61-2c-205.1 - Transition to use of nationwide database.
61-2c-205.1. Transition to use of nationwide database.
(1) An individual not required to be licensed under this chapter as in effect on December31, 2010, who is required to be licensed under this chapter as in effect on January 1, 2011, maynot engage in the business of residential mortgage loans on or after January 1, 2011 withoutholding a license under this chapter.
(2) An individual who applies for a license under this chapter on or after January 1, 2011,shall meet the requirements of this chapter as in effect on January 1, 2011.
(3) (a) This Subsection (3) applies to a licensee who:
(i) will engage in an activity as a mortgage loan originator on or after January 1, 2011;and
(ii) holds an active license under this chapter on December 31, 2010.
(b) A licensee shall comply with the requirements of this chapter as in effect on January1, 2011, by no later than January 1, 2011, in order to hold an active license on or after January 1,2011.
(c) The license of a licensee that fails to comply with this section on or before January 1,2011 becomes inactive on January 1, 2011 until:
(i) the day on which the licensee complies with the requirements of this chapter; or
(ii) the license expires.
(4) (a) A license of an individual who will engage in an activity as a mortgage loanoriginator that is inactive on December 31, 2010, terminates as of January 1, 2011 unless thatlicensee provides on or before January 1, 2011, evidence satisfactory to the division that thelicensee has complied with the requirements for registration under the nationwide database.
(b) The division may by rule, made in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, prescribe:
(i) the "requirements for registration under the nationwide database" described inSubsection (4)(a);
(ii) the evidence required by this Subsection (4); and
(iii) the procedure for submitting the evidence required by this Subsection (4).
(5) The division may make rules in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, providing a process:
(a) that is consistent with this section to transition the licensing of individuals engaged inthe business of residential mortgage loans to the license requirements under this chapter as ineffect on January 1, 2011; or
(b) to suspend a requirement for holding a license under this chapter that is related to thenationwide database if:
(i) the suspension is related to changes made to federal licensing requirements on or afterJanuary 1, 2009; and
(ii) the suspension ends on or before December 31, 2011.
(6) The division may report or provide recommendations to the Legislature regardingchanges, if any, that could be made to this chapter in response to changes made to the nationwidedatabase or under federal licensing requirements, including changes related to grandfathering.
Amended by Chapter 379, 2010 General Session