The division may not license an individual, and an individual licensed under this chapter may not conduct the business of residential mortgage loans unless:
(i)
if licensed as a mortgage loan originator, the individual:
(A)
is sponsored by an entity licensed under this chapter; and
(B)
is affiliated with the sponsoring entity's principal lending manager; or
(ii)
if licensed as a lending manager, the individual is sponsored by an entity licensed under this chapter.
(b)
The division may not license an entity and an entity licensed under this chapter may not conduct the business of residential mortgage loans unless the entity:
(i)
conducts the entity's business of residential mortgage loans from a location within the United States;
(ii)
sponsors a principal lending manager;
(iii)
identifies at least one control person for the entity; and
(iv)
provides a list of the mortgage loan originators sponsored by the entity.
(2)
(a)
A mortgage loan originator's license automatically becomes inactive the day on which:
(i)
the mortgage loan originator is not sponsored by an entity licensed under this chapter;
(ii)
the license of the entity with which the mortgage loan originator is sponsored becomes inactive or terminates;
(iii)
the mortgage loan originator is not affiliated with a principal lending manager; or
(iv)
the license of the principal lending manager with whom the mortgage loan originator is affiliated becomes inactive or terminates.
(b)
A lending manager's license automatically becomes inactive the day on which:
(i)
the lending manager is not sponsored by an entity licensed under this chapter; or
(ii)
the license of the entity with which the lending manager is sponsored becomes inactive or terminates.
(c)
An entity licensed under this chapter automatically becomes inactive the day on which the entity's sponsorship with the entity's principal lending manager terminates.
(3)
(a)
A person whose license is inactive may not transact the business of residential mortgage loans.
(b)
To activate an inactive mortgage loan originator license, an individual shall:
(i)
provide evidence that the individual:
(A)
is sponsored by an entity that holds an active license under this chapter; and
(B)
is affiliated with a principal lending manager who holds an active license under this chapter; and
(ii)
pay a fee to the division set in accordance with Section 63J-1-504.
(c)
To activate an inactive lending manager license, an individual shall:
(i)
provide evidence that the individual is sponsored by an entity that holds an active license under this chapter; and
(ii)
pay a fee to the division set in accordance with Section 63J-1-504.
(d)
To activate an inactive license held by an entity, an entity shall:
(i)
provide evidence of the entity's sponsorship of a principal lending manager; and
(ii)
pay a fee to the division set in accordance with Section 63J-1-504.
(4)
(a)
A mortgage loan originator shall conduct the business of residential mortgage loans only:
(i)
through the entity by which the individual is sponsored; and
(ii)
in the business name under which the sponsoring entity's principal lending manager is authorized by the division to do business.
(b)
An individual licensed under this chapter may not:
(i)
engage in the business of residential mortgage loans on behalf of more than one entity at the same time;
(ii)
be sponsored by more than one entity at the same time;
(iii)
transact the business of residential mortgage loans for the following at the same time:
(A)
an entity licensed under this chapter; and
(B)
an entity that is exempt from licensure under Section 61-2c-105; or
(iv)
if the individual is a mortgage loan originator, receive consideration for transacting the business of residential mortgage loans from any person except the principal lending manager of the mortgage loan originator's sponsoring entity.
(c)
This Subsection (4) does not restrict the number of:
(i)
different lenders a person may use as a funding source for a residential mortgage loan; or
(ii)
entities in which an individual may have an ownership interest, regardless of whether the entities are:
Section 2c-209 ("Sponsorship -- Affiliation.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 2c-209?
A common citation format is "Utah Code § 2c-209" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 2c-209 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
