What licensing terms must Utah mortgage professionals understand?

• A. Utah requires both company and individual licenses; the PLM designation indicates supervision of the mortgage business
• B. Only company license is required
• C. Only individual license is required
• D. PLM designation is optional and has no meaning

Answer: (A)

Utah requires both the business and the people who run and originate loans to be licensed. The PLM designation, Principal Lending Manager, is the supervisory role within the licensed mortgage company, responsible for overseeing the mortgage business, ensuring compliance with laws, and guiding loan originators. This ensures there’s accountability and proper oversight for all origination activity. Without a company license, the business can’t operate; without individual licenses for the people who originate loans, those activities can’t be performed legally; and the PLM designation signifies the required supervision role, making this combination the correct understanding of Utah licensing terms.