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5 This act amends the Utah Residential Mortgage Practices Act h and the Mortgage Lending and
5a Servicing Act h . The act adds definitions and
6 replaces certain terms. The act clarifies the division's rulemaking authority. The act deletes
7 expired provisions and simplifies certain others. The act clarifies standards for
8 reinstatement of the registration of an individual or entity whose registration has been
9 revoked. The act makes it discretionary for the director to file suit against violators who do
10 not seek an adjudicative hearing or against whom a permanent cease and desist order has
11 been issued in agency action. h The act clarifies an exemption under the Mortgage Lending and
11a Servicing Act which references the Utah Residential Mortgage Practices Act. h
12 This act affects sections of Utah Code Annotated 1953 as follows:
14 61-2c-102, as last amended by Chapter 347, Laws of Utah 2001
15 61-2c-103, as enacted by Chapter 329, Laws of Utah 2000
16 61-2c-104, as enacted by Chapter 329, Laws of Utah 2000
17 61-2c-105, as enacted by Chapter 329, Laws of Utah 2000
18 61-2c-106, as enacted by Chapter 329, Laws of Utah 2000
19 61-2c-201, as enacted by Chapter 329, Laws of Utah 2000
20 61-2c-202, as enacted by Chapter 329, Laws of Utah 2000
21 61-2c-203, as enacted by Chapter 329, Laws of Utah 2000
22 61-2c-204, as enacted by Chapter 329, Laws of Utah 2000
23 61-2c-205, as enacted by Chapter 329, Laws of Utah 2000
24 61-2c-301, as enacted by Chapter 329, Laws of Utah 2000
25 61-2c-302, as enacted by Chapter 329, Laws of Utah 2000
26 61-2c-401, as enacted by Chapter 329, Laws of Utah 2000
27 61-2c-402, as enacted by Chapter 329, Laws of Utah 2000
28 61-2c-403, as enacted by Chapter 329, Laws of Utah 2000
28a h 70D-1-10, as last amended by Chapter 347, Laws of Utah 2001 h
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 61-2c-102 is amended to read:
31 61-2c-102. Definitions.
32 As used in this chapter:
33 (1) "Affiliate" means [
34 through one or more intermediaries, controls or is controlled by, or is under common control with,
35 a specified [
36 (2) "Applicant" means [
37 this chapter.
38 (3) (a) "Business of residential mortgage loans" means for compensation to:
39 (i) make or originate a residential mortgage loan;
40 (ii) directly or indirectly solicit, process, place, or negotiate a residential mortgage loan for
41 another; or
42 (iii) render services related to the origination, processing, or funding of a residential
43 mortgage loan including:
44 (A) taking applications;
45 (B) obtaining verifications and appraisals; and
46 (C) communicating with the borrower and lender.
47 (b) "Business of residential mortgage loans" does not include the performance of clerical
48 functions such as:
49 (i) gathering information related to a residential mortgage loan on behalf of the prospective
50 borrower or a person registered under this chapter; or
51 (ii) requesting or gathering information, word processing, sending correspondence, or
52 assembling files by an individual who works under the instruction of a person registered under this
54 (4) "Closed-end" means a loan with a fixed amount borrowed and which does not permit
55 additional borrowing secured by the same collateral.
57 in Section 61-2c-104 .
59 given, donated, or transferred to [
60 (a) services;
61 (b) personal or real property; or
62 (c) other thing of value.
64 (a) direct or exercise a controlling influence over:
65 (i) the management or policies of an entity; or
66 (ii) the election of a majority of the directors, officers, managers, or managing partners of
67 an entity;
68 (b) vote 20% or more of any class of voting securities of an entity by an individual; or
69 (c) vote more than 5% of any class of voting securities of an entity by [
71 (8) "Control Person" means any individual or entity which directly manages or controls
72 another entity's transaction of the business of residential mortgage loans secured by Utah
78 one to four units including any of the following if used as a residence:
79 (a) a condominium unit;
80 (b) a cooperative unit;
81 (c) a manufactured home; or
82 (d) a house.
83 (13) "Entity" means any corporation, limited liability company, partnership, company,
84 association, joint venture, business trust, trust, or other organization.
88 (a) prepared, owned, received, or retained by [
89 (b) (i) inscribed on a tangible medium; or
90 (ii) (A) stored in an electronic or other medium; and
91 (B) retrievable in perceivable form.
92 (16) "Registrant" means an individual or entity registered with the division under this
95 extension of credit, if:
96 (a) the loan or extension of credit is secured by a:
97 (i) mortgage;
98 (ii) deed of trust; or
99 (iii) lien interest; and
100 (b) the mortgage, deed of trust, or lien interest described in Subsection [
101 (i) is on a dwelling located in the state; and
102 (ii) created with the consent of the owner of the residential real property.
104 (a) a state, territory, or possession of the United States;
105 (b) the District of Columbia; or
106 (c) the Commonwealth of Puerto Rico.
107 Section 2. Section 61-2c-103 is amended to read:
108 61-2c-103. Powers and duties of the division.
109 (1) The division shall administer this chapter.
110 (2) In addition to any power or duty expressly provided in this chapter, the division may:
111 (a) receive and act on complaints including:
112 (i) taking action designed to obtain voluntary compliance with this chapter; or
113 (ii) commencing administrative or judicial proceedings on the division's own initiative;
114 (b) establish programs for the education of consumers with respect to residential mortgage
116 (c) (i) make studies appropriate to effectuate the purposes and policies of this chapter; and
117 (ii) make the results of the studies described in Subsection (2)(c)(i) available to the public;
119 (d) employ any necessary hearing examiners, investigators, clerks, and other employees
120 and agents.
121 (3) The division shall make rules [
122 of this chapter in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act[
124 (a) registration procedures for individuals and entities required by this chapter to register
125 with the division;
126 (b) proper handling of funds received by registrants;
127 (c) record-keeping requirements by registrants; and
128 (d) standards of conduct for registrants.
129 (4) (a) The division shall make available to the public a list of the names and addresses of
130 all [
131 (b) The division may charge a fee established by the division in accordance with Section
132 63-38-3.2 for obtaining the list described in Subsection (4)(a).
133 Section 3. Section 61-2c-104 is amended to read:
134 61-2c-104. Residential Mortgage Regulatory Commission.
135 (1) There is created within the division the Residential Mortgage Regulatory Commission
136 consisting of:
137 (a) the following members appointed by the executive director with the approval of the
139 (i) two members having at least three years of experience in transacting the business of
140 residential mortgage loans; and
141 (ii) two members from the general public; and
142 (b) the commissioner of the Department of Financial Institutions or the commissioner's
144 (2) (a) Except as required by Subsection (2)(b), the executive director shall appoint each
145 new member or reappointed member subject to appointment by the executive director to a
146 four-year term ending June 30.
147 (b) Notwithstanding the requirements of Subsection (2)(a), the executive director shall,
148 at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
149 commission members are staggered so that approximately half of the commission is appointed
150 every two years.
151 (c) If a vacancy occurs in the membership of the commission for any reason, the
152 replacement shall be appointed for the unexpired term.
153 (3) Members of the commission shall annually select one member to serve as chair.
154 (4) (a) The commission shall meet at least quarterly.
155 (b) The director may call a meeting in addition to the meetings required by Subsection
157 (i) at the discretion of the director;
158 (ii) at the request of the chair of the commission; or
159 (iii) at the written request of three or more commission members.
160 (5) (a) Three members of the commission constitute a quorum for the transaction of
162 (b) The action of a majority of a quorum present is an action of the commission.
163 (6) (a) (i) Members who are not government employees shall receive no compensation or
164 benefits for their services, but may receive per diem and expenses incurred in the performance of
165 the member's official duties at the rates established by the Division of Finance under Sections
166 63A-3-106 and 63A-3-107 .
167 (ii) Members who are not government employees may decline to receive per diem and
168 expenses for their service.
169 (b) (i) State government officer and employee members who do not receive salary, per
170 diem, or expenses from their agency for their service may receive per diem and expenses incurred
171 in the performance of their official duties from the commission at the rates established by the
172 Division of Finance under Sections 63A-3-106 and 63A-3-107 .
173 (ii) State government officer and employee members may decline to receive per diem and
174 expenses for their service.
175 (7) The commission shall:
176 (a) concur in the registration [
177 under this chapter in accordance with Part 2, Registration;
178 (b) take disciplinary action with the concurrence of the director in accordance with Part
179 4, Enforcement; and
180 (c) advise the division concerning matters related to the administration and enforcement
181 of this chapter.
182 Section 4. Section 61-2c-105 is amended to read:
183 61-2c-105. Scope of chapter.
184 (1) (a) This chapter applies to a closed-end residential mortgage loan secured by a first lien
185 or equivalent security interest on a dwelling.
186 (b) This chapter does not apply to a transaction covered by Title 70C, Utah Consumer
187 Credit Code.
188 (2) The following are exempt from this chapter:
189 (a) the federal government;
190 (b) a state;
191 (c) a political subdivision of a state;
192 (d) an agency of or entity created by a governmental entity described in Subsections (2)(a)
193 through (c) including:
194 (i) the Utah Housing Finance Agency created in Title 9, Chapter 4, Part 9, Utah Housing
196 (ii) the Federal National Mortgage Corporation;
197 (iii) the Federal Home Loan Mortgage Corporation;
198 (iv) the Federal Deposit Insurance Corporation;
199 (v) the Resolution Trust Corporation;
200 (vi) the Government National Mortgage Association;
201 (vii) the Federal Housing Administration;
202 (viii) the National Credit Union Administration;
203 (ix) the Farmers Home Administration; and
204 (x) the Department of Veterans Affairs;
205 (e) a depository institution;
206 (f) an affiliate of a depository institution;
207 (g) an employee or agent of an entity described in Subsections (2)(a) through (f) when that
208 person acts on behalf of the entity described in Subsections (2)(a) through (f);
209 (h) [
210 (i) [
211 (A) secured by an interest in real property;
212 (B) with the [
213 (C) for the [
214 (ii) that does not engage in the business of making loans secured by an interest in real
216 (i) [
217 on real property if the [
218 (i) is the seller of real property; and
219 (ii) receives the mortgage, deed of trust, or lien interest on real property as security for a
220 separate money obligation;
221 (j) [
222 on real property if:
223 (i) the [
224 as security for an obligation payable on an installment or deferred payment basis;
225 (ii) the obligation described in Subsection (2)(j)(i) arises from [
226 or entity providing materials or services used in the improvement of the real property that is the
227 subject of the mortgage, deed of trust, or lien interest; and
228 (iii) the mortgage, deed of trust, or lien interest was created without the consent of the
229 owner of the real property that is the subject of the mortgage, deed of trust, or lien interest;
230 (k) a nonprofit corporation that:
231 (i) is exempt from paying federal income taxes;
232 (ii) is certified by the United States Small Business Administration as a small business
233 investment company;
234 (iii) is organized to promote economic development in this state; and
235 (iv) has as its primary activity providing financing for business expansion;
236 (l) a court appointed fiduciary; or
237 (m) an attorney admitted to practice law in this state:
238 (i) if the attorney is not principally engaged in the business of negotiating residential
239 mortgage loans; and
240 (ii) when the attorney renders services in the course of the attorney's practice as an
242 (3) (a) Notwithstanding Subsection (2)(m), an attorney exempt from this chapter may not
243 engage in conduct described in Section 61-2c-301 when transacting business of residential
244 mortgage loans.
245 (b) If an attorney exempt from this chapter violates Subsection (3)(a), the attorney:
246 (i) is not subject to enforcement by the division under Part 4, Enforcement; and
247 (ii) is subject to disciplinary action generally applicable to an attorney admitted to practice
248 law in this state.
249 (c) If the division receives a complaint alleging an attorney exempt from this chapter is in
250 violation of Subsection (3)(a), the division shall forward the complaint to the Utah State Bar for
251 disciplinary action.
252 Section 5. Section 61-2c-106 is amended to read:
253 61-2c-106. Addresses provided the division.
254 (1) In providing an address to the division under this chapter, a physical location or street
255 address shall be provided.
256 (2) [
257 have received any notification that is mailed to the last address furnished to the division by the
258 individual, or by a control person of the entity, registered under this chapter.
259 Section 6. Section 61-2c-201 is amended to read:
260 61-2c-201. Registration required of individuals and entities engaged in the business
261 of residential mortgage loans.
262 (1) [
263 or entity may not transact the business of residential mortgage loans [
266 (2) For purposes of this chapter, [
267 this state if:
268 (a) (i) the [
269 residential mortgage loans; and
270 (ii) (A) the act described in Subsection (2)(a)(i) is directed to or received in this state; [
272 (B) the real property that is the subject of the act described in Subsection (2)(a)(i) is
273 located in this state; or
274 (b) [
275 entity that the individual or entity transacts the business of residential mortgage loans in this state.
276 (3) Unless otherwise exempted under this chapter, registration under this chapter is
277 required of both:
278 (a) the individual who directly transacts the business of residential mortgage loans; and
279 (b) if the individual transacts business as an employee or agent of [
280 entity or individual, the [
281 or agent transacts the business of residential mortgage loans.
291 Section 7. Section 61-2c-202 is amended to read:
292 61-2c-202. Registration procedures.
293 (1) To apply for registration under this chapter [
294 (a) submit to the division a registration statement that:
295 (i) lists any name under which the [
296 this state;
297 (ii) lists the address of the principal business location of the [
298 (iii) if the [
300 (iv) demonstrates to the satisfaction of the division with the concurrence of the
301 commission that the [
302 (v) includes any information required by the division by rule;
303 (b) pay to the division:
304 (i) an application fee established by the division in accordance with Section 63-38-3.2 ; and
305 (ii) the reasonable expenses incurred in processing the application for registration
306 including the costs incurred by the division under Subsection (4);
307 (c) meet the requirements under Section 61-2c-204 for:
308 (i) obtaining a surety bond;
309 (ii) depositing assets; or
310 (iii) providing a letter of credit; and
311 (d) comply with Subsection (4).
312 (2) The division, with the concurrence of the commission, shall grant a registration to [
314 (a) meets the qualifications of Sections 61-2c-203 and 61-2c-204 ; and
315 (b) complies with this section.
316 (3) In accordance with Title 63, Chapter 46b, Administrative Procedures Act, [
317 an applicant who is denied registration under this chapter may submit a request for agency review
318 to the executive director within 30 days following the issuance of the order denying the
320 (4) (a) An individual applying for registration under this chapter [
322 the applicant shall:
323 (i) submit a fingerprint card in a form acceptable to the division at the time the registration
324 statement is filed; and
325 (ii) consent to a fingerprint background check by:
326 (A) the Utah Bureau of Criminal Identification; and
327 (B) the Federal Bureau of Investigation.
328 (b) The division shall request the Department of Public Safety to complete a Federal
329 Bureau of Investigation criminal background check for each [
332 (c) The [
333 (i) the fingerprinting required by this section; and
334 (ii) the background check required by this section.
335 (d) (i) A registration under this chapter is conditional pending completion of the criminal
336 background check required by this Subsection (4).
337 (ii) If a criminal background check discloses that [
338 applicant or an applicant's control person failed to accurately disclose a criminal history, the
339 registration shall be immediately and automatically revoked.
340 (iii) [
341 Subsection (4)(d)(ii) may appeal the revocation in a hearing conducted:
342 (A) after the revocation; and
343 (B) in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
344 Section 8. Section 61-2c-203 is amended to read:
345 61-2c-203. Qualifications for registration.
346 (1) To qualify for registration under this chapter, an individual shall:
347 (a) have good moral character and the competency to transact the business of residential
348 mortgage loans;
349 (b) not have been convicted of a felony or misdemeanor involving moral turpitude in the
350 five years preceding the date the individual applies for registration, except as provided in
351 Subsection (3);
352 (c) not have had a license or registration suspended, revoked, surrendered, canceled, or
353 denied in the five years preceding the date the individual applies for registration, except as
354 provided in Subsection (3), if:
355 (i) the registration or license is issued by this state or another jurisdiction; and
356 (ii) the suspension, revocation, surrender, cancellation, or denial is based on misconduct
357 in a professional capacity that relates to good moral character or the competency to transact the
358 business of residential mortgage loans.
359 (2) [
361 an entity may not have:
362 (a) any of the following individuals in management who fails to meet the requirements of
363 Subsection (1)[
364 (i) a manager or a managing partner;
365 (ii) a director;
366 (iii) an executive officer; or
367 (iv) an individual occupying a position or performing functions similar to those described
368 in Subsections (2)(a)(i) through (iii); and
369 (b) [
379 (3) [
380 entity fails to meet the requirements of Subsection (1)(b) or (c), but otherwise meets the
381 qualifications for registration, and provides evidence satisfactory to the division with the
382 concurrence of the commission that the individual or control person has good moral character and
383 the competency to transact the business of residential mortgage loans, notwithstanding
385 (1)(b) or (c) the division may permit [
386 this chapter.
397 Section 9. Section 61-2c-204 is amended to read:
398 61-2c-204. Requirements for bonding, letter of credit, or deposit of assets.
399 (1) If an applicant is an individual, the applicant shall:
400 (a) file with the division a surety bond:
401 (i) that meets the requirements of Subsection (3); and
402 (ii) in the amount not less than $10,000; or
403 (b) demonstrate to the satisfaction of the division that:
404 (i) the applicant is an employee or agent of [
405 chapter; and
406 (ii) the acts of the applicant are covered by a surety bond filed with the division under
407 Subsection (2) by [
408 employee or agent.
409 (2) If the applicant is [
410 a surety bond:
411 (a) that meets the requirements of Subsection (4); and
412 (b) in an amount not less than $25,000.
413 (3) A surety bond filed under this section shall name as beneficiaries:
414 (a) the state, for payment of costs incurred and charges made in connection with an
415 enforcement action under Part 4, Enforcement, against the applicant including costs and charges
416 relating to an examination or investigation; and
417 (b) after all claims and charges of the state have been paid in full, any person who has a
418 claim against the surety on the bond based on any default or violation of any duty or obligation of
419 the applicant.
420 (4) If an applicant is [
422 (a) comply with Subsection (3); and
423 (b) cover the acts of:
424 (i) the [
425 (ii) any control person [
426 chapter; and
427 (iii) any agent or employee of the [
428 (5) If an individual registered under this chapter does not file a surety bond under this
429 section because at the time of applying for registration that person met the requirements of
430 Subsection (1)(b), the individual shall post a surety bond meeting the requirements of Subsections
431 (1) and (3) by no later than 30 days from the day on which the person is not covered by a surety
432 bond in accordance with Subsection (1)(b).
433 (6) Notwithstanding the other provisions of this section, an applicant can comply with the
434 requirements of this section, if the applicant deposits assets with or provides a letter of credit to
435 the division:
436 (a) in the amounts required for a surety bond; and
437 (b) subject to the same surety conditions of Subsections (3) and (4).
438 Section 10. Section 61-2c-205 is amended to read:
439 61-2c-205. Term of registration -- Renewal -- Reporting of changes.
440 (1) (a) A registration under this chapter is valid for a two-year period.
441 (b) Notwithstanding Subsection (1)(a), the time period of a registration may be extended
442 or shortened by as much as one year to maintain or change a renewal cycle established by rule by
443 the division.
444 (2) To renew a registration, no later than 30 days before the date the registration expires,
446 (a) file a registration statement meeting the requirements of Section 61-2c-202 ; and
447 (b) pay a fee to the division established by the division in accordance with Section
448 63-38-3.2 .
449 (3) (a) [
450 statement filed with the division within ten days of the date on which there is a change in:
451 (i) a name under which the [
452 mortgage loans in this state;
453 (ii) the [
454 (iii) [
456 (iv) any other information that is defined as material by rule made by the division.
457 (b) Failure to notify the division of a change described in Subsection (3)(a) is separate
458 grounds for disciplinary action against [
459 (4) A [
460 by sending the division a signed statement within ten business days of:
461 (a) a conviction of any criminal offense; [
462 (b) filing a personal bankruptcy or bankruptcy of a business that transacts the business of
463 residential mortgage loans[
464 (c) the suspension, revocation, surrender, cancellation, or denial of a professional license
465 or professional registration of the registrant, whether the license or registration is issued by this
466 state or another jurisdiction.
467 Section 11. Section 61-2c-301 is amended to read:
468 61-2c-301. Prohibited conduct -- Violations of the chapter.
469 (1) [
470 loans in this state may not:
471 (a) give or receive compensation or anything of value in exchange for a referral of
472 residential mortgage loan business unless the compensation or thing of value is de minimis as
473 defined by the division;
474 (b) charge a fee in connection with a residential mortgage loan transaction:
475 (i) that is excessive; or
476 (ii) if the [
477 (c) give or receive compensation or anything of value in exchange for a referral of
478 settlement or loan closing services related to a residential mortgage loan transaction;
479 (d) make a false statement or representation for purposes of inducing a lender to extend
480 credit as part of a residential mortgage loan transaction;
481 (e) give or receive compensation or anything of value to influence the independent
482 judgment of an appraiser in reaching a value conclusion in a residential mortgage loan transaction;
483 (f) violate or not comply with:
484 (i) this chapter;
485 (ii) an order of the commission or division; or
486 (iii) a rule made by the division;
487 (g) fail to respond within the required time period to:
488 (i) a notice or complaint of the division; or
489 (ii) a request for information from the division;
490 (h) make false representations to the division, including in a registration statement;
491 (i) engage in unprofessional conduct as defined by rule; or
492 (j) engage in an act or omission in transacting the business of residential mortgage loans
493 that constitutes dishonesty, fraud, or misrepresentation.
494 (2) [
497 control person of a registrant to do any of the following with respect to a criminal offense which
498 involves moral turpitude:
499 (a) [
500 (b) [
501 (c) [
502 (d) [
503 (2)(a) through (c).
504 Section 12. Section 61-2c-302 is amended to read:
505 61-2c-302. Record requirements.
506 (1) For the time period specified in Subsection (2), [
507 a registrant shall make or possess any record required for that [
508 by the division.
509 (2) [
510 a record described in Subsection (1) until the later of [
511 to occur of the following:
512 (a) the final entry on a residential mortgage loan is made by that [
513 (b) if the residential mortgage loan is serviced by the [
514 (i) the residential mortgage loan is paid in full; or
515 (ii) the [
516 (c) if the residential mortgage loan is not serviced by the [
517 mortgage loan is closed.
518 Section 13. Section 61-2c-401 is amended to read:
519 61-2c-401. Investigations -- Subpoena power of division.
520 (1) The division may investigate or cause to be investigated the actions of:
522 (a) a registrant and the control persons of any registrant;
523 (b) [
524 persons of any applicant; or
525 (c) [
526 mortgage loans within this state, and the control persons of any such entity.
527 (2) In conducting [
528 division may:
529 (a) subpoena witnesses;
530 (b) take evidence;
531 (c) require by subpoena duces tecum the production of books, papers, contracts, records,
532 other documents, or information considered relevant to an investigation; and
533 (d) serve a subpoena by certified mail.
534 (3) A failure to respond to a subpoena served by the division is considered as a separate
535 violation of this chapter.
536 Section 14. Section 61-2c-402 is amended to read:
537 61-2c-402. Disciplinary action.
538 (1) Subject to the requirements of this section, if [
539 to be registered under this chapter violates this chapter, the commission with the concurrence of
540 the director, may:
541 (a) impose a civil penalty against the [
542 exceed $500 per violation;
543 (b) do any of the following to a registration under this chapter:
544 (i) suspend;
545 (ii) revoke;
546 (iii) place on probation;
547 (iv) deny renewal; or
548 (v) deny reinstatement; or
549 (c) do both Subsections (1)(a) and (b).
550 (2) (a) Before the commission and the division may take an action described in Subsection
551 (1) [
552 (i) give notice to [
553 (ii) schedule an adjudicative proceeding.
554 (b) If after the adjudicative proceeding scheduled under Subsection (2)(a), the commission
556 registered under this section has violated this chapter, the commission may take an action
557 described in Subsection (1)[
559 (3) [
561 seek review by the executive director of the disciplinary action.
564 justification, the court may award reasonable litigation expenses to that [
565 entity as provided under Title 78, Chapter 27a, Small Business Equal Access to Justice Act.
567 order unless otherwise provided in the order.
568 (b) If an appeal of an order issued under this section is taken by [
570 in accordance with Section 63-46b-18 .
572 an action described in Subsection (1)(b) against a registration granted under this chapter.
574 individual or entity may apply to have [
575 requirements of Section 61-2c-202 for registration.
576 (b) Notwithstanding Subsection [
577 is revoked, [
578 sooner than five years after the date the registration is revoked in accordance with this section.
579 (c) If an individual or entity whose registration has been revoked applies for reinstatement
580 in accordance with Subsection (7)(b), the commission and the division may grant the application
581 for reinstatement if they find that:
582 (i) There has been good conduct on the part of the applicant subsequent to the events that
583 led to the revocation, and that the subsequent good conduct outweighs the events which led to the
584 revocation; and
585 (ii) The interest of the public is not likely to be harmed by the granting of the registration.
586 Section 15. Section 61-2c-403 is amended to read:
587 61-2c-403. Cease and desist orders.
588 (1) (a) The director may issue and serve [
589 service, on an individual or entity an order to cease and desist if:
590 (i) the director has reason to believe that [
591 engaging in acts constituting a violation of this chapter; and
592 (ii) it appears to the director that it would be in the public interest to stop the acts.
593 (b) Within ten days after [
595 accordance with Title 63, Chapter 46b, Administrative Procedures Act.
596 (c) Pending the hearing, the cease and desist order shall remain in effect.
597 (2) (a) After the hearing described in Subsection (1), if the [
599 chapter, the director shall issue an order making the cease and desist order permanent.
600 (b) (i) The director [
602 chapter if:
603 (A) (I) the [
604 (II) a permanent cease and desist order is issued against the [
605 following a hearing or stipulation; and
606 (B) (I) the [
607 (II) after discontinuing the acts, the [
608 (ii) The suit described in Subsection (2)(b)(i) shall be filed in the district court in the
610 (A) in which the acts occurred;
611 (B) where the [
612 (C) where the [
613 (3) The cease and desist order issued under this section may not interfere with or prevent
614 the prosecution of a remedy or action enforcement under this chapter.
615 (4) [
616 issued under this section is guilty of a class A misdemeanor.
616a h Section 16. Section 70D-1-10 is amended to read:
616b 70D-1-10. Notification of department -- Exemptions.
616c (1) Except as provided in Subsection (2), no person may engage in the business of making h
616d h mortgage loans nor may any person engage in the business of being a mortgage loan broker or servicer,
616e without first filing written notification with the department and paying the fees required by this chapter.
616f ( 2) The following persons are exempt from the notification requirements contained in this
616g chapter and
616h from the annual fee imposed in Subsection 70D-1-12(1):