Utah Amends Residential Mortgage Licensing Laws, Exempts Underwriters from Licensing

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Recently, the State of Utah enacted into law House Bill 332, which amends numerous provisions to Title 61, Securities-Real Estate Division. Among changes the rules make to the practice of mortgage lending and licensing, the amendment creates a procedure for the voluntary surrender of a license issued under the Residential Mortgage Practices Act, Real Estate Licensing and Practices Act, and the Real Estate Appraiser Licensing and Certification Act. These changes take effect May 12, 2014.

The bill also modifies the scope of the "business of residential mortgage loans" to expressly exclude the following persons from licensing as an MLO:

  • Loan underwriters working under the direction and control of employers licensed by the Utah Division of Real Estate
  • Loan underwriters working exclusively for depository institutions

In short, House Bill 332 makes clear that an individual loan processor or loan underwriter is not required to be licensed as an MLO as long as he or she works under the direction and control of a company licensed under the Residential Mortgage Practices Act, or for a depository.

NMLS Adds New Money Transmitter License from Nebraska

On April 14, the Nebraska Department of Banking and Finance began receiving new applications and transitional filings for the Money Transmitter License through NMLS.

Topics:  Mortgages, Real Estate Market, Underwriting

Published In: Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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