reglab/statecodes huggingface dataset:
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 2 - Licensure › Section 206 - Lending manager licenses.

Effective 5/9/2017
61-2c-206.
Lending manager licenses.
(1) To qualify for licensure as a lending manager under this chapter, an individual shall:
(a) meet the standards in Section 61-2c-203;
(b) successfully complete the following education:
(i) mortgage loan originator prelicensing education as required by federal licensing regulations; and
(ii) 40 hours of Utah-specific prelicensing education for a lending manager that is approved by the division under Section 61-2c-204.1;
(c) successfully complete the following examinations:
(i) the mortgage loan originator licensing examination, including the national and uniform state test content, as approved by the nationwide database; and
(ii) the lending manager licensing examination approved by the commission under Section 61-2c-204.1;
(d) submit proof, on a form approved by the division, of three years of full-time active experience as a mortgage loan originator licensed in any state in the five years preceding the day on which the application is submitted, or equivalent experience as approved by the commission pursuant to rule that the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(e) submit an application in a manner established by the division by rule;
(f) establish sponsorship with an entity licensed under this chapter;
(g) submit to the criminal background check required by Subsection 61-2c-202(1)(b); and
(h) pay a fee determined by the division under Section 63J-1-504.
(2) A lending manager may not:
(a) engage in the business of residential mortgage loans on behalf of more than one entity at the same time;
(b) be sponsored by more than one entity at the same time; or
(c) act simultaneously as the principal lending manager and branch lending manager for the individual's sponsoring entity, unless:
(i) the sponsoring entity does not originate Utah residential mortgage loans from the sponsoring entity's location; and
(ii) the sponsoring entity originates Utah residential mortgage loans from no more than one branch location.
(3) An individual who is a lending manager may:
(a) transact the business of residential mortgage loans as a mortgage loan originator; and
(b) be designated within the nationwide database to act for the individual's sponsoring entity as the principal lending manager, an associate lending manager, or a branch lending manager.
Amended by Chapter 182, 2017 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 2 - Licensure › Section 210 - Surrender of license.

Effective 5/13/2014
61-2c-210.
Surrender of license.
(1) The division may, by written agreement, accept the voluntary surrender of a license issued under this chapter.
(2) Tender and acceptance of a voluntary surrender of a license under Subsection (1):
(a) does not prevent the division from pursuing additional action, including disciplinary action, that relates to the surrendered license and is authorized by this chapter or by rules made under this chapter; and
(b) terminates all rights and privileges associated with the license.
(3) A person may restore the rights and privileges described in Subsection (2)(b) only if the person reapplies for, and is granted, licensure in accordance with the requirements described in this chapter.
(4) Any documentation relating to the tender and acceptance of a voluntary surrender is a public record.
Enacted by Chapter 350, 2014 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 3 - Operational Restrictions › Section 302 - Record requirements.

Effective 5/8/2018
61-2c-302.
Record requirements.
(1) For the time period specified in Subsection (2), a licensee shall make or possess any record required for that licensee by a rule made by the division.
(2) A licensee, or a person required to be licensed under this chapter, shall maintain and safeguard in the licensee's or the person's possession a record described in Subsection (1) for four years from the last to occur of the following:
(a) the final entry on a residential mortgage loan is made by that licensee;
(b) if the residential mortgage loan is serviced by the licensee:
(i) the residential mortgage loan is paid in full; or
(ii) the licensee ceases to service the residential mortgage loan; or
(c) if the residential mortgage loan is not serviced by the licensee, the residential mortgage loan is closed.
(3) A licensee shall, upon the division's request:
(a) make available to the division for inspection and copying during normal business hours all records required to be maintained under this chapter; and
(b) produce all records described in Subsection (3)(a) that are related to an investigation being conducted by the division at the division office for inspection and copying by the division.
(4) A licensee who is an entity shall maintain and produce for inspection by the division a current list of all individuals whose licenses are sponsored by the entity.
(5)
(a) A licensed entity shall:
(i) create, for each quarter of the fiscal year, a report of condition identifying all lending activities, including all loans closed by the entity's sponsored mortgage loan originators during the quarter;
(ii) provide each quarterly report of condition to the nationwide database no later than 75 days after the last day of the reporting quarter; and
(iii) maintain each report of condition submitted to the nationwide database as required by 12 U.S.C. Sec. 5104(e) for at least four years from the day on which the licensee submits the report of condition to the nationwide database.
(b) Upon request by the division, a mortgage loan originator shall produce a report of condition for inspection by the division.
Amended by Chapter 213, 2018 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 4 - Enforcement › Section 402.1 - Adjudicative proceedings -- Review.

Effective 5/13/2014
61-2c-402.1.
Adjudicative proceedings -- Review.
(1)
(a) Before an action described in Section 61-2c-402 may be taken, the division shall:
(i) give notice to the person against whom the action is brought; and
(ii) commence an adjudicative proceeding.
(b) If after the adjudicative proceeding is commenced under Subsection (1)(a) the presiding officer determines that a person required to be licensed under this chapter has violated this chapter, the division may take an action described in Section 61-2c-402 by written order.
(2) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, a person against whom action is taken under this section may seek review by the executive director of the action.
(3) If a person prevails in a judicial appeal and the court finds that the state action was undertaken without substantial justification, the court may award reasonable litigation expenses to that individual or entity as provided under Title 78B, Chapter 8, Part 5, Small Business Equal Access to Justice Act.
(4)
(a) An order issued under this section takes effect 30 days after the service of the order unless otherwise provided in the order.
(b) If an appeal of an order issued under this section is taken by a person, the division may stay enforcement of the order in accordance with Section 63G-4-405.
(5) If ordered by the court of competent jurisdiction, the division shall promptly take an action described in Section 61-2c-402 against a license granted under this chapter.
(6)
(a) Except as provided in Subsection (6)(b), the division shall commence a disciplinary action under this chapter no later than the earlier of the following:
(i) four years after the day on which the violation is reported to the division; or
(ii) 10 years after the day on which the violation occurred.
(b) The division may commence a disciplinary action under this chapter after the time period described in Subsection (6)(a) expires if:
(i)
(A) the disciplinary action is in response to a civil or criminal judgment or settlement; and
(B) the division initiates the disciplinary action no later than one year after the day on which the judgment is issued or the settlement is final; or
(ii) the division and the person subject to a disciplinary action enter into a written stipulation to extend the time period described in Subsection (6)(a).
Amended by Chapter 350, 2014 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 4 - Enforcement › Section 403 - Cease and desist orders.

Superseded 7/1/2024
61-2c-403.
Cease and desist orders.
(1)
(a) The director may issue and serve by certified mail, or by personal service, on a person an order to cease and desist from an act if:
(i) the director has reason to believe that the person has been engaged, is engaging in, or is about to engage in the act constituting a violation of this chapter; and
(ii) it appears to the director that it would be in the public interest to stop the act.
(b) Within 10 days after service of the order, the party named in the order may request a hearing to be held in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(c) Pending a hearing requested under Subsection (1)(b), a cease and desist order shall remain in effect.
(2)
(a) After the hearing described in Subsection (1), if the director finds that an act of the person violates this chapter, the director:
(i) shall issue an order making the cease and desist order permanent; and
(ii) may impose another disciplinary action under Section 61-2c-402.
(b)
(i) The director may file suit in the name of the division to enjoin and restrain a person on whom an order is served under this section from violating this chapter if:
(A)
(I) the person does not request a hearing under Subsection (1); or
(II) a permanent cease and desist order is issued against the person following a hearing or stipulation; and
(B)
(I) the person fails to cease the act; or
(II) after discontinuing the act, the person again commences the act.
(ii) The suit described in Subsection (2)(b)(i) shall be filed in the district court in the county:
(A) in which the act occurs;
(B) where the individual resides; or
(C) where the individual or entity carries on business.
(3) The cease and desist order issued under this section may not interfere with or prevent the prosecution of a remedy or action enforcement under this chapter.
(4) An individual who violates a cease and desist order issued under this section is guilty of a class A misdemeanor.
Amended by Chapter 372, 2009 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 4 - Enforcement › Section 403 - Cease and desist orders.

Effective 7/1/2024
61-2c-403.
Cease and desist orders.
(1)
(a) The director may issue and serve by certified mail, or by personal service, on a person an order to cease and desist from an act if:
(i) the director has reason to believe that the person has been engaged, is engaging in, or is about to engage in the act constituting a violation of this chapter; and
(ii) it appears to the director that it would be in the public interest to stop the act.
(b) Within 10 days after service of the order, the party named in the order may request a hearing to be held in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(c) Pending a hearing requested under Subsection (1)(b), a cease and desist order shall remain in effect.
(2)
(a) After the hearing described in Subsection (1), if the director finds that an act of the person violates this chapter, the director:
(i) shall issue an order making the cease and desist order permanent; and
(ii) may impose another disciplinary action under Section 61-2c-402.
(b) The director may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, in the name of the division to enjoin and restrain a person on whom an order is served under this section from violating this chapter if:
(i)
(A) the person does not request a hearing under Subsection (1); or
(B) a permanent cease and desist order is issued against the person following a hearing or stipulation; and
(ii)
(A) the person fails to cease the act; or
(B) after discontinuing the act, the person again commences the act.
(3) The cease and desist order issued under this section may not interfere with or prevent the prosecution of a remedy or action enforcement under this chapter.
(4) An individual who violates a cease and desist order issued under this section is guilty of a class A misdemeanor.
Amended by Chapter 401, 2023 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 4 - Enforcement › Section 404 - Civil actions.

61-2c-404.
Civil actions.
(1)
(a) A person who violates this chapter is liable for an additional penalty, as determined by the court, of at least the amount the person received in consequence of a violation of this chapter as:
(i) commission;
(ii) compensation; or
(iii) profit.
(b) A person aggrieved by a violation of this chapter may:
(i) bring an action for a penalty described in Subsection (1)(a); and
(ii) use a penalty obtained under Subsection (1)(a) for the person's own use and benefit.
(2) A person who is not licensed under this chapter at the time of an act or service that requires a license under this chapter may not bring an action in court for the recovery of a commission, fee, or compensation for that act or service.
(3)
(a) A mortgage loan originator may not bring an action in the mortgage loan originator's own name for the recovery of a fee, commission, or compensation for transacting the business of residential mortgage loans unless the action is brought against the entity by which the mortgage loan originator is sponsored at the time of the act or service that is the subject of the action.
(b) An action by an entity for the recovery of a fee, commission, or other compensation shall be brought by:
(i) an entity; or
(ii) the principal lending manager of an entity on behalf of the entity.
(4) A principal lending manager who transacts the business of residential mortgage loans on the principal lending manager's own behalf may sue in the principal lending manager's own name for the recovery of a fee, commission, or compensation for transacting the business of residential mortgage loans.
Amended by Chapter 166, 2012 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 4 - Enforcement › Section 405 - Penalty for violating this chapter -- Automatic revocation.

61-2c-405.
Penalty for violating this chapter -- Automatic revocation.
(1) In addition to being subject to a disciplinary action by the commission, a person required to be licensed or certified under this chapter who violates this chapter:
(a) is guilty of a class A misdemeanor upon conviction of a first violation of this chapter; and
(b) is guilty of a third degree felony upon conviction of a second or subsequent violation of this chapter.
(2) A license or certification issued by the division to a person convicted of a violation of Section 76-6-1203 is automatically revoked.
Amended by Chapter 352, 2009 General Session
Amended by Chapter 372, 2009 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 501 - Fund created.

61-2c-501.
Fund created.
(1) There is created an expendable special revenue fund known as the "Residential Mortgage Loan Education, Research, and Recovery Fund."
(2) The interest earned on the fund shall be deposited into the fund.
(3) At the beginning of each fiscal year, the division shall make available
$100,000 in the fund to satisfy final judgments rendered against a person licensed under this chapter.
Amended by Chapter 400, 2013 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 501.5 - Definitions.

61-2c-501.5.
Definitions.
As used in this part:
(1) "Civil judgment" means a judgment in a civil action that:
(a) is awarded in an action brought against a person licensed under this chapter on the basis of fraud, misrepresentation, or deceit in a residential mortgage loan transaction; and
(b) awards actual damages.
(2) "Criminal restitution judgment" means a judgment that, in accordance with the Utah Code of Criminal Procedure, orders criminal restitution to a person and against a person licensed under this chapter for a criminal offense involving fraud, misrepresentation, or deceit in a residential mortgage loan transaction.
(3) "Final judgment" means one of the following judgments upon termination of the proceedings related to the judgment, including appeals:
(a) a civil judgment; or
(b) a criminal restitution judgment.
(4) "Fund" means the Residential Mortgage Loan Education, Research, and Recovery Fund created in Section 61-2c-501.
Amended by Chapter 289, 2011 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 502 - Additional license fee.

Effective 5/12/2015
61-2c-502.
Additional license fee.
(1) An individual who applies for or renews a license shall pay, in addition to any other fee required under this chapter, a reasonable annual fee:
(a) determined by the division with the concurrence of the commission; and
(b) not to exceed $18.
(2)
(a) An entity that applies for or renews an entity license shall pay, in addition to any other fee required under this chapter, a reasonable annual fee:
(i) determined by the division with the concurrence of the commission; and
(ii) not to exceed $25.
(b) This Subsection (2) applies:
(i) notwithstanding that an entity is operating under an assumed name registered with the division as required by Subsection 61-2c-201(5); and
(ii) to each branch office of an entity that is licensed under this chapter.
(3) Notwithstanding Section 13-1-2, the following shall be paid into the fund to be used as provided in this part:
(a) a fee provided in this section;
(b) a fee for certifying:
(i) a school as a certified education provider;
(ii) a prelicensing or continuing education course; or
(iii) a prelicensing or continuing education provider as an instructor; and
(c) a civil penalty imposed under this chapter.
(4) If the balance in the fund that is available to satisfy a judgment against a licensee decreases to less than $100,000, the division may make an additional assessment to a licensee to maintain the balance available at $100,000 to satisfy judgments.
Amended by Chapter 258, 2015 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 504 - Authority to act on receipt of petition.

61-2c-504.
Authority to act on receipt of petition.
(1) Upon receipt of a petition meeting the requirements of Section 61-2c-503, the division may answer, initiate review proceedings, or appear in a proceeding:
(a) in the name of the defendant to the action; or
(b) on behalf of the fund.
(2) The division may settle a claim subject to:
(a) the application of a petitioner; and
(b) court approval.
Enacted by Chapter 297, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 505 - Court determination and order.

61-2c-505.
Court determination and order.
If the court determines that a claim should be levied against the portion of the fund allocated to carry out this chapter, the court shall enter an order requiring the division to pay from the fund the portion of a final judgment that is payable from the fund under Section 61-2c-503.
Amended by Chapter 379, 2010 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 506 - Insufficient funds to satisfy judgment -- Procedure and interest.

61-2c-506.
Insufficient funds to satisfy judgment -- Procedure and interest.
If the money deposited in the fund and allotted for satisfying judgments against licensees is insufficient to satisfy an authorized claim for payment, the division shall, when sufficient money has been deposited in the fund, satisfy the unpaid claims in the order they originally were filed, together with accumulated interest at the rate allowable on judgments under Section 15-1-4.
Enacted by Chapter 297, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 507 - Division subrogated -- Authority to suspend license.

Effective 5/10/2016
61-2c-507.
Division subrogated -- Authority to suspend license.
(1) If the division pays a person from the fund in accordance with this part:
(a) the division is subrogated to the rights of that person for the amounts paid out of the fund; and
(b) any amount and interest recovered by the division shall be deposited in the fund.
(2)
(a) Subject to Subsection (2)(b), the license of a licensee for whom payment from the fund is made under this part is automatically suspended as of the earlier of the day on which:
(i) the division is ordered by a court to pay from the fund; or
(ii) the division pays from the fund.
(b)
(i) A person whose license is suspended under Subsection (2)(a) may appeal the suspension in a de novo hearing conducted by the commission:
(A) after the suspension; and
(B) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(ii) The commission may delegate:
(A) to the division or an administrative law judge the authority to conduct a hearing described in Subsection (2)(b)(i); or
(B) to the division the authority to make a decision on whether relief from a suspension should be granted.
(3) Unless the suspension is not upheld after a hearing described in Subsection (2)(b), a licensee whose license is suspended pursuant to Subsection (2) may not apply to renew a license nor apply for a new license until the licensee:
(a) pays into the fund:
(i) the amount paid out of the fund on behalf of the licensee; and
(ii) interest at a rate determined by the division with the concurrence of the commission; and
(b) participates in a hearing before the commission and is approved by the commission, with the concurrence of the director, for licensure or activation of the suspended license.
Amended by Chapter 384, 2016 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 508 - Failure to comply.

61-2c-508.
Failure to comply.
The failure of a person to comply with this part is a waiver of any right provided under this part.
Enacted by Chapter 297, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 509 - Disciplinary actions.

61-2c-509.
Disciplinary actions.
(1) This part does not limit the authority of the director or commission to take disciplinary action against a licensee for a violation of:
(a) this chapter; or
(b) rules made by the division under this chapter.
(2) The repayment in full of all obligations to the fund by a licensee does not nullify or modify the effect of a disciplinary proceeding brought under:
(a) this chapter; or
(b) rules made by the division under this chapter.
Amended by Chapter 372, 2009 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2c - Utah Residential Mortgage Practices and Licensing Act › Part 5 - Residential Mortgage Loan Education, Research, and Recovery Fund › Section 510 - Money accumulated -- Purpose.

61-2c-510.
Money accumulated -- Purpose.
(1) The division may use money accumulated in the fund in excess of the amount necessary to satisfy claims to:
(a) investigate violations of this chapter related to fraud; and
(b) advance education and research in the field of residential mortgage loans.
(2) The division may use the excess money described in Subsection (1) only in a manner consistent with Subsection (1), including for:
(a) courses sponsored by the division;
(b) courses offered by the division in conjunction with a university or college in Utah;
(c) contracting for a research project for the state in the field of residential mortgage loans;
(d) funding the salaries and training expenses of division staff members who are employed in positions related to the education of mortgage licensees;
(e) funding the training expenses of division staff members who are employed in positions conducting investigations of complaints under this chapter; and
(f) publishing and distributing educational materials to:
(i) licensees; and
(ii) applicants for licensure.
Amended by Chapter 325, 2007 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 103 - Prepayment penalty.

61-2d-103.
Prepayment penalty.
(1) The terms of a high-cost mortgage loan may contain terms under which a borrower must pay a penalty for prepayment.
(a) However, a penalty for prepayment cannot be assessed more than 36 months after the loan was originally made.
(b) The amount of the penalty may not exceed the total amount of interest paid at 80% of the immediately preceding six scheduled payments.
(2) For purposes of this section, any method of computing a refund or unearned scheduled interest is a prepayment penalty if it is less favorable to the borrower than the actuarial method.
(3) Notwithstanding Subsection (1), a high-cost mortgage may not require a prepayment penalty if:
(a) the high-cost mortgage is paid with the proceeds of a new loan by the same lender or an affiliate of that lender; or
(b) the penalty is prohibited under other applicable law.
(4) If a prepayment does not pay the full amount owed on the high-cost mortgage when the prepayment is made, the penalty shall be reduced by a percentage equal to the percentage of the balance owed before the prepayment that remains unpaid.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 104 - Negative amortization prohibited.

61-2d-104.
Negative amortization prohibited.
A high cost mortgage shall provide for regular, periodic payments sufficient to pay:
(1) all accrued interest and a portion of principal on the scheduled due date for each payment; and
(2) the full amount owed during the term of the loan, if no late fees or other contingent charges are incurred.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 105 - Financing points and fees -- Restrictions.

61-2d-105.
Financing points and fees -- Restrictions.
(1) A lender may not, in connection with the formation or consummation of a high-cost mortgage, finance, directly or indirectly, any portion of the points, fees, or other charges payable to the lender or any third party in an amount in excess of 8% of the total loan amount, unless the following additional disclosures are made to the borrower in conspicuous type size:
(a) "You are not required to complete this agreement merely because you have received these disclosures or have signed the loan application."
(b) "If you obtain this loan, the lender will have a mortgage on your home. You could lose your home or property, and any money you have put into it, if you do not meet your obligations under this loan."
(c) "The timing and amount of payments on debts you already are carrying contribute to the credit rating that is used to determine whether you may get a new loan and how much you will pay for that new loan. You should not accept any advice to ignore or delay making any payment on loans you already have, even if those loans will be paid off with the new loan."
(d) "You may get into serious financial difficulties if you use this loan to pay off old debts and then run up other new debts."
(2) The disclosures required by this section shall be given to the borrower no less than three business days prior to consummation of the transaction.
(3) After providing the disclosure required by this section, a lender may not change the terms of the extension of credit if such changes make the disclosures inaccurate, unless new disclosures are provided that meet the requirements of this section.
(4) A lender may provide new disclosures pursuant to Subsection (3) by telephone, if:
(a) the change is initiated by the borrower; and
(b) at the consummation of the transaction under which the credit is extended:
(i) the lender provides to the borrower the new disclosures in writing; and
(ii) the lender and borrower certify in writing that the new disclosures were provided by telephone, at least three days prior to the date of consummation of the transaction.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 106 - Arbitration clauses.

61-2d-106.
Arbitration clauses.
To be valid, an arbitration clause in a high-cost mortgage contract must comply with the standards set forth in Title 78B, Chapter 11, Utah Uniform Arbitration Act or the Federal Arbitration Act, or any successor acts.
Amended by Chapter 3, 2008 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 107 - Prohibition on single premium credit life insurance.

61-2d-107.
Prohibition on single premium credit life insurance.
A borrower credit transaction involving a high-cost mortgage may not include:
(1) the offer or sale of any insurance policy, on a single premium or single fee basis, that insures, guarantees, or indemnifies the repayment of the outstanding balance of the loan against:
(a) death;
(b) illness;
(c) accident;
(d) disability; or
(e) unemployment of the borrower; or
(2) debt cancellation or a debt suspension agreement.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 109 - Copies.

61-2d-109.
Copies.
The lender shall provide, at no cost to the borrower, a complete set of all documents pertaining to the transaction, including copies of all documents to be executed or recorded and any loan documents changed at the closing:
(1) at the time of the closing if done in person; or
(2) no later than three business days from the closing if done by mail or any other format.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 110 - Encouraging default prohibited.

61-2d-110.
Encouraging default prohibited.
(1) A lender may not recommend or encourage default or nonpayment leading to foreclosure on an existing loan or other debt prior to and in connection with the closing or planned closing of a high-cost mortgage that refinances all or any portion of such existing loan or debt.
(2) This section applies to all loans.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 112 - Notice of information available to borrowers.

61-2d-112.
Notice of information available to borrowers.
(1) In addition to any other notice or disclosure a lender or title company may provide to a borrower seeking, obtaining, or inquiring about a high-cost mortgage, the lender shall provide the borrower any brochure or other document information prepared by a federal or state authority in a form intended to inform consumers about home loans or consumer credit on financing or educational resources on financing.
(2) The requirement set forth in Subsection (1) may include:
(a) the posting, in a public area of the office, notice indicating that educational resources are available;
(b) a list of educational opportunities or programs offered in the surrounding area including the program name and phone number;
(c) a printed brochure or booklet on responsible lending and borrowing available to the borrower at no charge; or
(d) information from the Department of Financial Institutions on its responsible consumer financial educational program.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2d - Utah High Cost Home Loan Act › Section 113 - Effect of failure to comply.

61-2d-113.
Effect of failure to comply.
Failure to provide the notices or information described in Subsection 61-2d-105(1) and Sections 61-2d-111 and 61-2d-112 does not affect the enforceability of the loan or any of its terms.
Enacted by Chapter 252, 2004 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 1 - General Provisions › Section 103 - Rulemaking.

61-2e-103.
Rulemaking.
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the board may make rules, with the concurrence of the division, that are:
(1) consistent with this chapter; and
(2) necessary to implement this chapter.
Amended by Chapter 289, 2011 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 1 - General Provisions › Section 104 - Exemption.

Effective 5/8/2018
61-2e-104.
Exemption.
This chapter does not apply to:
(1) an entity that:
(a) exclusively employs an individual on an employer-employee basis for the performance of a real estate appraisal activity in the normal course of the entity's business;
(b) is responsible for ensuring that the real estate appraisal activity being performed by an employee is performed in accordance with applicable appraisal standards; and
(c) is a federally regulated appraisal management company;
(2) an individual who:
(a) is an appraiser; and
(b) in the normal course of business enters into an agreement, whether written or otherwise, with another appraiser for the performance of a real estate appraisal activity that the individual cannot complete for any reason, including:
(i) competency;
(ii) work load;
(iii) schedule; or
(iv) geographic location; or
(3) an individual who:
(a) in the normal course of business enters into an agreement, whether written or otherwise, with an appraiser for the performance of a real estate appraisal activity; and
(b) under the agreement, cosigns the report of the appraiser performing the real estate appraisal activity upon the completion of the real estate appraisal activity.
Amended by Chapter 213, 2018 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 2 - Registration › Section 205 - Division service fees -- Federal registry fees.

Effective 5/3/2023
61-2e-205.
Division service fees -- National registry form and fees -- Suspension and revocation of registration -- Removal from national registry.
(1) The division, with the concurrence of the board, shall establish and collect fees, in accordance with Section 63J-1-504, for services the division renders to carry out this chapter.
(2) An appraisal management company registered under this chapter shall, on or before May 31 of each year, file with the division a national registry reporting form in the manner prescribed by the division.
(3) The division shall:
(a) collect the annual national registry fee established by the Appraisal Subcommittee from:
(i) each appraisal management company registered under this chapter; and
(ii) each federally regulated appraisal management company; and
(b) transfer the fees collected under Subsection (3)(a) to the Appraisal Subcommittee on a monthly basis.
(4) If an appraisal management company registered under this chapter fails to pay the annual national registry fee described in Subsection (3) or file the national registry reporting form in accordance with Subsection (2), the division may suspend or revoke the appraisal management company's registration.
(5) If an appraisal management company pays a fee or cost to the division with a negotiable instrument or any other payment method that is not honored, the division:
(a) may void the transaction for which the payment is submitted;
(b) may reverse the transaction, if the division does not receive full payment of the applicable fee or cost; and
(c) shall suspend the appraisal management company's registration:
(i) beginning the day on which the payment is due; and
(ii) ending the day on which payment is made in full.
Amended by Chapter 141, 2023 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 3 - Operational Requirements › Section 301 - Use of licensed or certified appraisers.

Effective 5/10/2016
61-2e-301.
Use of licensed or certified appraisers.
(1) An appraisal management company required to be registered under this chapter may not enter into an agreement with an appraiser for the performance of a real estate appraisal activity unless the appraiser is licensed or certified in good standing pursuant to Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
(2)
(a) An appraisal management company required to be registered under this chapter shall have a system to verify that an individual added to the appraiser panel of the appraisal management company holds a license or certificate in good standing in this state pursuant to Chapter 2g, Real Estate Appraiser Licensing and Certification Act.
(b) As part of the registration process under Part 2, Registration, an appraisal management company shall biennially provide an explanation of the system described in Subsection (2)(a) in the form prescribed by the division.
(3) The board, with the concurrence of the division, may establish, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, requirements regarding when use of a licensed appraiser or certified appraiser is appropriate, including how an assignment is offered to an appraiser.
Amended by Chapter 384, 2016 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 3 - Operational Requirements › Section 302 - Adherence to standards.

Effective 5/8/2018
61-2e-302.
Adherence to standards.
(1) An appraisal management company required to be registered under this chapter shall have a system in place to:
(a) ensure that the appraisal management company only selects for a real estate appraisal activity an appraiser who:
(i) is independent of the transaction; and
(ii) has the requisite education, expertise, and experience necessary to competently complete the real estate appraisal activity for the particular market and property type;
(b) review the work of an appraiser who performs a real estate appraisal activity for the appraisal management company on a periodic basis to ensure that a real estate appraisal activity is conducted in accordance with applicable appraisal standards; and
(c) ensure that the appraisal management company conducts appraisal management services in accordance with the requirements of the Truth in Lending Act, 15 U.S.C. Sec. 1639e(a)-(i), and the regulations thereunder.
(2) As part of the registration process under Part 2, Registration, an appraisal management company shall biennially provide an explanation of each system described in Subsection (1) in the form prescribed by the division.
Amended by Chapter 213, 2018 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 3 - Operational Requirements › Section 303 - Recordkeeping.

Effective 5/12/2015
61-2e-303.
Recordkeeping.
(1) An appraisal management company required to be registered under this chapter shall:
(a) maintain a detailed record of the following for the same time period an appraiser is required to maintain an appraisal record for the same real estate appraisal activity:
(i) a real estate appraisal activity request that the appraisal management company receives; and
(ii) the appraiser that performs the real estate appraisal activity described in Subsection (1) for the appraisal management company; and
(b) retain for at least five years any file reviewed by the appraisal management company in accordance with Section 61-2e-302 and any documents that relate to the review, including:
(i) the appraisal;
(ii) any documentation of the review; and
(iii) any correspondence that relates to the review.
(2) As part of the registration process under Part 2, Registration, an appraisal management company shall biennially provide an explanation of its recordkeeping described in Subsection (1) in the form prescribed by the division.
Amended by Chapter 262, 2015 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 3 - Operational Requirements › Section 304 - Required disclosure -- Customary and reasonable compensation.

Effective 5/10/2016
61-2e-304.
Required disclosure -- Customary and reasonable compensation.
(1) Before an appraisal management company may receive money from a client for a real estate appraisal activity requested by the client, the appraisal management company shall disclose to the client the total compensation that the appraisal management company pays to the appraiser who performs the real estate appraisal activity.
(2) An appraisal management company shall compensate an appraiser for an appraisal at a rate that is:
(a) customary and reasonable for an appraisal in the geographic market area of the property being appraised; and
(b) consistent with a presumption of compliance under the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203, and implementing federal regulations.
(3) The board may, with the concurrence of the division, define by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
(a) the disclosures required to be made by the appraisal management company to the appraiser;
(b) the disclosures required to be made by the appraiser in the appraisal report;
(c) the form and content of the disclosure required by Subsection (1); and
(d) the customary and reasonable compensation required to be paid to appraisers by appraisal management companies.
Amended by Chapter 25, 2016 General Session
Amended by Chapter 384, 2016 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 3 - Operational Requirements › Section 305 - Employee requirements.

Effective 5/10/2016
61-2e-305.
Employee requirements.
(1) Subsection (2) applies to an individual who:
(a)
(i) is an employee of an appraisal management company; or
(ii) works on behalf of an appraisal management company; and
(b)
(i) selects an appraiser for the performance of a real estate appraisal activity for the appraisal management company; or
(ii) reviews a completed appraisal.
(2)
(a) An individual described in Subsection (1) is required to be appropriately trained and qualified in the performance of an appraisal, as determined by rule made by the board, with the concurrence of the division, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) For purposes of an individual described in Subsection (1) who reviews the work of an appraiser, to comply with this Subsection (2), the individual shall demonstrate knowledge of the applicable appraisal standards, as determined by rule made by the board, with the concurrence of the division, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
Amended by Chapter 25, 2016 General Session
2023 Utah Code › Title 61 - Securities Division - Real Estate Division › Chapter 2e - Appraisal Management Company Registration and Regulation Act › Part 3 - Operational Requirements › Section 306 - Removal of appraiser from appraisal panel.

Effective 5/12/2020
61-2e-306.
Removal of appraiser from appraisal panel.
(1) An appraisal management company may not remove the appraiser from the appraisal management company's appraiser panel, or otherwise refuse to assign a request for a real estate appraisal activity to the appraiser without:
(a) notifying the appraiser in writing of:
(i) the reason why the appraiser is being removed from the appraiser panel of the appraisal management company; and
(ii) the nature of the alleged conduct or violation if the appraiser is being removed from the appraiser panel for:
(A) illegal conduct; or
(B) a violation of the applicable appraisal standards; and
(b) providing an opportunity for the appraiser to respond to the notification under Subsection (1)(a).
(2) The board, with the concurrence of the division, may establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, requirements consistent with this section regarding the removal of an appraiser from an appraisal panel.
Amended by Chapter 72, 2020 General Session