DIVISION of REAL ESTATE. NEWSA publication for Utah s real estate,

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1 DIVISION of REAL ESTATE Uah! NEWSA publicaion for Uah s real esae, appraisal, and morgage professionals. Jon M. Hunsman, Jr., Governor Francine A. Giani, Execuive Direcor Mark B. Seinagel, Division Direcor SECOND QUARTER 2009 Real Esae Licensee Educaion is Changing! SAFE Morgage Licensing Ac Updae The 2009 General Session of he Legislaure was again a good one for he real esae indusry hanks o he ireless effors of he Uah Associaion of Realors, local Boards of Realors, he Real Esae Commission, and many wonderful legislaors. Among he mos imporan changes during he session, your real esae license educaion is improving. New Prelicense Educaion Hours for Sales Agens Beginning January 1, 2010, new applicans for a real esae license will be required o complee a minimum of 120 hours of prelicensing educaion. The Real Esae Commission and Division of Real Esae will deermine he ouline for he modified curriculum in he coming monhs. Individuals who began heir educaion prior o January 1, 2010 will be permied o submi 90 hours if he educaion is compleed and heir licensing applicaion is submied o he Division by March 31, New Coninuing Educaion Hours for All Real Esae Brokers and Sales Agens Real esae licensees will soon be required o complee 18 hours of coninuing educaion, raher han he 12 required now. In order o assis you in preparing for he increase, he requiremen will no become effecive unil January 2010 license renewals. Please spread he word around your office so your colleagues are prepared o renew heir license in 2010 and beyond. coninued on page 3 As explained in previous newsleers, morgage licenses will be affeced by las year s passage of he federal SAFE Morgage Licensing Ac. You will coninue o hold a Uah license, bu many of he licensing funcions will be performed hrough he Naionwide Morgage Licensing Sysem and Regisry (NMLS&R). The changes required by SAFE affec nearly every aspec of your morgage license. Morgage licensees who renewed heir license in 2008 should have already received a new license wih a December 31, 2010 expiraion dae. If you have no, PLEASE LET US KNOW! Morgage licenses wih 2009 expiraions will receive a license ha expires on December 31, 2010, regardless of he dae of your applicaion or renewal during coninued on page 17 In This Issue From he Direcor s Desk New Agen Sales Course Legislaure Updae Appraiser On-line Renewal Shor Sales: Par II Guiding Principles of USPAP Licensing Acions & Disciplinary Sancions Saff Spoligh Kagie Korner Riverbooms Verdic New Commissioner & Board Member Reporing Bankrupcy SAFE Morgage Licensing Ac Updae Educaional Requiremens Abandoned Morgage Records Housing Relief Gran

2 2 Uah Division of Real Esae From he Direcor s Desk During he early 1970s, my parens decided o build heir dream home. They purchased a couple of acres in he beauiful rolling foohills of California s Sierra Nevada Mounains. Everyhing looked like i would work ou perfecly. The day afer my parens signed Mark B. Seinagel he consrucion loan documens, he governmen removed price conrols off building maerials. From ha poin on, my parens encounered one difficuly afer anoher, from a recession o unusually inclemen weaher. They compleed he home aking much longer han anicipaed, spending more han expeced and finishing he home wih lower qualiy building producs. My parens had o pracically give away he home in order o survive. The above sory has been old and reold in my family lore for many years, so I recenly verified is auheniciy wih my moher, who sill lives in norhern California. She old me she sill ges a pi in her somach whenever she remembers i. This marke is no he firs ime he economy and he housing marke have been baered, bu i is a difficul ime o be in he real esae marke. Even he mos opimisic economiss have acceped ha he marke is in a painful recession. Keep Up The Hard Work! How Bad is he Economy, Really? Houson, Janice, CPPA (hp:// id= &u=cppa&show_issue_dae=f&issue_id= &lid=bfbmrh5&uid=b6d6h4gw) A he Division, we have noiced he pain you are feeling hrough lower licensing numbers, increased bankrupcies, and emoional calls. Our primary goal righ now is o keep fulfilling he Division s mission. Jus like you press forward when he marke is ough, he Division can qui is licensing, educaion, and enforcemen effors. We all mus work harder and smarer, while hoping for he end of he downurn. Back o my personal experience: my wife and I jus compleed building a new home. I is a dream home for us. However, even hough we were represened by a grea agen, we have been unable o sell our exising home. Like many ohers, he marke is placing a burden on us. Even wih our sresses, we know ha Americans and he marke will pull hrough his recession. Please coninue o do wha you do well. The marke will rebound. Unil i does, he Division will coninue o ry o make hings easier for hose of you rying o serve well your cliens and he public. And yes, we mus coninue o make hings harder on he bad guys. Afer all, you are he only reason he Division exiss. If you would like some aricles ha will help you keep hings in perspecive, I recenly read a couple: This Too Shall Pass Gochnour, Naalie, Sal Lake Chamber of Commerce: (hp:// id= &u=cppa&show_issue_dae=f&issue_id= &lid=bfbmrh5&uid=b6d6h4gw)

3 2nd Quarer New Agen Sales Course Real esae agens ha received heir iniial sales agen licenses on or afer July 1, 2007 (new agens), are required o complee he 12-hour New Agen Sales Course For Real Esae Agens during heir original licensure. This course was creaed o assis new agens during he criical ransiion period afer licensing. New agens are uniquely challenged during his iniial licensing sage. This course was prepared o assis hose individuals making his ransiion; and o help hem in dealing wih he realiies hey are exposed o as newly pracicing licensees, compleion of his course will fulfill he new agens CE requiremen during heir original licensing period. A heir iniial license renewal, new agens renewing on or afer July 2009 will be required o provide proof of successful compleion of his specific course. There are no subsiue courses ha may be aken in place of he New Agen Sales Course. Credi for his course mus be regisered in he licensees CE Courses Compleed secion of heir individual On-Line RELMS accoun o allow a imely license renewal. New agens needing his course can view a lis of approved providers a: hp:// /real_educaion.hml. Sales agens (licensed before July 1, 2007) or brokers may also ake his course o fulfill heir enire 12-hour CE renewal requiremen including he required Core Topic Courses. Indusry commens from aendees include a beer undersanding of he proper use of, coninued from page 1 ON-LINE RELMS Available Online Services: Renew License Change Address Change License Saus Change Affiliaion Manage Company Roser Order Duplicae License View CE Courses Taken View and Order License Hisory (including possible ways in which licensees f r e q u e n l y g e i n o r o u b l e ), a n d h e devasaing consequences fraud have had on our real esae and morgage communiies. This 12-hour course has proven o assis new agens in dealing wih hese challenges, while also encouraging licensees ha compeen, hard working and ehical praciioners can succeed. Improved Coninuing Educaion The Division of Real Esae and Real Esae Commission will also be evaluaing mehods o improve he qualiy of coninuing educaion and increase he selecion of opics for your coninuing educaion. Successful Legislaive Session Thank you again o hose who spearheaded he effor o improve he professionalism of he real esae indusry by increasing he quaniy and qualiy of educaion ha real esae licensees receive. forms conracs, properly pricing properies for sale sae laws federal laws fraud The Division and Commission would appreciae your commens and suggesions as hey evaluae he changes o real esae license educaion, boh prelicense and coninuing educaion. Please submi your commens o realesaeeducaion@uah.gov.

4 4 Uah Division of Real Esae 2009 Uah Sae Legislaure Licensing Updae The Uah Sae Legislaure recenly compleed one of is mos difficul sessions in recen hisory. Legislaors were forced o make significan budge cus o sae programs, including he Division of Real Esae. However, hey also passed many good pieces of legislaion ha will affec you and your license. I highligh some of he changes below, Real Esae. Wih he passage of House Bill 86, new applicans for a real esae license will be required o complee a minimum of 120 hours of prelicensing educaion beginning in January Also beginning in January 2010, all licensees will be required o complee 18 hours of coninuing educaion, raher han he 12 required now. You can find a brief explanaion of changing educaion hours on pages 1 and 18. Appraisers. Perhaps he bigges change affecing appraisers will be he regulaion of appraisal managemen companies (AMC). The Real Esae Appraiser Licensing and Cerificaion Board worked closely wih he Uah Associaion of Appraisers and he Appraisal Insiue o creae and suppor House Bill 152, which requires he Division and Appraisal Board o regulae AMC's. The Division will work during he year o idenify AMC's and ransiion hem ino heir newly required regisraion. Morgage. Perhaps morgage licensees are ired of hearing abou he SAFE Ac. Exising morgage licensees will be required o comply wih he SAFE Ac by he end of The Uah Sae Legislaure passed Senae Bill 31, allowing he Division o ransfer individuals ono he Naionwide Morgage Licensing Sysem by January 1, You can find an updae on he implemenaion of SAFE on page 1. Timeshare. Timeshare regisrans are subjec o licensing laws similar o he Division s oher licensing groups. A represenaive from he imeshare indusry requesed ha he Division permi salespersons o regiser every wo years, raher han he curren annual renewal. Beginning his year, imeshare regisrans will obain a wo-year regisraion. Budge. The Division is learning how o do more wih less, as we know you are. We are currenly evaluaing mehods o beer fulfill Division mandaes wih a leaner saff. Governor Hunsman and legislaive leadership have charged each agency wih finding mehods o decrease coss and become more efficien. A few efficiencies being considered by he Division currenly include: Seing a deadline when all licensees will be required o renew licenses online Beginning o provide he newsleer elecronically, raher han in prin forma Permiing online complain submissions We welcome your suggesions for improved Division efficiencies a realesae@uah.gov. We hank he Legislaure and Governor for supporing he Division of Real Esae. You can access a copy of he bills and an expanded summary of all sauory changes affecing your license by visiing hp:// Appraisers May Now Renew Their Licenses On-Line The Division of Real Esae is pleased o announce ha appraisers are now able o renew heir licenses on he Real Esae License Managemen Sysem (RELMS). Beginning March 2009 appraisers renewing heir licenses have he capabiliy o easily renew heir licenses on-line. This convenien sysem provides appraisers he flexibiliy o renew from heir home or office wihou assembling paper documens for submission o he Division. The Division is pleased ha appraisers now have his renewal feaure enabling hem he license renewal advanages provided by his ime saving process.

5 2nd Quarer Shor Sales: Par II In he Division s January newsleer, loan modificaions and shor sales were addressed. As saed in he las newsleer, shor sale negoiaions clearly fall under he legal definiion of aciviies ha require a real esae license. Because he Division coninues o receive a high number of calls relaed o shor sales, below are addressed addiional issues ha have been raised. Q: I am beginning o see properies adverised for $10 or some oher amoun ha he principal or he licensee knew would never be acceped. Isn his a violaion of he law? A: Nohing in he law prohibis a propery owner from markeing a propery for a very low amoun. However, Uah law makes i unlawful for a person wih a real esae license o adverise he availabiliy of real esae or he services of a licensee in a false, misleading, or decepive manner. (Uah Code Annoaed (13)) If any par of an adverisemen is false or misleading, an individual s license may be in jeopardy. Q: I am being conaced by unlicensed individuals who wan me o assis hem wih shor sales, bu I am wary ha hey are performing aciviies ha require a license. Can you clarify for me wha aciviies in relaion o a shor sale would require a license? A: Mos real esae licensees are familiar wih he primary areas ha require a license: buying, selling, exchanging, aucioning, ec. There is anoher ha isn referenced as ofen: a person mus be licensed if wih he expecaion of receiving valuable consideraion, [hey] assis or direc in he procuremen of prospecs for or he negoiaion of he [buying, selling, exchanging, aucioning, ec] (See Uah Code Ann (12)) In oher words, even if an individual is no he primary person represening a clien in he buying, selling, exchanging, aucioning, or oher aciviy ha requires a license, hey sill mus be licensed if hey assised in he negoiaion or procuremen of prospecs. Q: Can a real esae licensee represen someone who is markeing a propery ineres hey do no ye hold? A: Yes. A licensee may marke a propery ineres he principal does no own, as long as adequae disclosure is provided during markeing. In addiion, he curren owner of he propery ineres mus give permission o marke he ineres. A imes, he deails abou wheher he propery owner has given permission may be difficul o ascerain, paricularly when a propery is bank-owned. Speak wih your legal counsel if you have quesions abou wheher your markeing complies wih wrien agreemens. Q: Wha should a real esae licensee do when asked o assis in a ransacion ha places a propery ino rus? Are hose ypes of ransacions always fraudulen? A: A propery owner may place a propery ino a rus. However, i is likely ha he placemen of he propery in rus will rigger he due on sale clause of he morgage. Many ask hese quesions worried abou wheher hey are faciliaing fraud. Good agens ask good quesions when a deal doesn feel righ. Speak wih your broker or legal counsel if you have quesions abou a paricular deal. The Division appreciaes he vas majoriy of licensees who are aemping o provide a good service o he public, while also complying wih he law.

6 6 Uah Division of Real Esae The Guiding Principles of USPAP are Honesy, Compeency and Ehical Behavior Craig Morley, Vice Chair Appraiser Board The financial marke meldown is due in par o violaions of hese characerisics in all segmens of he financial indusry. Appraisers are he wachman for he financial indusry. I is difficul for fraud o ake place when appraisers are doing heir job in compliance wih USPAP. Appraisers will be ineresed o know ha he Uah Associaion of Appraisers (UAA) sponsored a bill o regulae Appraisal Managemen Companies (AMC's). The bill can be seen a hp://le.uah.gov/~2009/bills/ hbillenr/hb0152.pdf The bill is inended o require all AMC's doing more han en ransacions in Uah o be regisered in he sae. Regisraion will allow regulaory oversigh o see ha AMC's do business in an ehical manner. However, appraisers are ulimaely responsible for he work produc hey provide. Many appraisers have expressed concerns and frusraion wih large AMC's. Se fees offered by AMC's are a regular complain. The division of real esae can no regulae fees. Our concern is ha regardless of he fee being paid, you are required o complee he scope of work agreed o. The scope of work should dicae he fee, no he fee dicaing he scope of work. If you don' believe you can complee he work required for he fee offered, don' accep he assignmen. Shor cus aken by appraisers because of low fees will resul in disciplinary acion aken agains hose appraisers. Appraiser Compeency. Appraisers have he primary responsibiliy o see ha hey are compeen o complee appraisal assignmens as oulined in USPAP. Residenial appraisers using Fannie Mae forms have specific compeency cerificaions ha hey mus comply wih. Some appraisers are acceping assignmens in areas where hey do no rouinely do work and do no have access o public records or lising and sales daa. Several appraisers have been disciplined for acceping assignmens for which hey are no geographically compeen or compeen for he propery ype hey are appraising. Honesy. Ehical violaions of USPAP are he mos serious infracions as hey deal wih honesy. Some of he issues include appraisers working wih rainees who sign cerificaions ha require he signing appraiser o inspec he propery, bu hey do no. There seems o be an ongoing misundersanding ha once he rainee has me he required supervised inspecions ha he supervising appraiser no longer needs o inspec he propery. The appraisal rules are designed o accommodae a broad base of appraisal assignmens and appraisal pracices. Residenial appraisers using repor forms ha require a specified scope of work mus complee he work specified. Many appraisers seem o hink ha hey don' need o inspec he subjec propery or comparable sales even hough hey sign a cerificaion saing ha hey have. This is a blaan USPAP violaion. The appraiser has cerified ha hey have done work ha in fac hey have no compleed. Appraisers involved wih his pracice will be disciplined. Ehics. Misleading repors are he single bigges USPAP enforcemen violaion. Common problems include incorrec informaion being repored in he appraisal repor. Some of hose iems include omied, incomplee or incorrec informaion, such as incorrec zoning informaion. Some appraisers are being asked o engage in unehical aciviy by poenial cliens. Examples: 1) Appraisers are offered appraisal assignmens only if hey can arrive a a predeermined value when he appraisal ordered. 2) Appraisers accep assignmens where heir fee is based on an even such as a closing. 3) Appraisers manipulae he analysis o fall wihin prescribed clien guidelines, i.e. ne and gross adjusmens. 4) Appraisers develop value ha favors he clien s ineres. Appraisers have been plagued by cliens no waning o order or pay for appraisals ha don' favor heir posiion. All appraisers should know ha hey should no accep hese kinds of assignmens. However, in a volaile marke underwriing guidelines have become more sringen and here is increased pressure on

7 2nd Quarer appraisers o force he appraisal repor o fall wihin he clien guidelines regardless of he facual daa. Incorrec Values. There seems o be a prevailing aiude in he appraisal communiy ha i is beer o be low han high in he final value conclusion. The fac is ha i is equally bad o be eiher low or high. Fraud can be perpeuaed wih a low appraisal as well as a high appraisal. Lenders have complained ha some appraisers are relying on disressed propery sales o develop he final opinion of value giving less weigh o open marke ransacions. Appraisers should be aware of wha definiion of marke value is being used and ensure ha he opinion of value hey develop is consisen wih he definiion of value. Some cliens will reques alernaive values referred o as a "quick sale" or "liquidaion" value ha is based on specified markeing imes. Make sure ha you define he value being developed and make sure ha your analysis is consisen wih he definiion of value. I is misleading o develop a liquidaion value based on disressed propery sales when he definiion of value used for marke value's as ypically defined. In some areas he only marke is disressed propery sales. Make sure ha all marke condiions and facors are considered in developing value and be clear wha value is being developed. No every sale ha akes place represens marke value. Verify your daa and make sure ha you know he circumsances associaed wih he sales daa used. Massaged Values. Appraisers who massage appraisal analysis o fall wihin adjusmen guidelines are producing misleading appraisals. Curren issues include accuraely reporing marke condiions. Many cliens prefer o have he appraiser indicae ha he marke is sable when in fac he marke is declining. Make sure ha you have credible suppor in making hese deerminaions. We find some cases where appraisers make no adjusmens because i looks beer in he repor and keeps he analysis wihin clien adjusmen guidelines. I is unehical no o repor or no o adjus for relevan differences beween he subjec and comparable sales resuling in a misleading appraisal resul. Some cliens are asking appraisers o develop heir final opinion of value based on he lowes wo comparable sales. This is a complee violaion of appraisal principles as he final opinion of value should be based on sales ha bes represen he subjec propery. Conclusion. Changes appear o be coming in he way he morgage indusry will do business. Appraisers need o say abreas of indusry changes and coninue o sharpen heir appraisal skills. There has never been more need for compeen, hones, ehical appraisers han now. Appraisers who srive for hose aribues will coninue o enjoy a rewarding career in he appraisal indusry. DIVISION of REAL ESTATE Uah! NEWS Division Direcor...Mark B. Seinagel Edior/Conribuor... Mark Fagergren Conribuor/Layou... Tiffeni Wall Conribuor...Julie Price Conribuor...Van Kagie 2009 Published by Uah Division of Real Esae Deparmen of Commerce 160 Eas 300 Souh (84111) PO Box Sal Lake Ciy, UT (801) main line Real Esae Commissioners Doyle C. "Sam" Sampson, Jr., Chair Gary R. Hancock, Vice Chair Kay R. Ashon H. Blaine Walker Sephanie Tugaw-Madsen Residenial Morgage Regulaory Commissioners Rodney "Buch" Dailey, Chair Heaher MacKenzie, Vice Chair Maralee Jensen Lance Miller Brigg Lewis Appraiser Licensing and Cerificaion Board Members Ronald M. Smih, Chair Craig Morley,Vice Chair Debra Sjoblom Paul Throndsen

8 8 Uah Division of Real Esae Licensing Acions and Disciplinary Sancions APPRAISER Please noe ha here are 30 days afer he order dae for a licensee or an applican o file a reques for agency review of he order, and ha here are 30 days afer he issuance of an order on review for a licensee or an applican o file a peiion for judicial review. Some of he orders lised may be wihin hose appeal periods. CLOWARD, STEVE W., Sae-Licensed Appraiser, Orem, UT. Agreed o pay a $10, civil penaly and he revocaion of his appraiser license. He also agree o never apply for any appraiser license in he Sae of Uah, or work in or for any appraiser business in he Sae of Uah in a December 10, 2008 Sipulaion and Order. Mr. Cloward violaed USPAP, he Uah Real Esae Appraiser Licensing and Cerificaion Ac, and appraiser adminisraive rules, and he rus of people and vicims who los hundreds of housands of dollars because of his acions. While acing as a co-conspiraor in he Provo River Boom scandal, Mr. Cloward over inflaed appraisals on subjec properies. Case # AP40837, AP40838, AP40839, AP40840, AP DUNLOP, JOSEPH, Sae-Cerified General Appraiser, Sandy, UT. Mr. Dunlop surrendered his cerificaion on July 17, 2008 while under invesigaion by he Division. The Division acceped his wrien surrender while ongoing invesigaions were under way for various violaions of USPAP, sae law, and adminisraive rules. GRAY, THOMAS R., Sae-Cerified Residenial Appraiser, Souh Jordan, UT. Agreed o pay a $10, civil penaly and no supervise any oher real esae appraiser or rainee for a hree year period in a December 10, 2008 Sipulaion and Order. Mr. Gray had employed an unregisered, unclassified, and unlicensed person o assis wih he preparaion of a single family appraisal repor. Mr. Gray eleced o pay he person wih a fee spli, based on he amoun of fee billed o he clien. The person receiving paymen was no regisered, unclassified, or licensed a he ime he appraisal was compleed. In performing he subjec propery single family appraisal repor, Mr. Gray violaed USPAP, as well as numerous rules and saues. The resuling appraisal repor did no provide a professional analysis of he subjec propery s acive and curren lising hisory, shor sale saus, or he impac of he lising aciviy wih regard o he subjec propery s curren value. Furhermore, Mr. Gray failed o properly analyze he acual lising hisory of he subjec propery as repored in he original subjec appraisal repor. Case # AP HANSEN, STEVEN W., Sae-Cerified Residenial Appraiser, Sal Lake Ciy, UT. Agreed o pay a $7, civil penaly and ake and pass a 14 hour USPAP Course in a December 10, 2008 Sipulaion and Order. Mr. Hansen violaed USPAP in he appraisal of a single family home by using comparable properies ha were superior in qualiy, size, locaion, in he sales comparison analysis secion of he Appraisal Repor. One comparable was ouside he subjec s area. Mr. Hansen negleced o use comparables ha were available wihin he subjec s immediae neighborhood boundaries. Case # AP JOHNSON, PAMELA, Sae-Cerified Residenial Appraiser Renewal Applican, Draper, UT. Renewal applicaion for sae-cerified residenial appraiser was exended unil June 30, 2009 in a December 10, 2008 Order. Ms. Johnson mus provide he Division an appraisal log of all appraisals compleed by her beween January 1, 2007 and December 10, 2008, and furher she mus submi o he Division by February 15, 2009 he complee work files for four appraisal assignmens requesed by he Division. A member of he Board or Appraiser Experience Review Commiee will review he work files and Ms. Johnson will be noified of he Commiee s final decision in his case.

9 2nd Quarer MORTGAGE Ms. Johnson had numerous acions aken by he Georgia Real Esae Appraiser Board. Ms. Johnson surrendered her Georgia appraiser license and he Georgia Real Esae Appraiser Board subsequenly revoked ha license. SAMIMI, KAMYAR, Sae-Cerified Residenial Appraiser by Reciprociy Applican, Sal Lake Ciy, UT. Applicaion for sae-cerified residenial appraiser by reciprociy was graned in a February 4, 2009 Order. Mr. Samimi is under invesigaion by he Sae of Washingon and mus noify he Division wihin en business days of any and all communicaions o and from he Sae of Washingon Deparmen of Licensing regarding his cerified residenial real esae appraiser license. The Division will monior he progress of he hree curren invesigaions in Washingon Sae, advising he Board as appropriae. SMITH, CRAIG, Sae-Cerified Residenial Appraiser Renewal Applican, Bedford, WY. Renewal applicaion for sae-cerified residenial appraiser graned bu placed on probaion for he period of one year in a December 17, 2008 Order. Mr. Smih enered ino a sipulaion and order wih he Idaho Sae Board of Real Esae Appraisers. The sipulaion included an adminisraive fine, invesigaive coss, coninuing educaion, and one year probaion. Mr. Smih mus noify he Division when he complees his educaion and probaion requiremens wih Idaho. WEED, KEVIN B., Sae-Cerified Residenial Appraiser Renewal Applican, Park Ciy, UT. Renewal applicaion for sae-cerified residenial appraiser graned in a December 17, 2008 Order. Mr. Weed enered ino a sipulaion and consen order wih he Idaho Sae Board of Real Esae Appraisers. The sipulaion included an adminisraive fine, invesigaive coss, coninuing educaion, and one year probaion. Mr. Weed will submi o he Division evidence ha he has complied wih he Idaho sipulaion. Please noe ha here are 30 days afer he order dae for a licensee or an applican o file a reques for agency review of he order, and ha here are 30 days afer he issuance of an order on review for a licensee or an applican o file a peiion for judicial review. Some of he orders lised may be wihin hose appeal periods. ASAY, DALE, Associae Lending Manager and Morgage Pre-License Insrucor, Orem, UT. Agreed o pay a $10, civil penaly and he revocaion of his associae lending manager license and he revocaion of his morgage insrucor license for wo years. He was graned a morgage officer license bu his license was placed on probaion for he remainder of his licensing erm in a January 7, 2009 Sipulaion and Order. Mr. Asay ook a morgage loan applicaion from a borrower who he knew hrough a work associaion. As he loan was being processed i became apparen ha in order o ge he loan approved wih accepable raios he saed income would have o be increased. Mr. Asay wen ahead and increased he income o ge he deal o work. Case # MG BEACHAM, RYAN, Morgage Officer License Applican, Huningon Beach, CA. Condiional license issued on May 2, 2008, was revoked for failing o disclose a pas criminal hisory. In a December 16, 2008 Order on Appeal, he Division reaffirmed is decision and he license revocaion was upheld. Case # MGFP BENNETT, MICHAEL, Principal Lending Manager Renewal Applican, Enoch, UT. Renewal applicaion for principal lending manager license was graned bu placed on probaion for he enire renewal period in a January 27, 2009 Order for a respass and failure o ag game convicion. BRUMBAUGH, BRAD, Morgage Officer License Renewal Applican, Wes Jordan, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a December 4, 2008 Order for driving wihou proper insurance. coninued on nex page

10 10 Uah Division of Real Esae Disciplinary Sancions Coninued from page 9 DEAN, DANIELLE E., Morgage Officer License Renewal Applican, Norh Sal Lake, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a December 11, 2008 Order for a DUI convicion. DEAN, PERVAIZ, Morgage Officer License Renewal Applican, Ogden, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a January 27, 2009 Order for driving wihou regisraion and operaing a vehicle wihou insurance. ERICKSON, RUSSELL, Morgage Officer License Applican, Sal Lake Ciy, UT. Applicaion for morgage officer license graned bu placed on probaion for he enire iniial licensing period in a February 12, 2009 Order for enering ino a diversion agreemen for impaired driving. FARR, DEBORAH KAYT, Morgage Officer License Renewal Applican, Sal Lake Ciy, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a December 11, 2008 Order for a DUI convicion. HANSEN, GEOFF E., Morgage Officer License Renewal Applican, Brigham Ciy, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a January 27, 2009 Order for driving wihou insurance. HOBBS, ALLISON H., Morgage Officer License Renewal Applican, Orem, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a January 27, 2009 Order for a reail hef convicion. KENNICOTT, JESSE, Morgage Officer License Reinsaemen Applican, Murray, UT. Reinsaemen applicaion for morgage officer license graned bu immediaely suspended for 60 days and hen placed on probaion for he remaining erm of licensure in a February 2, 2009 Order for numerous driving convicions and cour warrans. KINGDON, MICHAEL A., Morgage Officer License Renewal Applican, Bouniful, UT. Renewal applicaion for morgage officer license graned bu placed on probaion for he enire renewal period in a January 27, 2009 Order for a DUI convicion. KOSKAN, KEITH, Principal Lending Manager, Smihfield, UT. Agreed o pay a $2, civil penaly in a January 7, 2009 Sipulaion and Order. Mr. Koskan failed o ake all his morgage loan files wih him when he relocaed his office. These files were found by he landlord in he office space he previously rened. Case # MG MUNFORD, DANIEL RAY, Morgage Officer License, Sandy, UT. Agreed o pay a $2, civil penaly in a December 3, 2008 Sipulaion and Order. Mr. Munford was paid referral fees on a leas one occasion for loans ha he did no close. Case # MG MYERS, THOMAS, Principal Lending Manager Renewal Applican, Sandy, UT. Renewal applicaion for principal lending manager graned bu placed on probaion for he enire renewal period in a December 4, 2008 Order for enering ino a plea in abeyance agreemen for disorderly conduc and domesic violence. NUNLEY, JASON R., Morgage Officer License Applican, Riveron, UT. Applicaion for morgage officer license graned bu placed on probaion he enire iniial licensing period in a January 5, 2009 Order for driving wihou insurance. REDA, WISAM, Morgage Officer License Applican, Dearborn Heighs, MI. Condiional license issued on July 16, 2008, was revoked for failing o disclose a pas criminal hisory. In a December 16, 2008 Order on Appeal, he Division reaffirmed is decision and he license revocaion was upheld. Mr. Reda may reapply for licensure in one year, a which ime his issue will be readdressed. Case # MGFP08223.

11 2nd Quarer ROESNER, MANFRET O., Morgage Officer License Applican, Souh Jordan, UT. Condiional license issued on Sepember 26, 2008, was revoked for failing o disclose a pas criminal hisory. In a December 4, 2008 Order on Appeal, he Division reaffirmed is decision and he license revocaion is upheld. Mr. Roesner may reapply for licensure in one year, a which ime his issue will be readdressed. Case # MGFP SANTOLI, MICHAEL B., Principal Lending Manager Applican, Scosdale, AZ. In an Amended Order daed December 4, 2008, Applicaion for principal lending manager graned wihou resricion. The Amended Order supersedes a prior order daed November 4, 2008 placing his license on probaion. SELLENEIT, JADENE, Morgage Officer License Applican, Kaysville, UT. Applicaion for morgage officer license graned bu placed on probaion for he enire iniial licensing period in a December 11, 2008 Order for a DUI convicion. SHEPHERD, CHRISTY A., Morgage Officer License Applican, Farmingon, UT. Condiional license issued on Augus 20, 2008, was revoked for failing o disclose a pas criminal hisory. In a December 11, 2008 Order on Appeal, he Division reaffirmed is decision and he license revocaion was upheld. Ms. Shepherd may reapply for licensure on or abou November 3, 2009, a which ime his issue will be readdressed. STANLEY, THOMAS C., Principal Lending Manager, Midvale, UT. Agreed o pay a $20, civil penaly in a February 4, 2009 Sipulaion and Order. Mr. Sanley rened office space and hen laer relocaed his office o a differen locaion. When he landlord was re-rening he space he discovered here were morgage loan files remaining in he empy space. Many files were no kep in accordance wih Uah Code Annoaed 61-2C-302 record requiremens. Case # MG TUELLER, KERI A., Morgage Officer License Applican, Taylorsville, UT. Applicaion for morgage officer license graned bu placed on probaion for he enire iniial erm of licensure in a December 11, 2008 Order for operaing a vehicle wihou insurance and driving on a suspended license. WALLACE II, STEVEN, Morgage Officer License Applican, Sandy, UT. Applicaion for morgage officer license graned bu placed on probaion for he enire iniial licensing period in a December 4, 2008 Order for enering ino plea in abeyance agreemen of disorderly conduc and failure o appear in cour. WHITTAKER, DAVID, Morgage Lending License Applican, S. George, UT. Condiional license issued on July 18, 2008, was revoked for failing o disclose a pas criminal hisory. In a January 27, 2009 Order on Appeal, he Division reversed is decision. Mr. Whiaker had a reasonable good faih belief ha he had no criminal hisory o reveal. Mr. Whiaker s applicaion was graned. WHITTAKER, TODD HUGH, Associae Lending Manager, Coonwood Heighs, UT. Agreed o pay a $2, civil penaly and he revocaion of his associae lending manager license in a February 4, 2009 Sipulaion and Order. Mr. Whiaker represened himself as a parner in Uah Morgage and was able o convince many individuals o lend him money in exchange for a secured rus deed ha would be recorded. Mr. Whiaker was no a parner in Uah Morgage and many individuals los he money hey invesed wih Mr. Whiaker. Mr. Whiaker may no reapply for any ype of professional license wih he Division for a five year period, a which ime a hearing will be held. Case # MG coninued on nex page

12 12 Uah Division of Real Esae Disciplinary Sancions Coninued from page 11 REAL ESTATE Please noe ha here are 30 days afer he order dae for a licensee or an applican o file a reques for agency review of he order, and ha here are 30 days afer he issuance of an order on review for a licensee or an applican o file a peiion for judicial review. Some of he orders lised may be wihin hose appeal periods. BELCHAK, THOMAS A., Principal Broker Renewal Applican, Wes Jordan, UT. Renewal applicaion for principal broker s license graned bu placed on probaion he enire erm of renewal in a December 11, 2008 Order for a criminal respass convicion. BROSIG, ALIXANDER L., Principal Broker Reinsaemen Applicaion, Sandy, UT. Reinsaemen applicaion for principal broker s license graned, bu immediaely suspended for 30 days, and hen placed on probaion for he remaining period of reinsaemen in a January 27, 2009 Order, due o a probaion violaion and a disorderly conduc convicion. CLARKE, RONALD K., Real Esae Broker, Provo, UT. In a February 4, 2009 Order, Clark was ordered o pay a $22, civil penaly for 44 sauory and rule violaions. The Order revoked his real esae broker s license, and prohibis him from reapplying for a new license unil five years afer his prison senence and probaion have been successfully compleed. Upon any reapplicaion, Mr. Clark is required o appear before he Real Esae Commission a a hearing. Mr. Clarke enered false Muliple Lising Service daa for properies in he Provo River Booms area resuling in false inflaion of sales prices of properies. He pursued a coninued and flagran course of misrepresenaion o he public, real esae profession and oher indusry professionals, who rely on MLS informaion in forming marke valuaions. Mr. Clarke s acions were deceiful, dishones, and acively advanced fraudulen informaion. His acions were performed for personal economic gain a significan risk o he public. Case # RE CROSBIE, SCOTT, Principal Broker Applican, Denver, CO. Condiional license issued on March 5, 2008, was revoked for failing o disclose a pas criminal hisory. In a January 5, 2009 Order on Appeal, he Division reversed is decision because Mr. Crosbie had a reasonable good faih belief ha a he ime of applicaion here was no criminal hisory o reveal. Mr. Crosbie s applicaion is graned. Case # REFP CROSHAW, ALAN L., Sales Agen Renewal Applican, Springville, UT. Renewal applicaion for sales agen license graned bu placed on probaion for he enire erm of renewal in a February 2, 2009 Order, due o his enering ino a plea in abeyance agreemen of a sexual soliciaion, a class B misdemeanor. DAY, TYSON, Sales Agen Renewal Applican, Moab, UT. Renewal applicaion for sales agen license graned bu placed on probaion for he enire renewal period on a February 25, 2009 Order for enering ino a plea in abeyance agreemen of public inoxicaion and disorderly conduc. DAYLEY, RODNEY, Sales Agen Applican, Lehi, UT. Condiional license issued on June 26, 2008, was revoked for failing o disclose a pas criminal hisory. In a December 11, 2008 Order on Appeal, he Division reversed is decision because he had a reasonable good faih belief ha here was no criminal hisory o reveal. Mr. Dayley s applicaion was graned. ECHLIN, JONATHAN D., Sales Agen Applican, Sal Lake Ciy, UT. Applicaion for sales agen license graned bu placed on probaion he enire iniial licensing period in a January 5, 2009 Order for a conrolled subsance convicion. ELLINGSON III, JOHN ROBERT, Sales Agen Renewal Applican, Sandy, UT. Renewal applicaion for sales agen license graned bu placed on probaion for he enire renewal period in a February 25, 2009 Order for expired regisraions, a warran, and several failure o appear convicions. GROGAN, LORI J., Sales Agen Applican, Ogden, UT. Applicaion for sales agen license graned bu placed on probaion for he enire iniial licensing period in a February 23, 2009 Order for alcohol-relaed reckless driving.

13 2nd Quarer HALLMAN, PHILIP L., Sales Agen, Phoenix, AZ. Agreed o pay a $7, civil penaly, surrender his sales agen license, and no apply for a real esae license in he Sae of Uah for a hree year period in a December 17, 2008 Sipulaion and Order. Mr. Hallman worked wih many homeowners in shor sale siuaions in which he helped hem ou of heir financial problems by negoiaing wih he banks in heir behalf. In one insance, he received a full commission check wihou paying he brokerage or lising agen. In ha same ransacion, Mr. Hallman failed o disclose ha he was a licensee as well as a principal o he ransacion as an officer of Kolob Kapial, LLC. In anoher ransacion he wroe he REPC for his own LLC, which was signed for in he name of anoher principal o he LLC. As a resul Mr. Hallman became an unlawful limied agen by being he lising agen, he selling agen, as well as a principal o he ransacion. Despie being an unlawful limied agen, Mr. Hallman had an Unrepresened Buyer Disclosure a he ime saing he was no represening he LLC or he manager in he ransacion. Furhermore, in he same ransacion Mr. Hallman signed and iniialed he REPC on behalf of his wife and parner of Kolob Kapial, LLC, wihou a duly execued power of aorney. Case # RE HANDY, MARK D., Associae Broker Renewal Applican, Sal Lake Ciy, UT. Renewal applicaion for associae broker license graned bu placed on probaion he enire renewal licensing period in a December 11, 2009 Order for an impaired driving convicion. HARDING, JUSTIN R., Sales Agen Applican, Logan, UT. Applicaion for sales agen license graned bu placed on probaion for he enire iniial licensing erm in a December 11, 2008 Order for a pas criminal convicion. JEFFRESS, JACK M., Sales Agen Applican, Cedar Ciy, UT. Applicaion for sales agen license graned bu placed on probaion he enire renewal period in a December 4, 2008 Order for a disorderly conduc convicion. JUSTENSEN, LARRY SCOTT, Associae Broker Renewal Applican, Kaysville, UT. Condiional license issued on November 4, 2008, graned he applican s renewal reques for a license bu placed he license on probaion for he enire erm of renewal. In a December 11, 2008 Order on Appeal, he Division reaffirmed is decision and he applican s associae broker s license remains on probaion as of November 4, KENDALL, RICHARD RYAN, Sales Agen Renewal Applican, Provo, UT. Renewal applicaion for sales agen license graned bu placed on probaion for he enire period of renewal in a January 5, 2009 Order for enering ino a plea in abeyance agreemen on a DUI. KING, KEVIN P., Sales Agen Applican, Smihfield, UT. Applicaion for sales agen license parially graned bu placed on probaion for he enire iniial licensing period in a February 23, 2009 Order for driving wih a revoked regisraion and driving wihou insurance convicion. KUKASWADIA, FARAZ S., Sales Agen Applican, Murray, UT. Condiional license issued on June 7, 2008, was revoked for failing o disclose a pas criminal hisory. In a December 11, 2008 Order on Appeal, he Division reaffirmed is decision and he license revocaion is upheld. Mr. Kukaswadia may reapply for a license on or abou December 11, MCCLELLAN, RONALD L., Sales Agen Renewal Applican, Wes Valley Ciy, UT. Renewal applicaion for sales agen license graned bu placed on probaion he enire renewal period in a December 11, 2008 Order for an alcohol-relaed reckless driving convicion. MEZA, TORREY J., Sales Agen Applican, S. George, UT. Applicaion for sales agen license graned bu placed on probaion he enire iniial licensing period in a January 27, 2009 Order for a DUI convicion. MURRAY, DANIEL M., Sales Agen Renewal Applican, Sandy, UT. Renewal applicaion for sales agen license graned bu placed on probaion he enire renewal period in a December 11, 2008 Order for enering ino a diversion agreemen on a communicaions fraud charge. coninued on nex page

14 14 Uah Division of Real Esae Disciplinary Sancions Coninued from page 13 ORTEGA, OSCAR F., Sales Agen Renewal Applican, Souh Jordan, UT. Renewal applicaion for sales agen license graned bu placed on probaion he enire renewal period in a February 2, 2009 Order for enering ino a plea in abeyance agreemen on a domesic violence assaul charge. POCOCK, CYNTHIA, Sales Agen Renewal Applican, Hanna Springs, UT. Renewal applicaion for sales agen license graned bu her license will be immediaely suspended for 60 days, and will be placed on probaion he enire renewal period, in a December 4, 2008 Order due o a conrolled subsance convicion. REPASS, THOMAS W., Sales Agen Applican, Presco, AZ. Applicaion for sales agen license graned bu placed on probaion he enire iniial licensing period in a December 11, 2008 Order for a convicion of driving while abiliy impaired. SHAFFER, MARIO, Sales Agen Applican, Sal Lake Ciy, UT. Condiional license issued on February 26, 2007, was revoked for failing o disclose a pas criminal hisory. In a December 11, 2008 Order on Appeal, he Division reversed is decision based on he deerminaion ha Mr. Shaffer had no criminal hisory o disclose. Mr. Shaffer s applicaion was graned. SMITH, V. WAYNE, Sales Agen, Midvale, UT. Agreed o pay a $2, civil penaly in a December 17, 2008 Sipulaion and Order. Mr. Smih managed a renal uni. The enan, on muliple occasions, failed o pay he full ren, or pay on ime. Mr. Smih on muliple occasions forwarded his own money o he landlord o make up he difference beween he full ren and wha he enan paid and hen worked ou repaymen agreemens wih he enan o bring him curren. The enan failed o keep he repaymen agreemens. Mr. Smih admis ha he final monh s ren was colleced and no forwarded o he landlord because Mr. Smih fel he should no ake a loss on behalf of he enan. Case # RE Saff Spoligh Tiffeni Wall Real Esae Educaion Coordinaor Occasionally big hings come in small packages. Tha is definiely he case wih he Division Real Esae Educaion Coordinaor Tiffeni Wall. She is a peie ball of energy ha one encouners whenever hey have quesions or need assisance regarding a coninuing educaion course approval, he whereabous of he nex Division CARAVAN, planning an upcoming Insrucor Developmen Workshop, or perusing he layou of he DRE newsleer. These and a myriad of oher educaion and oureach programs fall under he job descripion of Ms. Wall. Tiffeni came o he Division jus hree years ago afer working 14 years in her previous job wih he Sae Office of Recovery Services. While here, Ms. Wall worked as an invesigaor, manager and ulimaely as an adminisraor of child suppor and paerniy services. The Division was able o convince her o join our saff back in 2006 and we are very pleased wih her abiliies and alens along wih he conagious enhusiasm and energy wih which she accomplishes her various assignmens. Tiffeni and her husband Jay are he proud parens of wo equally energeic and alened boys Logan (13) and Brayden (9). Their family enjoys many aciviies including camping, boaing, and heir annual migraion o heir Hawaiian geaway. The Division appreciaes Tiffeni Wall for her dedicaed and compeen service and is pleased ha she shares her alens wih us and our licensees. The nex ime you open a newsleer, make an reservaion o he Division s annual CARAVAN or have a quesion dealing wih real esae educaion generally you now know who you will be speaking wih. coninued on page 19

15 2nd Quarer KAGIE'S KORNER How o file a complain wih he Division. Many imes a week Van receives quesions on how o file a complain wih he division regarding he hree indusries ha we regulae and wha documens should be submied o he division wih he complain. 1) The division needs a yped or nealy prined, signed, explanaion of he complain (wha happened, who was involved, and when he evens occurred) along wih copies of all available relaed documenaion (conracs, loan documens, disclosures, adverisemens, correspondence, sales daa, appraisals, appraisal repor reviews, ec.). 2) Complains can be mailed, faxed, or hand delivered o: 160 Eas 300 Souh, PO Box , Sal Lake Ciy, UT or ) The division s invesigaions are no all complain driven. All complains, however, are considered valid and reviewed o see if here are violaions of sae saues and rules. I is of grea assisance and saves ime if he complain is as complee as possible. The division's abiliy o invesigae is dependen on cerain informaion. Complains ha do no include some minimal informaion require addiional conac wih he complainan o esablish he grounds for he allegaions. A a minimum we need some of he basics: names, addresses, companies, and descripions of wha has ranspired. The division does he invesigaion, bu i is nice o have a place o sar. An example ha Van likes o use is, if you call 911 o repor a drunk driver, he police ask for informaion (locaion, ime, direcion he car was heading, make, model, and color of he vehicle, and a descripion of he driver) so ha he officer has a saring poin. The same is rue wih he division. We also need a saring poin in order o commence an invesigaion. Sufficien documenaion is exremely imporan o conduc a horough invesigaion. Van Kagie is an experienced invesigaor wih he Division. Thank you for he many calls and quesions from he public and our licensees. Riverbooms Verdic Morgage fraud has been a ho opic for all real esae relaed maers for many years now. Licensees of he Division have expressed grea concern over a few well publicized areas of our sae where fraud is presen. In April a federal judge senenced five individuals for heir par in he Provo River Booms fraud schemes. Each of he individuals involved received he following senences in a Federal Insiuion. Ron K Clarke, a real esae licensee, received 41 monhs Bradley Gran Kichen received 51 monhs Jeffery David Garre 12 monhs Seve Wells Cloward, an appraiser, 33 monhs David R Bolick received 41 monhs Garre was ordered o pay $100,000 in resiuion. The oher four were joinly ordered o pay $5.4 million in resiuion. These criminal convicions were he effor of he Uah Morgage Fraud Task Force, a join federal and sae law enforcemen group. Governor Jon Hunsman and he U.S. Aorney Bre Tolman announced he formaion of he ask force in 2007.