2006 Utah Code - 61-2c-201 — Licensure required of individuals and entities engaged in the business of residential mortgage loans -- Mortgage officer -- Principal lending manager.
(1) Unless exempt from this chapter under Section 61-2c-105, an individual or entity may not transact the business of residential mortgage loans, as defined in Section 61-2c-102, without obtaining a license under this chapter.
(2) For purposes of this chapter, an individual or entity transacts business in this state if:
(a) (i) the individual or entity engages in an act that constitutes the business of residential mortgage loans; and
(ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state; and
(B) the real property that is the subject of the act described in Subsection (2)(a)(i) is located in this state; or
(b) a representation is made by the individual or entity that the individual or entity transacts the business of residential mortgage loans in this state.
(3) An individual who has an ownership interest in an entity required to be licensed under this chapter is not required to obtain an individual license under this chapter unless the individual transacts the business of residential mortgage loans.
(4) Unless otherwise exempted under this chapter, licensure under this chapter is required of both:
(a) the individual who directly transacts the business of residential mortgage loans; and
(b) if the individual transacts business as an employee or agent of an entity or individual, the entity or individual for whom the employee or agent transacts the business of residential mortgage loans.
(5) (a) On or after May 1, 2006, a license issued under this chapter to an individual who has not obtained a license as a principal lending manager automatically converts to a mortgage officer license.
(b) A mortgage officer license issued pursuant to Subsection (5)(a) shall be placed on inactive status until the holder of the license has submitted to the division the forms required to activate the license with a principal lending manager.
(6) (a) An individual licensed under this chapter may not engage in the business of residential mortgage loans on behalf of more than one entity at the same time.
(b) This Subsection (6) does not restrict the number of:
(i) different lenders an individual or entity may use as a funding source for residential mortgage loans; or
(ii) entities in which an individual may have an ownership interest, regardless of whether the entities are:
(A) licensed under this chapter; or
(B) exempt under Section 61-2c-105.
(7) An individual licensed under this chapter may not transact the business of residential mortgage loans for the following at the same time:
(a) an entity licensed under this chapter; and
(b) an entity that is exempt from licensure under Section 61-2c-105.
(8) On or after May 1, 2006, except as provided under Title 16, Chapter 11, Professional Corporation Act or under Title 48, Chapter 2c, Utah Revised Limited Liability Company Act, a mortgage officer may not receive consideration for transacting the business of residential
mortgage loans from any person or entity except the principal lending manager with whom the
mortgage officer is licensed.
(9) On or after May 1, 2006, a mortgage officer shall conduct all business of residential
mortgage loans:
(a) through the principal lending manager with which the individual is licensed; and
(b) in the business name under which the principal lending manager is authorized by the
division to do business.
(10) (a) (i) Subject to Subsection (10)(a)(ii) and until May 1, 2006, if an individual who
is authorized by this chapter to transact the business of residential mortgage loans as an
individual transacts the business of residential mortgage loans under an assumed business name,
the individual shall:
(A) register the assumed business name with the division; and
(B) furnish to the division proof that the assumed business name has been filed with the
Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
Business Under Assumed Name.
(ii) This Subsection (10)(a) does not apply to an individual who transacts the business of
residential mortgage loans as an employee or agent of another individual or entity.
(iii) If an entity that is authorized by this chapter to transact the business of residential
mortgage loans transacts the business of residential mortgage loans under an assumed business
name, the entity shall:
(A) register the assumed name with the division; and
(B) furnish the division proof that the assumed business name has been filed with the
Division of Corporations and Commercial Code pursuant to Title 42, Chapter 2, Conducting
Business Under Assumed Name.
(b) The division may charge a fee established in accordance with Section 63-38-3.2 for
registering an assumed name pursuant to this Subsection (10).
(11) (a) A licensee whose license is in inactive status may not transact the business of
residential mortgage loans.
(b) On or after May 1, 2006, a mortgage officer whose license has been placed in inactive
status may not transact the business of residential mortgage loans until the mortgage officer has
licensed with a principal lending manager by following the procedures established by the division
by rule made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
including submission of all required forms and payment of all required activation fees.
(12) (a) On or after May 3, 2004 and before May 1, 2006, if a licensed entity terminates
its control person, or if the control person of a licensed entity resigns, dies, or becomes unable to
act as control person due to disability, the entity shall cease all business of residential mortgage
loans until the entity has submitted all forms and fees to the division that are required to affiliate
another control person with the licensed entity.
(b) On or after May 1, 2006, if a licensed entity terminates its principal lending manager,
or if the principal lending manager of a licensed entity resigns, dies, or becomes unable to act as
a principal lending manager due to disability, the entity may not transact the business of
residential mortgage loans until the entity has submitted all forms and fees to the division that are
required to affiliate another principal lending manager with the entity.
Amended by Chapter 199, 2005 General Session
