Utah Administrative Code
Topic - Commerce
Title R162 - Real Estate
Rule R162-2c - Utah Residential Mortgage Practices and Licensing Rules
Section R162-2c-301a - Unprofessional Conduct

(i) solicit business and market products solely in the name of the mortgage loan originator's sponsoring entity;

(ii) conduct the business of residential mortgage loans solely in the name of the mortgage loan originator's sponsoring entity;

(iii) remit to any third-party service provider the fees that have been collected from a borrower on behalf of the third-party service provider, including:

(iv) turn all records over to the sponsoring entity for proper retention and disposal; and

(v) comply with a division request for information within ten business days of the date of the request.

(i) charge for services not performed;

(ii) require a borrower to pay more for third-party services than the cost of those services;

(iii) withhold, without reasonable justification, payment owed to a third-party service provider in connection with the business of residential mortgage loans;

(iv) alter an appraisal of real property; or

(v) unless acting under a valid real estate license and not under a mortgage license, perform any act that requires a real estate license under Title 61, Chapter 2f, Real Estate Licensing and Practices Act, including:

(i) offers advice about the consequences that the terms of a purchase agreement might have on the terms and availability of various mortgage products;

(ii) owns real property that the mortgage loan originator offers "for sale by owner"; or

(iii) advertises mortgage loan services in cooperation with a "for sale by owner" seller where the advertising clearly identifies:

(iv) advertises in conjunction with a real estate brokerage where the advertising clearly identifies the:

(i) be accountable for the affirmative duties outlined in Subsection (1)(a);

(ii) provide to sponsored mortgage loan originators and unlicensed staff specific written policies as to their affirmative duties and prohibited activities, as established by:

(iii) if acting as a PLM or BLM, exercise reasonable supervision over each sponsored mortgage loan originator and unlicensed staff member, including each sponsored mortgage loan originator or unlicensed staff member teleworking, by:

(iv)

(v) establish and follow procedures for responding to consumer complaints;

(vi) establish and maintain a quality control plan that:

(vii) establish, maintain, and enforce written policies and procedures to ensure customer privacy, customer information security, encryption of data, and password management, including a cyber security policy that provides that each teleworking employee and sponsored originator must use a secure virtual private network maintained by the sponsoring mortgage entity;

(viii) review for compliance with applicable federal and state laws the advertising and marketing materials and methods used by:

(ix)

(i) work from the branch office the LM is assigned to manage;

(ii) personally oversee the mortgage loan origination activities conducted through the branch office; and

(iii) personally supervise the mortgage loan originators and unlicensed staff affiliated with the branch office.

(i) remit to any third-party service provider the fees that have been collected from a borrower on behalf of the third-party service provider, including:

(ii) keep and dispose of records and customer information according to Section R162-2c-302; and

(iii) comply with a division request for information within ten business days of the date of the request;

(iv)

(v) ensure that:

(vi) notify, in writing and without unreasonable delay, each affected customer of a suspected breach of the mortgage entity's security system, if misuse of the customer's personal information occurs or is likely to occur as a result of the suspected security breach.

(i) any sponsored mortgage loan originator or LM to engage in any prohibited conduct; or

(ii) any unlicensed employee to perform an activity that requires a license.

(i) within 15 calendar days of any material change in the information outlined in Subsection R162-2c-203(1)(b), provide to the division written notice of the change;

(ii) with regard to the criminal history disclosure required under Subsection R162-2c-203(1)(b)(ix);

(iii) maintain a record of each student's attendance for a minimum of five years after enrollment;

(iv) upon request of the division, substantiate any claim made in advertising materials;

(v) maintain a high quality of instruction;

(vi) adhere to all state laws and rules regarding school and instructor certification;

(vii) provide the instructors for each course with the required course content outline;

(viii) require instructors to adhere to the approved course content;

(ix) comply with a division request for information within ten business days of the date of the request;

(x) upon completion of the course requirements, provide a certificate of completion to each student; and

(xi) ensure that the material is current in courses taught on:

(i) accept payment from a student without first providing to that student the information outlined in Subsections R162-2c-203(1)(b)(vi) through R162-2c-203(1)(b)(ix);

(ii) continue to operate after the expiration date of the school certification and without renewing;

(iii) continue to offer a course after its expiration date and without renewing;

(iv) allow an instructor whose instructor certification has expired to continue teaching;

(v) allow an individual student to earn more than eight credit hours of education in a single day;

(vi) award credit to a student who has not complied with the minimum attendance requirements;

(vii) allow a student to obtain credit for all or part of a course by taking an examination in lieu of attending the course;

(viii) give valuable consideration to a person licensed with the division under Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act, for referring students to the school;

(ix) accept valuable consideration from a person licensed with the division under Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act, for referring students to a licensed mortgage entity;

(x) allow licensed mortgage entities to solicit prospective mortgage loan originators at the school during class time or during the 10-minute break that is permitted during each hour of instruction;

(xi) require a student to attend any program organized for solicitation;

(xii) make a misrepresentation in its advertising;

(xiii) advertise in any manner that denigrates the mortgage profession;

(xiv) advertise in any manner that disparages a competitor's services or methods of operation;

(xv) advertise or teach any course that has not been certified by the division;

(xvi) advertise a course with language that indicates division approval is pending or otherwise forthcoming; or

(xvii) attempt by any means to obtain or to use in its educational offerings the questions from any mortgage examination unless the questions have been dropped from the current bank of exam questions.

(i) adhere to the approved outline for any course taught; and

(ii) comply with a division request for information within ten business days of the date of the request.

(i) continue to teach any course after the instructor's certification has expired and without renewing the instructor's certification; or

(ii) continue to teach any course after the course has expired and without renewing the course certification.