Applicant: means a person applying for a license under this chapter. See Utah Code 61-2c-102
Appraisal: A determination of property value.
Branch office: means a licensed entity's office:
(i)
for the transaction of the business of residential mortgage loans regulated under this chapter;
(ii)
other than the main office of the licensed entity; and
(iii)
that operates under:
(A)
the same business name as the licensed entity; or
(B)
another trade name that is registered with the division under the entity license. See Utah Code 61-2c-102
Business of residential mortgage loans: means for compensation or in the expectation of compensation to:
(A)
engage in an act that makes an individual a mortgage loan originator;
(B)
make or originate a residential mortgage loan;
(C)
directly or indirectly solicit a residential mortgage loan for another;
(D)
unless exempt under Section 61-2c-105 or excluded under Subsection (1)(i)(ii), render services related to the origination of a residential mortgage loan including:
(I)
preparing a loan package;
(II)
communicating with the borrower or lender;
(III)
advising on a loan term;
(IV)
receiving, collecting, or distributing information common for the processing or underwriting of a loan in the mortgage industry; or
(V)
communicating with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan; or
Commission: means the Residential Mortgage Regulatory Commission created in Section 61-2c-104. See Utah Code 61-2c-102
Compensation: means anything of economic value that is paid, loaned, granted, given, donated, or transferred to an individual or entity for or in consideration of:
Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
Concurrence: means that entities given a concurring role must jointly agree for the action to be taken. See Utah Code 61-2c-102
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Dwelling: means a residential structure attached to real property that contains one to four family units including any of the following if used as a residence:
Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
Fraud: Intentional deception resulting in injury to another.
Lending manager: means an individual licensed as a lending manager under Section 61-2c-206 to transact the business of residential mortgage loans. See Utah Code 61-2c-102
Licensee: means a person licensed with the division under this chapter. See Utah Code 61-2c-102
Lien: A claim against real or personal property in satisfaction of a debt.
Loan modification assistance: means , for compensation or with the expectation of receiving valuable consideration, to:
(i)
act, or offer to act, on behalf of a person to:
(A)
obtain a loan term of a residential mortgage loan that is different from an existing loan term including:
(I)
an increase or decrease in an interest rate;
(II)
a change to the type of interest rate;
(III)
an increase or decrease in the principal amount of the residential mortgage loan;
(IV)
a change in the number of required period payments;
(V)
an addition of collateral;
(VI)
a change to, or addition of, a prepayment penalty;
(VII)
an addition of a cosigner; or
(VIII)
a change in persons obligated under the existing residential mortgage loan; or
(B)
substitute a new residential mortgage loan for an existing residential mortgage loan; or
(ii)
as an employee or agent of another person:
(A)
solicit, or offer that the other person will engage in an act described in Subsection (1)(ff)(i); or
(B)
negotiate terms in relationship to an act described in Subsection (1)(ff)(i). See Utah Code 61-2c-102
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
Mortgage loan originator: means an individual who, for compensation or in expectation of compensation:
(A)
(I)
takes a residential mortgage loan application;
(II)
offers or negotiates terms of a residential mortgage loan for the purpose of:
(Aa)
a purchase;
(Bb)
a refinance;
(Cc)
a loan modification assistance; or
(Dd)
a foreclosure rescue; or
(III)
directly or indirectly solicits a residential mortgage loan for another person; and
(B)
is licensed as a mortgage loan originator in accordance with this chapter. See Utah Code 61-2c-102
Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
Prospective borrower: means a person applying for a mortgage from a person who is required to be licensed under this chapter. See Utah Code 61-2c-102
Residential mortgage loan: means an extension of credit, if:
(i)
the loan or extension of credit is secured by a:
(A)
mortgage;
(B)
deed of trust; or
(C)
consensual security interest; and
(ii)
the mortgage, deed of trust, or consensual security interest described in Subsection (1)(oo)(i):
(A)
is on a dwelling located in the state; and
(B)
is created with the consent of the owner of the residential real property. See Utah Code 61-2c-102
Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
Settlement: means the time at which each of the following is complete:
(i)
the borrower and, if applicable, the seller sign and deliver to each other or to the escrow or closing office each document required by:
(A)
the real estate purchase contract;
(B)
the lender;
(C)
the title insurance company;
(D)
the escrow or closing office;
(E)
the written escrow instructions; or
(F)
applicable law;
(ii)
the borrower delivers to the seller, if applicable, or to the escrow or closing office any money, except for the proceeds of any new loan, that the borrower is required to pay; and
(iii)
if applicable, the seller delivers to the buyer or to the escrow or closing office any money that the seller is required to pay. See Utah Code 61-2c-102
State: means :
(i)
a state, territory, or possession of the United States;
charge a fee in connection with a residential mortgage loan transaction:
(i)
that is excessive; or
(ii)
without providing to the loan applicant a written statement signed by the loan applicant:
(A)
stating whether or not the fee or deposit is refundable; and
(B)
describing the conditions, if any, under which all or a portion of the fee or deposit will be refunded to the loan applicant;
(c)
act incompetently in the transaction of the business of residential mortgage loans such that the person fails to:
(i)
safeguard the interests of the public; or
(ii)
conform to acceptable standards of the residential mortgage loan industry;
(d)
do any of the following as part of a residential mortgage loan transaction, regardless of whether the residential mortgage loan closes:
(i)
make a false statement or representation;
(ii)
cause false documents to be generated; or
(iii)
knowingly permit false information to be submitted by any party;
(e)
give or receive compensation or anything of value, or withhold or threaten to withhold payment of an appraiser fee, to influence the independent judgment of an appraiser in reaching a value conclusion in a residential mortgage loan transaction, except that it is not a violation of this section for a licensee to withhold payment because of a bona fide dispute regarding a failure of the appraiser to comply with the licensing law or the Uniform Standards of Professional Appraisal Practice;
(f)
violate or not comply with:
(i)
this chapter;
(ii)
an order of the commission or division; or
(iii)
a rule made by the division;
(g)
fail to respond within the required time period to:
(i)
a notice or complaint of the division; or
(ii)
a request for information from the division;
(h)
make false representations to the division, including in a licensure statement;
(i)
engage in the business of residential mortgage loans with respect to the transaction if the person also acts in any of the following capacities with respect to the same residential mortgage loan transaction:
(i)
appraiser;
(ii)
escrow agent;
(iii)
real estate agent;
(iv)
general contractor; or
(v)
title insurance producer;
(j)
engage in unprofessional conduct as defined by rule;
(k)
engage in an act or omission in transacting the business of residential mortgage loans that constitutes dishonesty, fraud, or misrepresentation;
(l)
engage in false or misleading advertising;
(m)
(i)
fail to account for money received in connection with a residential mortgage loan;
(ii)
use money for a different purpose from the purpose for which the money is received; or
(iii)
except as provided in Subsection (4), retain money paid for services if the services are not performed;
(n)
fail to provide a prospective borrower a copy of each appraisal and any other written valuation developed in connection with an application for credit that is to be secured by a first lien on a dwelling in accordance with Subsection (5);
(o)
engage in an act that is performed to:
(i)
evade this chapter; or
(ii)
assist another person to evade this chapter;
(p)
recommend or encourage default, delinquency, or continuation of an existing default or delinquency, by a mortgage applicant on an existing indebtedness before the closing of a residential mortgage loan that will refinance all or part of the indebtedness;
(q)
in the case of the lending manager of an entity or a branch office of an entity, fail to exercise reasonable supervision over the activities of:
(i)
unlicensed staff; or
(ii)
a mortgage loan originator who is affiliated with the lending manager;
(r)
pay or offer to pay an individual who does not hold a license under this chapter for work that requires the individual to hold a license under this chapter;
(s)
in the case of a dual licensed title licensee as defined in Section 31A-2-402:
(i)
provide a title insurance product or service without the approval required by Section 31A-2-405; or
(ii)
knowingly provide false or misleading information in the statement required by Subsection 31A-2-405(2);
(t)
represent to the public that the person can or will perform any act of a mortgage loan originator if that person is not licensed under this chapter because the person is exempt under Subsection 61-2c-105(4), including through:
(i)
advertising;
(ii)
a business card;
(iii)
stationery;
(iv)
a brochure;
(v)
a sign;
(vi)
a rate list; or
(vii)
other promotional item;
(u)
(i)
engage in an act of loan modification assistance without being licensed under this chapter;
(ii)
engage in an act of foreclosure rescue that requires licensure as a real estate agent or real estate broker under Chapter 2, Division of Real Estate, without being licensed under that chapter;
(iii)
engage in an act of loan modification assistance without entering into a written agreement specifying which one or more acts of loan modification assistance will be completed;
(iv)
request or require a person to pay a fee before obtaining:
(A)
a written offer for a loan modification from the person’s lender or servicer; and
(B)
the person’s written acceptance of the offer from the lender or servicer;
(v)
induce a person seeking a loan modification to hire the licensee to engage in an act of loan modification assistance by:
(A)
suggesting to the person that the licensee has a special relationship with the person’s lender or loan servicer; or
(B)
falsely representing or advertising that the licensee is acting on behalf of:
(I)
a government agency;
(II)
the person’s lender or loan servicer; or
(III)
a nonprofit or charitable institution;
(vi)
recommend or participate in a loan modification that requires a person to:
(A)
transfer title to real property to the licensee or to a third-party with whom the licensee has a business relationship or financial interest;
(B)
make a mortgage payment to a person other than the person’s loan servicer; or
(C)
refrain from contacting the person’s:
(I)
lender;
(II)
loan servicer;
(III)
attorney;
(IV)
credit counselor; or
(V)
housing counselor; or
(vii)
for an agreement for loan modification assistance entered into on or after May 11, 2010, engage in an act of loan modification assistance without offering in writing to the person entering into the agreement for loan modification assistance a right to cancel the agreement within three business days after the day on which the person enters the agreement;
(v)
sign or initial a document on behalf of another person, except for in a circumstance allowed by the division by rule, with the concurrence of the commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
engage in any act or practice that violates appraisal independence as defined in 15 U.S.C. § 1639e or in the policies and procedures of:
(i)
the Federal Home Loan Mortgage Corporation; or
(ii)
the Federal National Mortgage Association.
(2)
Regardless of whether the crime is related to the business of residential mortgage loans, it is a violation of this chapter for a licensee or a person who is a certified education provider to:
(a)
be convicted of:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(b)
plead guilty or nolo contendere to:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor; or
(c)
enter into a plea in abeyance agreement in relation to:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor.
(3)
A lending manager does not violate Subsection (1)(q) if:
(a)
in contravention of the lending manager’s written policies and instructions, an affiliated licensee of the lending manager violates:
(i)
this chapter; or
(ii)
rules made by the division under this chapter;
(b)
the lending manager established and followed reasonable procedures to ensure that affiliated licensees receive adequate supervision;
(c)
upon learning of a violation by an affiliated licensee, the lending manager attempted to prevent or mitigate the damage;
(d)
the lending manager did not participate in or ratify the violation by an affiliated licensee; and
(e)
the lending manager did not attempt to avoid learning of the violation.
(4)
Notwithstanding Subsection (1)(m)(iii), a licensee may, upon compliance with Section 70D-2-305, charge a reasonable cancellation fee for work done originating a mortgage if the mortgage is not closed.
(5)
(a)
Except as provided in Subsection (5)(b), a person transacting the business of residential mortgage loans in this state shall provide a prospective borrower a copy of each appraisal and any other written valuation developed in connection with an application for credit that is to be secured by a first lien on a dwelling on or before the earlier of:
(i)
as soon as reasonably possible after the appraisal or other valuation is complete; or
(ii)
three business days before the day of the settlement.
(b)
Subject to Subsection (5)(c), unless otherwise prohibited by law, a prospective borrower may waive the timing requirement described in Subsection (5)(a) and agree to receive each appraisal and any other written valuation:
(i)
less than three business days before the day of the settlement; or
(ii)
at the settlement.
(c)
(i)
Except as provided in Subsection (5)(c)(ii), a prospective borrower shall submit a waiver described in Subsection (5)(b) at least three business days before the day of the settlement.
(ii)
Subsection (5)(b) does not apply if the waiver only pertains to a copy of an appraisal or other written valuation that contains only clerical changes from a previous version of the appraisal or other written valuation and the prospective borrower received a copy of the original appraisal or other written valuation at least three business days before the day of the settlement.
(d)
If a prospective borrower submits a waiver described in Subsection (5)(b) and the transaction never completes, the person transacting the business of residential mortgage loans shall provide a copy of each appraisal or any other written valuation to the applicant no later than 30 days after the day on which the person knows the transaction will not complete.
