Utah Governor Gary Herbert recently signed into law a bill, Senate Bill 140 (SB 140), which amends the Utah Residential Mortgage Practices and Licensing Act (RMPLA). This bill, among other things, establishes the criteria and parameters to temporarily authorize individuals to act as mortgage loan originators.
Some of the other key provisions of SB 140 include the following:
- Allows the Utah Division of Real Estate (Division) to issue citations for originating a loan without a license under the RMPLA;
- Beginning January 1, 2020, requires a background check for certain licenses to include ongoing monitoring through the FBI’s Next Generation Identification System’s Rap Back Service;
- Establishes a fee for background checks;
- Permits the Securities Commission to make rules, with the concurrence of the Division, in relation to background checks; and
- Expands the grounds for bringing a disciplinary action against a licensed sales agent, principal broker, or associate broker (e.g., the bill prohibits a licensee from taking or removing from the premises of a main office or a branch office, or otherwise limiting a real estate brokerage’s access to or control over certain business records).
The changes made by SB 140 go into effect on May 13, 2019.