Affiliation: means that a mortgage loan originator is associated with a principal lending manager in accordance with Section 61-2c-209. See Utah Code 61-2c-102
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
Control person: means an individual identified by an entity registered with the nationwide database as being an individual directing the management or policies of the entity. See Utah Code 61-2c-102
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Lending manager: means an individual licensed as a lending manager under Section 61-2c-206 to transact the business of residential mortgage loans. 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
Mortgage loan originator: means an individual who, for compensation or in expectation of compensation:
(A)
(I)
takes a residential mortgage loan application;
(II)
offers or negotiates terms of a residential mortgage loan for the purpose of:
(Aa)
a purchase;
(Bb)
a refinance;
(Cc)
a loan modification assistance; or
(Dd)
a foreclosure rescue; or
(III)
directly or indirectly solicits a residential mortgage loan for another person; and
(B)
is licensed as a mortgage loan originator in accordance with this chapter. See Utah Code 61-2c-102
licensed as a lending manager under Section 61-2c-206; and
(ii)
identified in the nationwide database by the individual's sponsoring entity as the entity's principal lending manager. See Utah Code 61-2c-102
Residential mortgage loan: means an extension of credit, if:
(i)
the loan or extension of credit is secured by a:
(A)
mortgage;
(B)
deed of trust; or
(C)
consensual security interest; and
(ii)
the mortgage, deed of trust, or consensual security interest described in Subsection (1)(oo)(i):
(A)
is on a dwelling located in the state; and
(B)
is created with the consent of the owner of the residential real property. See Utah Code 61-2c-102
Sponsorship: means an association in accordance with Section 61-2c-209 between an individual licensed under this chapter and an entity licensed under this chapter. See Utah Code 61-2c-102
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)
The division may not license an individual, and an individual licensed under this chapter may not conduct the business of residential mortgage loans unless:
(i)
if licensed as a mortgage loan originator, the individual:
(A)
is sponsored by an entity licensed under this chapter; and
(B)
is affiliated with the sponsoring entity’s principal lending manager; or
(ii)
if licensed as a lending manager, the individual is sponsored by an entity licensed under this chapter.
(b)
The division may not license an entity and an entity licensed under this chapter may not conduct the business of residential mortgage loans unless the entity:
(i)
conducts the entity’s business of residential mortgage loans from a location within the United States;
(ii)
sponsors a principal lending manager;
(iii)
identifies at least one control person for the entity; and
(iv)
provides a list of the mortgage loan originators sponsored by the entity.
(2)
(a)
A mortgage loan originator‘s license automatically becomes inactive the day on which:
(i)
the mortgage loan originator is not sponsored by an entity licensed under this chapter;
(ii)
the license of the entity with which the mortgage loan originator is sponsored becomes inactive or terminates;
(iii)
the mortgage loan originator is not affiliated with a principal lending manager; or
(iv)
the license of the principal lending manager with whom the mortgage loan originator is affiliated becomes inactive or terminates.
(b)
A lending manager’s license automatically becomes inactive the day on which:
(i)
the lending manager is not sponsored by an entity licensed under this chapter; or
(ii)
the license of the entity with which the lending manager is sponsored becomes inactive or terminates.
(c)
An entity licensed under this chapter automatically becomes inactive the day on which the entity’s sponsorship with the entity’s principal lending manager terminates.
(3)
(a)
A person whose license is inactive may not transact the business of residential mortgage loans.
(b)
To activate an inactive mortgage loan originator license, an individual shall:
(i)
provide evidence that the individual:
(A)
is sponsored by an entity that holds an active license under this chapter; and
(B)
is affiliated with a principal lending manager who holds an active license under this chapter; and
(ii)
pay a fee to the division set in accordance with Section 63J-1-504.
(c)
To activate an inactive lending manager license, an individual shall:
(i)
provide evidence that the individual is sponsored by an entity that holds an active license under this chapter; and
(ii)
pay a fee to the division set in accordance with Section 63J-1-504.
(d)
To activate an inactive license held by an entity, an entity shall:
(i)
provide evidence of the entity’s sponsorship of a principal lending manager; and
(ii)
pay a fee to the division set in accordance with Section 63J-1-504.
(4)
(a)
A mortgage loan originator shall conduct the business of residential mortgage loans only:
(i)
through the entity by which the individual is sponsored; and
(ii)
in the business name under which the sponsoring entity’s principal lending manager is authorized by the division to do business.
(b)
An individual licensed under this chapter may not:
(i)
engage in the business of residential mortgage loans on behalf of more than one entity at the same time;
(ii)
be sponsored by more than one entity at the same time;
(iii)
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; or
(iv)
if the individual is a mortgage loan originator, receive consideration for transacting the business of residential mortgage loans from any person except the principal lending manager of the mortgage loan originator’s sponsoring entity.
(c)
This Subsection (4) does not restrict the number of:
(i)
different lenders a person may use as a funding source for a residential mortgage loan; or
(ii)
entities in which an individual may have an ownership interest, regardless of whether the entities are:
