32-10-103. Definitions. As used in this chapter, the following definitions apply:
(1) "Advertising" means a commercial message in any medium that promotes, either directly or indirectly, a mortgage lending transaction.
(2) "Annual audit" means an audit of the licensee's books, accounts, records, and systems of internal control performed by an independent certified public accountant in accordance with generally accepted accounting principles and auditing standards.
(3) "Borrower" means the person or persons seeking a residential mortgage loan.
(4) "Branch office" means a location, other than a licensee's principal place of business:
(a) the address of which appears on business cards, stationery, or advertising used by the licensee;
(b) at which the licensee's name or advertising suggests that mortgage loans are made; or
(c) that, due to the actions of an employee or independent contractor employed by the licensee, is held out to the public as a branch office of the licensee where mortgage loans are made.
(5) "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a licensee, whether through the ownership of voting stock of the licensee, the ownership of voting stock of any entity that possesses that power, or otherwise. Control must be presumed to exist if any person, directly or indirectly, owns, controls, or holds the power to vote 10% or more of the voting stock of any licensee or of any entity that owns, controls, or holds the power to vote 10% or more of the voting stock of the licensee. A person may not be considered to control a licensee solely by reason of being an officer or director of the licensee.
(6) "Department" means the department of administration provided for in 2-15-1001, acting through its division of banking and financial institutions.
(7) "Electronically transmitted" or "by electronic media" means any transmission via diskette, wire, or tape, including but not limited to the intranet, interactive or otherwise, the internet, any other computer network, electronic mail, or other similar method of transmission.
(8) "Employee" means an individual who is engaged in the service of a licensee for a salary or wages and who is subject to the licensee's direction and control.
(9) "Escrow funds, trust funds, or reserves" means money entrusted to a mortgage lender by a borrower for the purpose of payment of taxes, insurance, or other payments to be made in connection with the servicing of a mortgage loan.
(10) "Financial institution" means any state, national, or federal bank, savings bank, savings and loan association, credit union, or trust company.
(11) "Financial institution holding company" means a bank holding company, as defined under 12 U.S.C. 1841, a savings and loan holding company, as defined under 12 U.S.C. 1467a, or any other financial institution holding company as defined under federal law or regulation.
(12) "Independent contractor" means a person certified as an independent contractor pursuant to 39-71-417.
(13) "Interest rate lock-in agreement" means an agreement, transmitted in writing or by electronic media, in which the mortgage lender guarantees for a specified number of days or until a specified date the availability of a specified rate of interest, a specified formula by which the rate of interest will be determined, or a specific number of discount points if the mortgage loan is approved and closed within the stated period of time.
(14) "Licensee" means a person who is authorized pursuant to this chapter to engage in the activities regulated by this chapter.
(15) "Loan commitment" or "commitment" means a statement transmitted in writing or electronically transmitted by a mortgage lender setting forth the terms and conditions upon which the mortgage lender is willing to make a particular mortgage loan to a particular borrower.
(16) "Making a mortgage loan" means to advance funds, offer to advance funds, or make a commitment to advance funds to a loan applicant for a mortgage loan.
(17) "Mortgage lender" means a person who makes a mortgage loan or who represents that the person is capable of making a mortgage loan.
(18) "Mortgage lending" means making a mortgage loan or the capability of making a mortgage loan.
(19) "Mortgage loan" or "residential mortgage loan" means a loan primarily secured by either a mortgage, deed of trust, or trust indenture on residential real estate located in this state.
(20) "Person" means an individual, partnership, corporation, association, limited liability company, limited liability partnership, or other entity.
(21) "Principal place of business" means a licensee's primary business office as designated on the application for licensure or any amendment to the application.
(22) "Residential real property" or "residential real estate" means real property located in this state that is improved by a one- to four-family dwelling or a manufactured home, as defined by 24 CFR 3280, either of which is intended to be the borrower's primary residence.
(23) "Subsidiary" means an organization that is wholly owned or controlled by a financial institution.
(24) "Third-party fees" means fees received by a mortgage lender as part of the mortgage loan application process that are designated to be paid to a person other than the mortgage lender. These fees include but are not limited to credit reports, property appraisals, title searches, title insurance, and attorney, survey, or private mortgage insurance fees.
(25) "Ultimate equity owner" means an individual who, directly or indirectly, owns or controls an ownership interest in a corporation, a foreign corporation, an alien business organization, or any other form of business organization, regardless of whether the individual owns or controls the ownership interest, individually or in any combination, through one or more individuals or one or more proxies, powers of attorney, nominees, corporations, associations, partnerships, trusts, joint-stock companies, or other entities or devices.
History: En. Sec. 3, Ch. 369, L. 2007.
