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Mortgage License Frequently Asked Questions

What is the SAFE Act and NMLS?

Following the economic crises of 2008, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) was established to increase uniformity, reduce regulatory burden, enhance consumer protection, and reduce fraud. To reach this end a Nationwide Mortgage Licensing System and Registry (NMLS) was established to provide uniform license applications and reporting, comprehensive supervision, work flow among regulators, enhanced consumer protection, consumer access to information, and other measures designed to reduce fraud and protect the consumer. This will impact all licensed mortgage officers and affect in some degree how they maintain their licenses. 

 Who must license?

According to Utah law, and now Federal law, any individual, company, company branch, or DBA (whether physically located in Utah or not) that transacts the “business of residential mortgage loans” in Utah must register an/or obtain a license from the Division.  For a simple chart showing what you must do and when see: Safe: 2009 and 2010 Changes.

“Business of residential mortgage loans” is defined in statute as: 1) originating a residential mortgage loan; 2) directly or indirectly soliciting, placing, or negotiating a residential mortgage loan; or 3) rendering services related to the origination or funding of a residential mortgage loan, including taking applications, obtaining verifications and appraisals, and communicating with the borrower and lender. (Utah Code §61-2c-102)

Who is exempt from licensing?

Federal government agencies and employees and state agencies and employees are NOT required to be licensed with the Utah Division of Real Estate.

Loan servicers and depository institutions (banks, savings and loan associations, credit unions and industrial loan companies) and their affiliates and employees are regulated by the Utah Department of Financial Institutions and are NOT required to be licensed with the Utah Division of Real Estate.

Wholesale lenders, hard-money lenders, and commercial property lenders are NOT required to be licensed with the Utah Division of Real Estate as long as they do not conduct the business of residential mortgage loans as defined in Utah Code §61-2c-102.

CAUTION: While Utah's mortgage licensing laws may not apply to wholesale lenders, hard-money lenders, commercial property lenders, or real estate lenders, other laws may apply. Any lender whose capital comes from investors must comply with securities laws. This may require licensing as a securities broker-dealer and registering the investment program with the Utah Division of Securities.

How do I become a licensed Mortgage Officer?

The mortgage licensing laws and regulations are changing to comply with the federally mandated SAFE Act.  During the transition to this law, it is important that you follow instructions relative to the time frame in which you are applying.

To become a licensed Mortgage Officer between October 1, 2009 and December 31, 2009 , an individual must:

  1. Meet the statutory licensing qualifications of good moral character, competency, honesty, integrity, and truthfulness. (Utah Code Annotated 61-2c-203)
  2. Meet the statutory minimum licensing qualifications as outlined in Title V Sec 1505 of the Safe Act, that include the following:
    1. The applicant has never had a loan originator license revoked in any governmental jurisdiction.
    2. The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court--

      3. a) During the 7-year period preceding the date of the application for licensing and registration; or

      b) At any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering.

    3. The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the loan originator will operate honestly, fairly, and efficiently within the purposes of this title.
    4. Be at least 18 years of age at the time of application.
    5. Take 20 hours of approved education at a certified Mortgage Pre-license School as outlined on the Mortgage Officer Pre-license Education Curriculum.  This will change on January 2010 to 60 hours - 40 hours of Utah DRE-approved and 20 hours of NMLS-approved education.
    6. Take and pass the Mortgage Officer exam which includes two exams.  The national portion must be taken at an NMLS testing center.  To register for the exam, you must log on to NMLS and create an Individual Account to register for the exam.  Please follow the NMLS Testing Guideline in preparing to take the exam. Note:  You are not allowed to take any personal items into the testing center, including a calculator.  One will be provided for you. The state portion of the exam must be taken at a Utah testing center. These tests may be administered at two different locations.
    7. Submit to the Division:
    • Completed and signed application (issued at the testing center).
    • Signed original Education Certifying Document (issued by the mortgage school).
    • A copy of the "unofficial testing results" that you receive after taking the NMLS exam.
    • Signed responses to the Qualifying Questionnaire (issued at the testing center) and supporting documentation to any “YES” answers.
    • Two fingerprint cards or receipt of electronic fingerprint submission and a signed Fingerprint Waiver (issued at the testing center)*.
    • Pay the appropriate fees.  See Fee Chart.
    • Complete and sign the Social Security Verification Form.

Note: Incomplete applications will be returned to the applicant.

*Note: If the exam is taken at a location in Utah, fingerprints will be taken after the exam.  If the test is taken outside of Utah, fingerprint cards can be obtained from the Division or a local police station.

To become a licensed Mortgage Officer between January 1, 2010, and February 22, 2010, you must:

  • Meet the minimum requirements as listed above.
  • Create your personal record in NMLS by completing Form MU4.  The company you are affiliating with must also create an account in NMLS to sponsor a new loan officer.  Please reference NMLS Quick Quides.  Registering on NMLS will allow you to obtain a unique identifier and to register to take the NMLS portion of the exam.  New applicants will continue to take the state portion of the exam through a Utah testing center.  Note:  These tests may be administered at two different locations.
  • Pre-licensing requirements include 20 hours of NMLS-approved courses that include 3 hours federal law and regulations, 3 hours ethics (including fraud, consumer protection, and fair lending practies), 2 hours non-traditional mortgages, and 12 hours of electives; AND 40 hours of Utah-approved pre-licensing education through an approved provider.

To become a licensed Mortgage Officer on or after February 22, 2010, an individual must:

  • Meet the minimum requirements listed above.
  • Meet the pre-liensing requirements as listed above (20 hours of NMLS-approved courses and 40 hours of Utah DRE-approved courses through an approved provider.)
  • Create your personal record in NMLS by completing an MU4 Form.  The company you are affiliating with must submit a sponsorship request.  Please reference NMLS Quick Guides.  Registering with NMLS will allow you to obtain a unique identifier and you can register to take both the federal and Utah state portion of the exam at an NMLS testing center.

How do I become a licensed Principal/Associate Lending Manager?

To become a licensed Principal Lending Manager or an Associate Lending Manager prior to December 31, 2009, an individual must:

  1. Meet the minimum statutory licensing qualifications as outlined for a Mortgage Officer above.
  2. Complete, sign, and submit to the Division the PLM/ALM Experience Documentation Form (and Addendum if necessary).
  3. Wait for the notice of experience verification from the Division prior to taking the pre-license education and exam.
  4. Take 40 hours of approved education from a certified Mortgage Pre-license School as outlined on the PLM Pre-license Education Curriculum.
  5. Take and pass the PLM exam.
  6. Submit to the Division:
  • Completed and signed application (issued at the testing center).
  • Signed original Education Certifying Document (issued by the Division).
  • Signed responses to the Qualifying Questionnaire (issued at the testing center) and supporting documentation to any “YES” answers.
  • Two fingerprint cards or receipt of electronic fingerprint submission and a signed Fingerprint Waiver (issued at the testing center).
    Note: fingerprints and associated processing fee are not required if currently licensed with the Division.
  • Pay the appropriate fees.  See Fee Chart.

Note: Incomplete applications will be returned to the applicant.

Note: If the exam is taken at a location in Utah, fingerprints will be taken after the exam.  If the test is taken outside of Utah, fingerprint cards may be obtained from the Division or a local police station.  

On January 1, 2010, all new PLM/ALM applications will be processed in NMLS by completing the MU2 Form (if applicable) and the MU4 Form and submitting the Utah jurisdictional documentation as required above.

By May 30, 2010, all current licensees must transition their license information onto NMLS and complete the corresponding Forms MU2 (if applicable) and MU4.  The PLMs and ALMs must complete the company sponsorship before the MU4 Form will be approved.  NMLS requires a processing fee. 

How do I renew my license?

If you have an expiration date in 2009, you must renew your license in your regular renewal time. You can complete this renewal through our current online system. Thereafter, your license will need to be renewed annually between November 1 and December 31 each year in the Nationwide Mortgage Licensing System (NMLS).

Beginning on January 1, 2010, all licensees will be able to begin transitioning their license information onto NMLS and create their personal record.  This transition must occur before you can renew your license in 2010.  As part of this process, your company will also need to register in NMLS.  All licensees and companies will have until May 30, 2010, to complete this process.  This will require a $30 NMLS transition fee.

The renewal period begins November 1 and runs through December 31.  During this time companies and individual users can request renewal of their licenses and submit payment.  Regulators will be approving licensees during this time.  All fees associated with renewal will be paid through NMLS.

Should you fail to renew by the end of the year in 2010, there is a Reinstatement Period from January 1 to February 28 where you can request renewal.  There will be late fees in addition to the regular renewal fees.

Should you fail to renew by the end of business on February 28 of the year following your expiration date and you wish to obtain a license at a later date, you will be required to enroll as a new licensee.

Entities (companies, branches, or dbas) must follow the same timeline as for individual licenses.

*Note: Renewal requirements must be completed prior to renewing your license. If your license expires, you cannot work until the license is reinstated. Your application is subject to audit for compliance with all renewal requirements.

Continuing Education Requirements for Renewing Licensees

For existing licenses obtained prior to October 1, 2009:

  • 14 hours of Utah DRE-approved Mortgage CE courses, including 2 hours of core ethics, 3 hours of core federal/state mortgage lending laws, and 9 hours of approved Mortgage education courses.  Click here for a list of certified "Live" Mortgage Continuing Education Courses or "Online" Mortgage Continuing Education Courses.  (Courses that are highlighted in yellow have been certified as ethics or federal/state mortgage lending laws.)  You may only take courses approved for Mortgage education to meet this requirement.  Note:  You may obtain credit for a non-certified course taken outside of Utah by submitting to the Division the Non-Certified Continuing Education Credit Request.  You may also take any approved NMLS courses.
  • For every subsequent renewal, beginning in 2011, 8 hours of NMLS-approved Continuing Education credits must be obtained.  These hours must include: 3 hours federal law, 2 hours ethics (fraud, consumer protection, and fair lending practices), 2 hours non-traditional mortgages, and 1 hour elective.

For licenses obtained between October 1 and December 31, 2009:

  • 8 hours of NMLS- OR Utah-approved Continuing Education credits must be obtained prior to 2010 renewal period.  These hours must include: 3 hours federal/state mortgage lending law, and 2 hours of ethics.
  • For every subsequent renewal, beginning in 2011, 8 hours of NMLS-approved Continuing Education credits must be obtained. These hours must include: 3 hours federal law, 2 hours ethics (fraud, consumer protection, and fair lending practices), 2 hours non-traditional mortgages, and 1 hour elective.

Note: CE is not required if renewing as inactive in 2010, BUT you must create an account in NMLS and pass the state and federal exam.  If you are changing to active status in 2010, you will need to submit proof of 14 hours of CE.  Beginning in 2011, to maintain an inactive status, you will need to complete 8 hours of NMLS-approved Continuing Education as outlined above each year.

How do I reinstate an expired license?

Prior to 2011, A license may be reinstated after 30 days and within 6 months of the expiration date by completing the renewal instructions above AND taking 12 hours of education (in addition to the 14 hours for renewal) approved by the Division. You must pay the reinstatement fees and change fees as outlined on the Fee Chart. After 2011, if you allow your license to expire and you later want to obtain a license, you must apply for a license in NMLS as a new applicant.

How do I update my address, status, or affiliation?

For existing licensees until May 31, 2010:

For existing licensees after May 31, 2010:

You must maintain current information in the NMLS site on the MU4 form.  Thre may be some fees associated with changes to your record.  These fees will be outlined in NMLS.

How do I obtain a license for a Mortgage Company or bda Company?

To obtain a license for a Mortgage Company, currently and until December 31, 2009, submit to the Division :

  • Completed and signed Mortgage Company/Branch Application.
  • A Change Card for each licensee assigned to the Company and affiliating with the Principal Lending Manager.
    Note: All mortgage companies licensed by the Utah Division of Real Estate require a licensed Principal Lending Manager who supervises and pays all Mortgage Officers.
  • Certificate of Existence from the Utah Division of Corporations showing the company is current and in good standing.
  • Notarized letter on the company’s letterhead, signed by a company President or Owner, authorizing the PLM to use the company name.

To obtain a license for a Mortgage Company before May 31, 2010:

All new and existing companies (entities) must create a registration on the NMLS site and complete an MU1 Form and the accompanying MU2 Form.  There are procedures in NMLS to be followed as well as jurisdictional specific procedures for Utah.  These are indicated in NMLS and summarized below:

  • Each entity must submit a Certificate of Existence from the Utah Division of Corporations.
  • Each entity must submit a notarized letter on company letterhead authorizing the Principal Lending Manager to use the company name.
  • All trade names (dbas) must be registered as a separate entity and follow the same procedures.

How do I register a Branch Office of a Mortgage Company?

To register a Branch Office, currently and through December 31, 2009, submit to the Division:

To register a Branch Office, beginning January 1, 2010:

  • File a Form MU3 through NMLS.
  • A Form MU1 must be filed in NMLS for the Company before a branch filing can occur.
  • A branch manager must be designated for each location.
  • If the branch manager is originating mortgage loans, he must file an MU4 Form.
  • The registration costs include the NMLS processing fee and the new application fee.  All fees are payable through NMLS and are non-refundable.
  • Once a request for licensure has been made in NMLS, the Utah Division of Real Estate will review for approval.
  • All documentation must be submitted to the Utah Division of Real Estate within 5 days of the electronic submission of your application.

How do I change a Mortgage Company name?

To change a Company name, submit to the Division:

  • Completed and signed Change Card.
  • Certificate of Existence from the Utah Division of Corporations showing the company is current and in good standing.
  • Notarized letter on the company’s letterhead, signed by a company President or Owner, authorizing the PLM to use the company name.
  • After a Company is registered on NMLS, which must take place prior to May 31, 2010, all name changes (and other amendments) wil be processed in NMLS by amending the MU1 Form.  There may be fees charged by NMLS for amendments to a company record.

How do I change a Mortgage Company owner?

To change a Company owner, submit to the Division:

  • Certificate of Existence from the Utah Division of Corporations showing the new ownership and that the company is current and in good standing.
  • Notarized letter on the company’s letterhead, signed by a company President or Owner, authorizing the PLM to use the company name.
  • After the Company is registered on NMLS, which must take place prior to May 30, 2010, all ownership changes must be submitted on Form MU1.  Documentation will continue to be submitted to the Utah Division of Real estate within 5 days of filing in NMLS.

How do I change the PLM for a Mortgage Company?

To change the PLM for a Mortgage Company, submit to the Division:

  • Completed and signed Change Card for each PLM.
  • Notarized letter on the company’s letterhead, signed by a company President or Owner, authorizing the PLM to use the company name.
  • After the Company is registered in NMLS, to change a PLM, you will need to amend the MU1 Form and the accompanying MU2 Form. 

How do I obtain a Utah Mortgage license while licensed in another state?

Beginning January 1, 2010, all individuals wishing to originate mortgages in Utah with a license in another state, can obtain a Utah license by:

  • Updating yourrecord in NMLS to request licensure in the state of Utah.
  • Satisfying the 40 hour pre-licensing education requirement.
  • Passing the Utah state component of the SAFE test.
  • Completing the applicaiton and paying all associated fees in NMLS.