State Codes and Statutes
Statutes > Utah > Title-61 > Chapter-02c > 61-2c-20961-2c-209. Sponsorship -- Affiliation.
(1) (a) The division may not license an individual, and an individual licensed under thischapter 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 a principal lending manager; or
(ii) if licensed as a principal lending manager, the individual is sponsored by an entitylicensed under this chapter.
(b) The division may not license any entity and an entity licensed under this chapter maynot conduct the business of residential mortgage loans unless the entity:
(i) sponsors a principal lending manager;
(ii) identifies at least one control person for the entity; and
(iii) 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 onwhich:
(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 sponsoredbecomes 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 originatoris affiliated becomes inactive or terminates.
(b) A principal lending manager's license automatically becomes inactive the day onwhich:
(i) the principal lending manager is not sponsored by an entity licensed under thischapter; or
(ii) the license of the entity with which the principal lending manager is sponsoredbecomes inactive or terminates.
(c) A entity licensed under this chapter automatically becomes inactive the day on whichthe entity's sponsorship with its principal lending manager terminates.
(3) (a) A person whose license is inactive may not transact the business of residentialmortgage 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 thischapter; and
(ii) pay a fee to the division set in accordance with Section 63J-1-504.
(c) To activate an inactive principal lending manager license, an individual shall:
(i) provide evidence that the individual is sponsored by an entity that holds an activelicense 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 principal lending manager with whom the individual is affiliated; and
(ii) in the business name under which the principal lending manager is authorized by thedivision 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 entityat 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 sametime:
(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 transactingthe business of residential mortgage loans from any person except the principal lending managerwith whom the mortgage loan originator is affiliated.
(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 whetherthe entities are:
(A) licensed under this chapter; or
(B) exempt under Section 61-2c-105.
(5) The division by rule made in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, may make rules that:
(a) define what constitutes:
(i) affiliation; or
(ii) sponsorship; and
(b) provide procedures by which:
(i) an individual who is licensed under this chapter may provide evidence of sponsorshipby an entity that is licensed under this chapter;
(ii) a mortgage loan originator may provide evidence of affiliation with a principallending manager; and
(iii) an entity licensed under this chapter may:
(A) provide evidence of its sponsorship of a principal lending manager;
(B) identify at least one control person for the entity; and
(C) provide a list of the one or more mortgage loan originators that the entity sponsors.
Enacted by Chapter 379, 2010 General Session
