Title 61 Securities Division - Real Estate Division Chapter 2c Utah Residential Mortgage Practices and Licensing Act Section 102 Definitions.
61-2c-102.Definitions.
(1) As used in this chapter:
(a) "Affiliate" means a person who directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with, a specified
individual or entity.
(b) "Applicant" means a person applying for a license under this chapter.
(c) "Approved examination provider" means a person approved by the nationwide
database as an approved test provider.
(d) "Associate lending manager" means an individual who:
(i) qualifies under this chapter as a principal lending manager; and
(ii) works by or on behalf of another principal lending manager in transacting the
business of residential mortgage loans.
(e) "Branch office" means a licensed entity's office:
(i) for the transaction of the business of residential mortgage loans regulated under this
chapter;
(ii) other than the main office of the licensed entity; and
(iii) that operates under the same business name as the licensed entity.
(f) (i) "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 loan originator;
(B) make or originate a residential mortgage loan;
(C) directly or indirectly solicit a residential mortgage loan for another; or
(D) unless excluded under Subsection (1)(f)(ii), render services related to the origination
of a residential mortgage loan including:
(I) preparing a loan package;
(II) communicating with the borrower and lender; or
(III) advising on a loan term.
(ii) "Business of residential mortgage loans" does not include:
(A) if working as an employee under the direction of and subject to the supervision and
instruction of a person licensed under this chapter, the performance of a clerical or support duty
such as:
(I) the receipt, collection, or distribution of information common for the processing or
underwriting of a loan in the mortgage industry other than taking an application;
(II) communicating with a consumer to obtain information necessary for the processing
or underwriting of a residential mortgage loan;
(III) word processing;
(IV) sending correspondence; or
(V) assembling files;
(B) ownership of an entity that engages in the business of residential mortgage loans if
the owner does not personally perform the acts listed in Subsection (1)(f)(i); or
(C) except if an individual will engage in an activity as a loan originator, acting in one or
more of the following capacities:
(I) a loan wholesaler;
(II) an account executive for a loan wholesaler;
(III) a loan underwriter;
(IV) a loan closer; or
(V) funding a loan.
(g) "Certified education provider" means a person who is certified under Section
61-2c-204.1 to provide one or more of the following:
(i) prelicensing education; or
(ii) continuing education.
(h) "Closed-end" means a loan:
(i) with a fixed amount borrowed; and
(ii) that does not permit additional borrowing secured by the same collateral.
(i) "Commission" means the Residential Mortgage Regulatory Commission created in
Section 61-2c-104.
(j) "Compensation" means anything of economic value that is paid, loaned, granted,
given, donated, or transferred to an individual or entity for or in consideration of:
(i) services;
(ii) personal or real property; or
(iii) another thing of value.
(k) "Continuing education" means education taken by an individual licensed under this
chapter in order to meet the education requirements imposed by Sections 61-2c-204.1 and
61-2c-205 to renew a license under this chapter.
(l) "Control," as used in Subsection (1)(a), means the power to directly or indirectly:
(i) direct or exercise a controlling interest over:
(A) the management or policies of an entity; or
(B) the election of a majority of the directors, officers, managers, or managing partners
of an entity;
(ii) vote 20% or more of a class of voting securities of an entity by an individual; or
(iii) vote more than 5% of a class of voting securities of an entity by another entity.
(m) "Depository institution" is as defined in Section 7-1-103.
(n) "Director" means the director of the division.
(o) "Division" means the Division of Real Estate.
(p) "Dwelling" means a residential structure attached to real property that contains one to
four units including any of the following if used as a residence:
(i) a condominium unit;
(ii) a cooperative unit;
(iii) a manufactured home; or
(iv) a house.
(q) "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.
(r) "Executive director" means the executive director of the Department of Commerce.
(s) "Inactive status" means a dormant status into which an unexpired license is placed
when the holder of the license is not currently engaging in the business of residential mortgage
loans.
(t) "Licensee" means a person licensed with the division under this chapter.
(u) "Licensing examination" means the examination required by Section 61-2c-204.1 or
61-2c-206 for an individual to obtain a license under this chapter.
(v) (i) Except as provided in Subsection (1)(v)(ii), "loan originator" means an individual
who for compensation or in expectation of compensation:
(A) takes a residential mortgage loan application; or
(B) offers or negotiates terms of a residential mortgage loan.
(ii) "Loan originator" does not include a person who:
(A) is described in Subsection (1)(v)(i), but who performs exclusively administrative or
clerical tasks as described in Subsection (1)(f)(ii)(A);
(B) unless compensated by a lender, a principal lending manager, or an agent of a lender
or principal lending manager:
(I) only performs real estate brokerage activities; and
(II) is licensed under Chapter 2, Division of Real Estate; and
(C) is solely involved in extension of credit relating to a timeshare plan, as defined in 11
U.S.C. Sec. 101(53D).
(w) "Mortgage officer" means an individual who is licensed with the division to transact
the business of residential mortgage loans through a principal lending manager.
(x) "Nationwide database" means the Nationwide Mortgage Licensing System and
Registry, authorized under Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C. Sec.
5101, et seq.
(y) "Nontraditional mortgage product" means a mortgage product other than a 30-year
fixed rate mortgage.
(z) "Person" means an individual or entity.
(aa) "Prelicensing education" means education taken by an individual seeking to be
licensed under this chapter in order to meet the education requirements imposed by Section
61-2c-204.1 or 61-2c-206 for an individual to obtain a license under this chapter.
(bb) (i) "Principal lending manager" means an individual licensed as a principal lending
manager under Section 61-2c-206 to transact the business of residential mortgage loans.
(ii) An individual licensed as a principal lending manager may transact the business of
residential mortgage loans as a mortgage officer.
(cc) "Record" means information that is:
(i) prepared, owned, received, or retained by a person; and
(ii) (A) inscribed on a tangible medium; or
(B) (I) stored in an electronic or other medium; and
(II) retrievable in perceivable form.
(dd) "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;
(ii) the mortgage, deed of trust, or consensual security interest described in Subsection
(1)(dd)(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; and
(iii) solely for the purposes of defining "loan originator," the extension of credit is
primarily for personal, family, or household use.
(ee) "State" means:
(i) a state, territory, or possession of the United States;
(ii) the District of Columbia; or
(iii) the Commonwealth of Puerto Rico.
(ff) "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.
(2) (a) If a term not defined in this section is defined by rule, the term shall have the
meaning established by the division by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
(b) If a term not defined in this section is not defined by rule, the term shall have the
meaning commonly accepted in the business community.
Amended by Chapter 372, 2009 General Session
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