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Utah: Effective 1/1/04, individual applicants [Loan Officers] must pass an approved examination and have met all continuing education requirements during the two years prior to application. 12 hours of Continuing Education are required each year.

LICENSING WITH THE UTAH DIVISION OF REAL ESTATE

Under the Utah Residential Mortgage Practices Act (the "Act")

Who must license?

Any person that transacts the business of residential mortgage loans in Utah must obtain a license from the Division.  ‘Person' means Individuals, and Entities such as LLC's, partnerships, corporations, etc.  This means those who, whether physically located in or out of Utah: 1) make or originate a residential mortgage loan directed to or received in the State of Utah, 2) directly or indirectly solicit, place, or negotiate such a mortgage loan, or 3) render services related to the origination, or funding of such a mortgage loan, including taking applications, obtaining verifications and appraisals, and communicating with the borrower and lender.  Utah Code §61-2c-102.  Every Individual or Entity that does any of the above must be licensed with the Division.  If an Individual transacts mortgage business by or through an Entity, both the Individual and Entity must be licensed.

Exempt persons are federal government agencies, state agencies, employees of those agencies, and depository institutions and their affiliates and employees.  ‘Depository Institutions' are banks, savings and loan associations, credit unions and industrial loan companies.  Entity licensing is for residential mortgage loan Entities that do not fall under the ‘exempt' status.

Note: There is NO exemption for one-time loans or wholesale lenders.

What is required for Entities to license?

The Act requires each Entity to list one person that controls the Entity.  The Division defines the “Control Person” as any individual or company that directly manages or controls the Entity's transaction of the business of residential mortgage loans as such business is directed to or received in the State of Utah .   

What Individuals are required to license?

Each Individual that transacts the business of residential mortgage lending directed to or received in the State of Utah must obtain a license.  You must state on your Individual Application the name under which you transact mortgage business , i.e., any DBA or business name, or the Entity that you represent as an employee or agent.  If you transact mortgage business under two different names, then both names will need to be licensed separately.

What is a “properly completed application?”

For an Entity :  1) Entity Application form with all blanks filled in and boxes appropriately checked, including signature and information for the control person; 2) Certificate of existence from the Utah Division of Corporations showing the Entity is current and in good standing and listing the Entity's officers, or evidence of registration with such Division to do business in Utah;  3) two fingerprint cards for the Control Person – fingerprint cards must contain printed name, signature, date and place of birth, social security number, home address, citizenship, aliases, and personal description information;  4) fingerprint letter of waiver;  5) $200 Entity Application fee, $50 recovery fund fee, and $39 fingerprint processing fee for the Control Person (do not need to be separate checks).

Control Persons that are already licensed as Individuals do not need to submit any further information, fingerprints, or fees, but must be listed on the Entity Application as a Control Person.  Control Persons that transact the business of residential mortgage lending in the State of Utah must, in addition to being listed as a Control Person, obtain a license as an Individual if they haven't already done so.

For an Individual : 1) Individual Application forms (will be generated by the testing service after successful completion of mortgage lender exam), signed, with all blanks filled in and all applicable boxes checked;  2) two fingerprint cards (will be issued by testing service after successful completion of mortgage lender exam);  3) fingerprint letter of waiver (issued by testing service);  4) $200 Individual Application fee, $36 recovery fund fee and $39 fingerprint processing fee (do not need to be separate checks).

If the exam is taken at one of Promissor's Utah test sites, fingerprints will be taken after the successful completion of the mortgage lender exam.  Please see the December 2003 issue of the Mortgage Monitor for detailed information regarding the mortgage lender exam.  If the test is taken outside of Utah , blank fingerprint cards are available through the Division of Real Estate.  Most law enforcement agencies will take your fingerprints for a nominal fee.  If your fingerprint cards are not properly done and are therefore unacceptable to the Bureau of Criminal Identification or the FBI, you will be required to re-submit acceptable fingerprint cards.

If any of the items are missing, your application is incomplete and will not be processed .  Your application will not be effective until the date that all completed required paperwork and all fees are submitted.

What about changes after licensure?

Entities must submit in writing to the Division at the address below notice of changes in name, address, or in Control Person within 10 days after the change.  Individuals must submit notice of any change in their office address or in the name under which they transact mortgage business on the Mortgage Lender Change Card .

What does “Felony or misdemeanor involving moral turpitude mean,” and what if I answer “yes” to one of these questions?

Crimes of moral turpitude are acts that violate accepted moral standards of the community. Some examples of such crimes include, but are not limited to: fraud, forgery, theft, sex crimes, violent crimes against a person, murder, etc.  All felony and misdemeanor convictions within the last five years before applying must be reported.

If you answer “yes” to any of the above questions, you are required to submit a detailed letter of explanation and the court papers related to your answer or underlying offense. Mail or deliver a complete application to Utah Division of Real Estate