2006 Utah Code - 61-2c-202 — Licensure procedures.

     61-2c-202.   Licensure procedures.
     (1) To apply for licensure under this chapter an applicant shall:
     (a) submit to the division a licensure statement that:
     (i) lists any name under which the individual or entity will transact business in this state;
     (ii) lists the address of the principal business location of the applicant;
     (iii) on or after May 3, 2004 and before May 1, 2006, if the applicant is an entity:
     (A) lists the control person of the applicant; and
     (B) contains the signature of the control person;
     (iv) on or after May 1, 2006, if the applicant is an entity:
     (A) lists the principal lending manager of the entity; and
     (B) contains the signature of the principal lending manager;
     (v) demonstrates that the applicant meets the qualifications listed in Section 61-2c-203;
     (vi) if the applicant is an entity, lists:
     (A) all jurisdictions in which the entity is registered, licensed, or otherwise regulated in the business of residential mortgage loans; and
     (B) the history of any disciplinary action or adverse administrative action taken against the entity by any regulatory agency within the ten years preceding the application; and
     (vii) includes any information required by the division by rule;
     (b) pay to the division:
     (i) an application fee established by the division in accordance with Section 63-38-3.2; and
     (ii) the reasonable expenses incurred in processing the application for licensure including the costs incurred by the division under Subsection (4); and
     (c) comply with Subsection (4).
     (2) (a) The division shall issue a license to an applicant if the division, with the concurrence of the commission, finds that the applicant:
     (i) meets the qualifications of Section 61-2c-203; and
     (ii) complies with this section.
     (b) The commission may delegate to the division the authority to:
     (i) review any class or category of application for initial or renewed licenses;
     (ii) determine whether an applicant meets the licensing criteria in Section 61-2c-203;
     (iii) conduct any necessary hearing on an application; and
     (iv) approve or deny a license application without concurrence by the commission.
     (c) If the commission delegates to the division the authority to approve or deny an application without concurrence by the commission and the division denies an application for licensure, the applicant who is denied licensure may petition the commission for review of the denial.
     (d) An applicant who is denied licensure under this Subsection (2)(b) may seek agency review by the executive director only after the commission has reviewed the division's denial of the applicant's application.
     (3) Subject to Subsection (2)(d) and in accordance with Title 63, Chapter 46b, Administrative Procedures Act, an applicant who is denied licensure under this chapter may submit a request for agency review to the executive director within 30 days following the issuance of the commission order denying the licensure.
     (4) (a) (i) An individual applying for a license under this chapter and any control person

of the applicant shall:
     (A) submit a fingerprint card in a form acceptable to the division at the time the licensure statement is filed;
     (B) consent to a fingerprint background check by:
     (I) the Utah Bureau of Criminal Identification; and
     (II) the Federal Bureau of Investigation;
     (C) on or after January 1, 2005, provide proof using methods approved by the division of having successfully completed 20 hours of approved prelicensing education required by the commission under Section 61-2c-104 before taking the examination required by Subsection (4)(a)(i)(D); and
     (D) provide proof using methods approved by the division of having successfully passed an examination approved by the commission under Section 61-2c-104.
     (ii) Notwithstanding Subsections (4)(a)(i)(C) and (4)(a)(i)(D), an individual meeting the conditions of Subsection (4)(a)(iii) may engage in the business of residential mortgage loans until January 1, 2005 without having:
     (A) completed the prelicensing education described in Subsection (4)(a)(i)(C); and
     (B) passed the examination described in Subsection (4)(a)(i)(D).
     (iii) Subsection (4)(a)(ii) applies to an individual:
     (A) who was registered with the division under this chapter prior to January 1, 2004;
     (B) whose registration was converted to a license under Section 61-2c-201.1; and
     (C) whose converted license either:
     (I) does not expire before January 1, 2005; or
     (II) is renewed prior to January 1, 2005.
     (b) The division shall request the Department of Public Safety to complete a Federal Bureau of Investigation criminal background check for each applicant and each control person of an applicant through a national criminal history system.
     (c) The applicant shall pay the cost of:
     (i) the fingerprinting required by this section; and
     (ii) the background check required by this section.
     (d) (i) A license under this chapter is conditional pending completion of the criminal background check required by this Subsection (4).
     (ii) If a criminal background check discloses that an applicant or an applicant's control person failed to accurately disclose a criminal history, the license shall be immediately and automatically revoked.
     (iii) An individual or entity whose conditional license is revoked under Subsection (4)(d)(ii) may appeal the revocation in a hearing conducted by the commission:
     (A) after the revocation; and
     (B) in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
     (iv) The commission may delegate to the division or an administrative law judge the authority to conduct a hearing described in Subsection (4)(d)(iii).
     (v) Relief from a revocation may be granted only if:
     (A) the criminal history upon which the division based the revocation:
     (I) did not occur; or
     (II) is the criminal history of another person;
     (B) (I) the revocation is based on a failure to accurately disclose a criminal history; and

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     (II) the applicant had a reasonable good faith belief at the time of application that there was no criminal history to be disclosed; or
     (C) the division failed to follow the prescribed procedure for the revocation.
     (e) If a revocation is upheld after a hearing described in Subsection (4)(d)(iii), the person may not apply for a new license for a period of 12 months or longer not to exceed five years after the revocation, as determined by the presiding officer.
     (f) The funds paid by an applicant for the cost of the background check shall be nonlapsing.
     (g) The commission may delegate to the division the authority to make a decision on whether relief from a revocation should be granted.

Amended by Chapter 199, 2005 General Session