(1) As used in this chapter: (a) "Affiliation" means that a mortgage loan originator is associated with a principal lending manager in accordance with Section 61-2c-209. (b) "Applicant" means a person applying for a license under this chapter. (c) "Approved examination provider" means a person approved by the nationwide database or by the division as an approved test provider. (d) "Associate lending manager" means an individual who: (i) qualifies under this chapter as a principal lending manager; and (ii) works by or on behalf of another principal lending manager in transacting the business of residential mortgage loans. (e) "Balloon payment" means a required payment in a mortgage transaction that: (i) results in a greater reduction in the principle of the mortgage than a regular installment payment; and (ii) is made during or at the end of the term of the loan. (f) "Branch lending manager" means an individual who is: (i) licensed as a lending manager; and (ii) designated in the nationwide database by the individual's sponsoring entity as being responsible to work from a branch office and to supervise the business of residential mortgage loans that is conducted at the branch office. (g) "Branch office" means a licensed entity's office: (i) for the transaction of the business of residential mortgage loans regulated under this chapter; (ii) other than the main office of the licensed entity; and (iii) that operates under: (A) the same business name as the licensed entity; or (B) another trade name that is registered with the division under the entity license. (h) "Business day" means a day other than: (i) a Saturday; (ii) a Sunday; or (iii) a federal or state holiday. (i) (i) "Business of residential mortgage loans" means for compensation or in the expectation of compensation to: (A) engage in an act that makes an individual a mortgage loan originator; (B) make or originate a residential mortgage loan; (C) directly or indirectly solicit a residential mortgage loan for another; (D) unless exempt under Section 61-2c-105 or excluded under Subsection (1)(i)(ii), render services related to the origination of a residential mortgage loan including: (I) preparing a loan package; (II) communicating with the borrower or lender; (III) advising on a loan term; (IV) receiving, collecting, or distributing information common for the processing or underwriting of a loan in the mortgage industry; or (V) communicating with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan; or (E) engage in loan modification assistance. (ii) "Business of residential mortgage loans" does not include: (A) ownership of an entity that engages in the business of residential mortgage loans if the owner does not personally perform the acts listed in Subsection (1)(i)(i); (B) acting in one or more of the following capacities: (I) a loan wholesaler; (II) an account executive for a loan wholesaler; (III) a loan closer; or (IV) funding a loan; or (C) if employed by a person who owns or services an existing residential mortgage loan, the direct negotiation with the borrower for the purpose of loan modification. (j) "Certified education provider" means a person who is certified under Section 61-2c-204.1 to provide Utah-specific prelicensing education. (k) "Closed-end" means a loan: (i) with a fixed amount borrowed; and (ii) that does not permit additional borrowing secured by the same collateral. (l) "Commission" means the Residential Mortgage Regulatory Commission created in Section 61-2c-104. (m) "Community development financial institution" means the same as that term is defined in 12 U.S.C. Sec. 4702. (n) "Compensation" means anything of economic value that is paid, loaned, granted, given, donated, or transferred to an individual or entity for or in consideration of: (i) services; (ii) personal or real property; or (iii) another thing of value. (o) "Concurrence" means that entities given a concurring role must jointly agree for the action to be taken. (p) "Continuing education" means education an individual takes in order to meet the education requirements imposed by Sections 61-2c-204.1 and 61-2c-205 to activate, renew, or reinstate a license under this chapter. (q) "Control," as used in Subsection 61-2c-105(2)(f), means the power to directly or indirectly: (i) direct or exercise a controlling interest over: (A) the management or policies of an entity; or (B) the election of a majority of the directors, officers, managers, or managing partners of an entity; (ii) vote 20% or more of a class of voting securities of an entity by an individual; or (iii) vote more than 5% of a class of voting securities of an entity by another entity. (r) (i) "Control person" means an individual identified by an entity registered with the nationwide database as being an individual directing the management or policies of the entity. (ii) "Control person" may include one of the following who is identified as provided in Subsection (1)(r)(i): (A) a manager; (B) a managing partner; (C) a director; (D) an executive officer; or (E) an individual who performs a function similar to an individual listed in this Subsection (1)(r) (ii). (s) "Depository institution" means the same as that term is defined in Section 7-1-103. (t) "Director" means the director of the division. (u) "Division" means the Division of Real Estate. (v) "Dwelling" means a residential structure attached to real property that contains one to four family units including any of the following if used as a residence: (i) a condominium unit; (ii) a cooperative unit; (iii) a manufactured home; or (iv) a house. (w) "Employee": (i) means an individual: (A) whose manner and means of work performance are subject to the right of control of, or are controlled by, another person; and (B) whose compensation for federal income tax purposes is reported, or is required to be reported, on a W-2 form issued by the controlling person; and (ii) does not include an independent contractor who performs duties other than at the direction of, and subject to the supervision and instruction of, another person. (x) "Entity" means: (i) a corporation; (ii) a limited liability company; (iii) a partnership; (iv) a company; (v) an association; (vi) a joint venture; (vii) a business trust; (viii) a trust; or (ix) another organization. (y) "Executive director" means the executive director of the Department of Commerce. (z) "Federal licensing requirements" means Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C. Sec. 5101 et seq. (aa) "Foreclosure rescue" means, for compensation or with the expectation of receiving valuable consideration, to: (i) engage, or offer to engage, in an act that: (A) the person represents will assist a borrower in preventing a foreclosure; and (B) relates to a transaction involving the transfer of title to residential real property; or (ii) as an employee or agent of another person: (A) solicit, or offer that the other person will engage in an act described in Subsection (1)(aa) (i); or (B) negotiate terms in relationship to an act described in Subsection (1)(aa)(i). (bb) "Inactive status" means a dormant status into which an unexpired license is placed when the holder of the license is not currently engaging in the business of residential mortgage loans. (cc) "Lending manager" means an individual licensed as a lending manager under Section
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