Utah Modifies Provisions Under Residential Mortgage Practices and Licensing Act
Utah has issued House Bill 243 relating to licensing, record requirements, and investigations. The updates are effective May 8, 2018.
House Bill 243 includes a requirement that any entity that is licensed under the Residential Mortgage Practices and Licensing Act conduct the entity’s business of residential mortgage loans from a location within the United States. For context, Utah defines the business of residential mortgage loans as conducting any of the following activities: (1) taking a residential mortgage loan application or offering or negotiating terms of a residential mortgage loan; (2) making or originating a residential mortgage loan; (3) directly or indirectly soliciting a residential mortgage loan for another; or (4) rendering services related to the origination of a residential mortgage loan including: (a) preparing a loan package; (b) communicating with the borrower or lender; (c) advising on a loan term; (d) acting as a loan processor without being employed by a licensed entity; or (e) acting as a loan underwriter without being employed by a licensed entity or depository institution.
The Bill also includes an update to the investigation requirements of the Residential Mortgage Practices and Licensing Act, which states that a failure to respond to a request by the Utah Division of Real Estate in an investigation within 10 days after the day on which the request is served is a violation of the Act.
Additionally, the Bill amends the Appraisal Management Company Registration and Regulation Act. In this regard, the Bill makes changes regarding registration requirements and qualifications, fees charged by the Division of Real Estate for such registration and services and the Division’s authority under the Act, adherence to professional standards, and the transmission of reports to the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
More information regarding House Bill 243 can be found here.
