |
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Definition
-all req's of licensee
-40 hrs classroom, not 20
-pass PLM exam
-3 yrs as mtg. officer |
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Term
| How can you reciprocate into Utah? |
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Definition
-the other state must have similar licensing laws
-similar exam
-licensee hasn't had disciplinary action or charges |
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Term
| How can you reciprocate into Utah without reciprocity agreement? |
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Definition
-licensee submits affidavit showing 5 yrs exp
-req's equivalent to Utah
-provide any other info |
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Term
| After 1/1/06, if a PLM's license is revoked, what happens to licensees under him/her? |
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Definition
| Placed on inactive status |
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Term
| If licensee is on inactive status, how does he/she reactivate? |
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Definition
-turn in activation form
-pay activation fee
-get caught up on C.E. as if he/she had been active |
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