Utah Code 61-2c-201. Licensure required of person engaged in the business of residential mortgage loans

61-2c-201. Licensure required of person engaged in the business of residential mortgage loans.

(1)

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Terms Used In Utah Code 61-2c-201

Business of residential mortgage loans: means for compensation or in the expectation of compensation to:

(A)	engage in an act that makes an individual a mortgage loan originator;

(B)	make or originate a residential mortgage loan;

(C)	directly or indirectly solicit a residential mortgage loan for another;

(D)

unless exempt under Section 61-2c-105 or excluded under Subsection (1)(i)(ii), render services related to the origination of a residential mortgage loan including:

(I)	preparing a loan package;

(II)	communicating with the borrower or lender;

(III)

advising on a loan term;

(IV)	receiving, collecting, or distributing information common for the processing or underwriting of a loan in the mortgage industry; or

(V)	communicating with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan; or

(E)

engage in loan modification assistance. See Utah Code 61-2c-102

Division: means the Division of Real Estate. See Utah Code 61-2c-102

Entity: means :

(i)	a corporation;

(ii)	a limited liability company;

(iii)

a partnership;

(iv)	a company;

(v)	an association;

(vi)	a joint venture;

(vii)

a business trust;

(viii)

a trust; or

(ix)

another organization. See Utah Code 61-2c-102

Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

Mortgage loan: A loan made by a lender to a borrower for the financing of real property. ^{Source: OCC}

Person: means an individual or entity. See Utah Code 61-2c-102

State: means :

(i)	a state, territory, or possession of the United States;

(ii)	the District of Columbia; or

(iii)	the Commonwealth of Puerto Rico. See Utah Code 61-2c-102
(a)	Except as provided in Subsection (1)(b), a person may not transact the business of residential mortgage loans without first obtaining a license under this chapter.

(b)

A person may transact the business of residential mortgage loans without first obtaining a license under this chapter if the person:

(i)	is exempt from this chapter under Section 61-2c-105; or

(ii)	qualifies for temporary authority to act as a mortgage loan originator under Section 61-2c-201.2.

(2)

For purposes of this chapter, a person transacts the business of residential mortgage loans in this state if:

(a)

(i)	the person engages in an act that constitutes the business of residential mortgage loans;

(ii)	the act described in Subsection (2)(a)(i) is directed to or received in this state; and

(iii)

the real property that is the subject of the act described in Subsection (2)(a)(i) is located in this state; or

(b)	the person makes a representation that the person 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)

If an entity that is licensed to transact the business of residential mortgage loans transacts the business of residential mortgage loans under an assumed business name, the entity shall in accordance with rules made by the division:

(i)	register the assumed name under this chapter; and

(ii)	furnish proof that the assumed business name is 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 63J-1-504 for registering an assumed name as described in this Subsection (5).

Amended by Chapter 337, 2019 General Session

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