<catchline>Financial Institution Mortgage Financing Regulation Act</catchline><chapter number="70D-1"><catchline>General Provisions</catchline><section number="70D-1-101"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Title.</catchline><tab/>This title is known as the "Financial Institution Mortgage Financing Regulation Act." </section><section number="70D-1-102"><histories><history>Amended by Chapter <modchap sess="2011GS">289</modchap>, 2011 General Session</history><modyear>2011</modyear></histories><catchline>Definitions.</catchline><tab/>As used in this title:<subsection number="70D-1-102(1)"> "Commissioner" means the commissioner of the department.</subsection><subsection number="70D-1-102(2)"> "Department" means the Department of Financial Institutions.</subsection><subsection number="70D-1-102(3)"> "Depository institution" is as defined in Section <xref depth="3" refid="C7-1-S103_1800010118000101" refnumber="7-1-103" start="0">7-1-103</xref>.</subsection><subsection number="70D-1-102(4)"> "Dwelling" means a residential structure attached to real property that contains one to four units including any of the following if used as a residence: <subsection number="70D-1-102(4)(a)"> a condominium unit;</subsection><subsection number="70D-1-102(4)(b)"> a cooperative unit;</subsection><subsection number="70D-1-102(4)(c)"> a manufactured home; or</subsection><subsection number="70D-1-102(4)(d)"> a house.</subsection></subsection><subsection number="70D-1-102(5)"> "Mortgage" means a mortgage or deed of trust affecting real property located in this state.</subsection><subsection number="70D-1-102(6)"><subsection number="70D-1-102(6)(a)"> "Mortgage loan" means a loan:<subsection number="70D-1-102(6)(a)(i)"> secured by a mortgage; and</subsection><subsection number="70D-1-102(6)(a)(ii)"> made for personal, family, or household purposes.</subsection></subsection><subsection number="70D-1-102(6)(b)"> "Mortgage loan" does not include a loan:<subsection number="70D-1-102(6)(b)(i)"> made by an individual to a member of the individual's family; or</subsection><subsection number="70D-1-102(6)(b)(ii)"> subject to <xref depth="0" refid="C70C_1800010118000101" refnumber="70C" start="0">Title 70C, Utah Consumer Credit Code</xref>.</subsection></subsection></subsection><subsection number="70D-1-102(7)"> "Mortgagor" means a person who: <subsection number="70D-1-102(7)(a)"> executes a mortgage; or</subsection><subsection number="70D-1-102(7)(b)"> is obligated to pay a mortgage loan.</subsection></subsection><subsection number="70D-1-102(8)"> "Record" means information that is: <subsection number="70D-1-102(8)(a)"> inscribed on a tangible medium; or</subsection><subsection number="70D-1-102(8)(b)"> stored in an electronic or other medium and is retrievable in perceivable form.</subsection></subsection><subsection number="70D-1-102(9)"> "Real estate brokerage activity" means an act that involves offering or providing real estate brokerage services to the public, including: <subsection number="70D-1-102(9)(a)"> acting as a real estate principal broker, associate broker, or sales agent, as defined in Section <xref depth="3" refid="C61-2f-S102_1800010118000101" refnumber="61-2f-102" start="0">61-2f-102</xref>, for a buyer, seller, lessor, or lessee of real property;</subsection><subsection number="70D-1-102(9)(b)"> bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;</subsection><subsection number="70D-1-102(9)(c)"> negotiating, on behalf of a party, a portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing with respect to the transaction;</subsection><subsection number="70D-1-102(9)(d)"> engaging in an act for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under applicable law; and</subsection><subsection number="70D-1-102(9)(e)"> offering to engage in an activity, or act in a capacity, described in Subsections <xref depth="4" refid="C70D-1-S102_1800010118000101" refnumber="70D-1-102(9)(a)" start="0">(9)(a)</xref> through <xref depth="4" refid="C70D-1-S102_1800010118000101" refnumber="70D-1-102(9)(d)" start="0">(d)</xref>.</subsection></subsection><subsection number="70D-1-102(10)"> "State" means: <subsection number="70D-1-102(10)(a)"> a state, territory, or possession of the United States;</subsection><subsection number="70D-1-102(10)(b)"> the District of Columbia; or</subsection><subsection number="70D-1-102(10)(c)"> the Commonwealth of Puerto Rico.</subsection></subsection></section></chapter><chapter number="70D-2"><catchline>Mortgage Lending and Servicing Act</catchline><part number="70D-2-1"><catchline>General Provisions</catchline><section number="70D-2-101"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Short title.</catchline><tab/>This chapter is known as the "Mortgage Lending and Servicing Act." </section><section number="70D-2-102"><histories><history>Amended by Chapter <modchap sess="2016GS">106</modchap>, 2016 General Session</history><modyear>2016</modyear></histories><catchline>Definitions.</catchline><tab/>As used in this chapter:<subsection number="70D-2-102(1)"><subsection number="70D-2-102(1)(a)"> Except as provided in Subsection <xref depth="4" refnumber="70D-2-102(1)(b)" start="0">(1)(b)</xref>, "broker" means a person who in the regular course of business assists a person in obtaining a mortgage loan for a fee or other consideration paid directly or indirectly.</subsection><subsection number="70D-2-102(1)(b)"> "Broker" does not include a person solely because of the person's:<subsection number="70D-2-102(1)(b)(i)"> real estate brokerage activities; or</subsection><subsection number="70D-2-102(1)(b)(ii)"> activities as an attorney licensed to practice law in this state who, in the course of the attorney's practice as an attorney, assists a person in obtaining a mortgage loan.</subsection></subsection></subsection><subsection number="70D-2-102(2)"> "Business as a lender, broker, or servicer" means a person who engages in an act for compensation or in the expectation of compensation that makes the person a lender, broker, or servicer.</subsection><subsection number="70D-2-102(3)"><subsection number="70D-2-102(3)(a)"> Except as provided in Subsection <xref depth="4" refnumber="70D-2-102(3)(c)" start="0">(3)(c)</xref>, "lender" means a person who in the regular course of business originates a loan secured by a mortgage.</subsection><subsection number="70D-2-102(3)(b)"> "Lender" includes a mortgage lender.</subsection><subsection number="70D-2-102(3)(c)"> "Lender" does not include a person who:<subsection number="70D-2-102(3)(c)(i)"> as a seller only receives one or more mortgages as security for a purchase money obligation; or</subsection><subsection number="70D-2-102(3)(c)(ii)"> only receives a mortgage as security for an obligation: <subsection number="70D-2-102(3)(c)(ii)(A)"> payable on an installment or deferred payment basis; and</subsection><subsection number="70D-2-102(3)(c)(ii)(B)"> arising out of materials furnished or services rendered in the improvement of real property.</subsection></subsection></subsection></subsection><subsection number="70D-2-102(4)"> "Manufactured home" means a transportable factory built housing unit that: <subsection number="70D-2-102(4)(a)"> is constructed:<subsection number="70D-2-102(4)(a)(i)"> on or after June 15, 1976, according to the National Manufactured Housing Construction and Safety Standards Act of 1974; and</subsection><subsection number="70D-2-102(4)(a)(ii)"> in one or more sections, which: <subsection number="70D-2-102(4)(a)(ii)(A)"> in the traveling mode, is eight body feet or more in width or 40 body feet or more in length; or</subsection><subsection number="70D-2-102(4)(a)(ii)(B)"> when erected on site, is 400 or more square feet;</subsection></subsection></subsection><subsection number="70D-2-102(4)(b)"> is built on a permanent chassis;</subsection><subsection number="70D-2-102(4)(c)"> is designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities; and</subsection><subsection number="70D-2-102(4)(d)"> includes the plumbing, heating, air-conditioning, and electrical systems.</subsection></subsection><subsection number="70D-2-102(5)"> "Mobile home" means a transportable factory built housing unit built before June 15, 1976, in accordance with a state mobile home code that existed before the National Manufactured Housing Construction and Safety Standards Act of 1974.</subsection><subsection number="70D-2-102(6)"> "Modular home" means a modular unit as defined in Section <xref depth="3" refnumber="15A-1-302" start="0">15A-1-302</xref>.</subsection><subsection number="70D-2-102(7)"> "Mortgage lender" means an entity that performs each of the following related to originating a mortgage loan: <subsection number="70D-2-102(7)(a)"> taking and processing an application;</subsection><subsection number="70D-2-102(7)(b)"> providing a required disclosure;</subsection><subsection number="70D-2-102(7)(c)"> in some circumstances, underwriting the mortgage loan and making the final credit approval decision;</subsection><subsection number="70D-2-102(7)(d)"> closing the mortgage loan in its name;</subsection><subsection number="70D-2-102(7)(e)"> funding the mortgage loan; and</subsection><subsection number="70D-2-102(7)(f)"> selling the mortgage loan to an investor.</subsection></subsection><subsection number="70D-2-102(8)"> "Nationwide database" means the Nationwide Mortgage Licensing System and Registry, authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage loan originators.</subsection><subsection number="70D-2-102(9)"> "Permanently affixed" means anchored to, and supported by, a permanent foundation or installed in accordance with the manufactured housing installation standard code referred to in Section <xref depth="3" refnumber="15A-1-202" start="0">15A-1-202</xref>.</subsection><subsection number="70D-2-102(10)"> "Servicer" means a person who in the regular course of business assumes responsibility for servicing and accepting payments for a mortgage loan.</subsection></section><section number="70D-2-103"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Exemptions.</catchline><tab/>This chapter does not apply to:<subsection number="70D-2-103(1)"> a bona fide nonprofit corporation that grants a first mortgage loan to promote home ownership for low and moderate income borrowers;</subsection><subsection number="70D-2-103(2)"> an agency of the following that grants a first mortgage loan under a specific federal or state law: <subsection number="70D-2-103(2)(a)"> the federal government;</subsection><subsection number="70D-2-103(2)(b)"> a state, county, or municipal government; or</subsection><subsection number="70D-2-103(2)(c)"> a quasi-governmental agency;</subsection></subsection><subsection number="70D-2-103(3)"> a casual lender that makes less than five mortgage loans a year; or</subsection><subsection number="70D-2-103(4)"> a mortgage loan of two years or less.</subsection></section><section number="70D-2-104"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Ordinance or law by political subdivision prohibited.</catchline><subsection number="70D-2-104(1)"> A county subject to <xref depth="0" refid="C17_1800010118000101" refnumber="17" start="0">Title 17, Counties</xref>, and a municipality subject to <xref depth="0" refid="C10_1800010118000101" refnumber="10" start="0">Title 10, Utah Municipal Code</xref>, may not enact an ordinance or law that: <subsection number="70D-2-104(1)(a)"> regulates a term of a mortgage loan on a dwelling; or</subsection><subsection number="70D-2-104(1)(b)"> makes the eligibility of a person to do business with the county or municipality dependent upon a term of a mortgage loan on a dwelling originated or serviced by the person.</subsection></subsection><subsection number="70D-2-104(2)"> Subsection <xref depth="4" refid="C70D-2-S104_1800010118000101" refnumber="70D-2-104(1)" start="0">(1)</xref> does not apply to a term or loan funded in whole or in part with money provided or administered by the county or municipality.</subsection></section></part><part number="70D-2-2"><catchline>Notification to Commissioner</catchline><section number="70D-2-201"><histories><history>Amended by Chapter <modchap sess="2016GS">106</modchap>, 2016 General Session</history><modyear>2016</modyear></histories><catchline>Registration -- Exemptions.</catchline><subsection number="70D-2-201(1)"><subsection number="70D-2-201(1)(a)"> Except as provided in Subsection <xref depth="4" refnumber="70D-2-201(2)" start="0">(2)</xref>, a person may not engage in business as a lender, broker, or servicer in this state before the day on which the person:<subsection number="70D-2-201(1)(a)(i)"> provides evidence satisfactory to the commissioner that the person is registered with the nationwide database; and</subsection><subsection number="70D-2-201(1)(a)(ii)"> pays a fee required by Section <xref depth="3" refnumber="70D-2-203" start="0">70D-2-203</xref>.</subsection></subsection><subsection number="70D-2-201(1)(b)"> The commissioner may by rule, made in accordance with <xref depth="1" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, provide for the transition of persons registering with the nationwide database.</subsection></subsection><subsection number="70D-2-201(2)"> The following persons are exempt from this part, except for a reimbursement or fee described in Subsection <xref depth="4" refnumber="70D-2-203(2)" start="0">70D-2-203(2)</xref>: <subsection number="70D-2-201(2)(a)"> a federally insured depository institution;</subsection><subsection number="70D-2-201(2)(b)"> a wholly owned subsidiary of a depository institution described in Subsection <xref depth="4" refnumber="70D-2-201(2)(a)" start="0">(2)(a)</xref>; and</subsection><subsection number="70D-2-201(2)(c)"> a person who:<subsection number="70D-2-201(2)(c)(i)"> is required to be licensed with the Division of Real Estate pursuant to <xref depth="1" refnumber="61-2c" start="0">Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act</xref>; and</subsection><subsection number="70D-2-201(2)(c)(ii)"> is not a: <subsection number="70D-2-201(2)(c)(ii)(A)"> servicer; or</subsection><subsection number="70D-2-201(2)(c)(ii)(B)"> mortgage lender.</subsection></subsection></subsection></subsection><subsection number="70D-2-201(3)"> A mortgage lender who is required to be registered under this chapter is not exempt from <xref depth="1" refnumber="61-2c" start="0">Title 61, Chapter 2c, Utah Residential Mortgage Practices and Licensing Act</xref>.</subsection></section><section number="70D-2-203"><histories><history>Amended by Chapter <modchap sess="2015GS">284</modchap>, 2015 General Session</history><modyear>2015</modyear></histories><catchline>Fees -- Examination.</catchline><subsection number="70D-2-203(1)"><subsection number="70D-2-203(1)(a)"> A person required to register under this part shall pay to the commissioner:<subsection number="70D-2-203(1)(a)(i)"> a fee of $200 with the person's initial registration; and</subsection><subsection number="70D-2-203(1)(a)(ii)"> an annual fee, on or before December 31 of each year, in an amount to be set by rule of the commissioner subject to Subsection <xref depth="4" refnumber="70D-2-203(1)(b)" start="0">(1)(b)</xref>.</subsection></subsection><subsection number="70D-2-203(1)(b)"> The commissioner:<subsection number="70D-2-203(1)(b)(i)"> subject to Subsection <xref depth="4" refnumber="70D-2-203(1)(b)(ii)" start="0">(1)(b)(ii)</xref>, shall set the annual renewal fee at an amount that generates sufficient revenue to cover the department's costs of administering this chapter; and</subsection><subsection number="70D-2-203(1)(b)(ii)"> may not set an annual renewal fee that exceeds $100 per renewal.</subsection></subsection></subsection><subsection number="70D-2-203(2)"><subsection number="70D-2-203(2)(a)"> The commissioner may require a lender, broker, or servicer to make a record of the lender, broker, or servicer relating to its activities as a lender, broker, or servicer available to the commissioner or the commissioner's authorized representative for examination.</subsection><subsection number="70D-2-203(2)(b)"> A lender, broker, or servicer described in Subsection <xref depth="4" refnumber="70D-2-203(2)(a)" start="0">(2)(a)</xref> shall:<subsection number="70D-2-203(2)(b)(i)"> reimburse the department for travel and other reasonable and necessary costs incurred in the examination described in Subsection <xref depth="4" refnumber="70D-2-203(2)(a)" start="0">(2)(a)</xref>; and</subsection><subsection number="70D-2-203(2)(b)(ii)"> pay to the commissioner a fee set by the commissioner based on an hourly rate per each examiner, not to exceed $55 per hour for each examiner.</subsection></subsection></subsection><subsection number="70D-2-203(3)"> No portion of a fee paid or owed to the commissioner under this section is refundable because a person voluntarily or involuntarily ceases to do business as a lender, broker, or servicer: <subsection number="70D-2-203(3)(a)"> during the period covered by the fee; or</subsection><subsection number="70D-2-203(3)(b)"> before the time of an examination by the commissioner of a record pertaining to a transaction preceding the day on which the person ceases to do business as a lender, broker, or servicer.</subsection></subsection></section></part><part number="70D-2-3"><catchline>Operational Requirements</catchline><section number="70D-2-301"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Record retention.</catchline><tab/>A lender, broker, or servicer shall keep and maintain at all times in its principal place of business the records of a mortgage loan transaction of the lender, broker, or servicer as required by the rules of the commissioner. </section><section number="70D-2-302"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Notice required with loan application.</catchline><subsection number="70D-2-302(1)"> If the following is the case, a lender and broker shall notify in writing a person from whom the lender or broker receives or for whom the lender or broker prepares a written application for a mortgage loan that: <subsection number="70D-2-302(1)(a)"> the mortgage loan applied for may be sold or assigned;</subsection><subsection number="70D-2-302(1)(b)"> the servicing of the loan may be sold or assigned; and</subsection><subsection number="70D-2-302(1)(c)"> the mortgage loan will not necessarily be held or serviced by the lender that originates the mortgage loan.</subsection></subsection><subsection number="70D-2-302(2)"> A lender and broker shall provide a written notice required by this section at the time of receipt or preparation of the written application for a mortgage loan.</subsection></section><section number="70D-2-303"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Notice upon closing -- Ongoing duty to notify -- Statements required.</catchline><subsection number="70D-2-303(1)"> At the time of closing of a mortgage loan, a lender shall notify the mortgagor in writing of: <subsection number="70D-2-303(1)(a)"> the name of the initial servicer that will service the loan; and</subsection><subsection number="70D-2-303(1)(b)"> the address at which a loan payment should be made.</subsection></subsection><subsection number="70D-2-303(2)"><subsection number="70D-2-303(2)(a)"><subsection number="70D-2-303(2)(a)(i)"> If the servicing of a mortgage loan is assigned, the servicer that assigns the servicing and the successor servicer shall each mail, at least 10 days before the due date of the first mortgage payment due after the assignment, a written notice to the mortgagor notifying the mortgagor of: <subsection number="70D-2-303(2)(a)(i)(A)"> the assignment of servicing; and</subsection><subsection number="70D-2-303(2)(a)(i)(B)"> the address at which future loan payments should be made.</subsection></subsection><subsection number="70D-2-303(2)(a)(ii)"> A notice required by this Subsection <xref depth="4" refid="C70D-2-S303_1800010118000101" refnumber="70D-2-303(2)(a)" start="0">(2)(a)</xref> shall be mailed to the mortgagor's last known address contained in the assigning servicer's records.</subsection></subsection><subsection number="70D-2-303(2)(b)"> Unless an assigning servicer regularly provides the information in a monthly statement to a mortgagor, the notice from the assigning servicer shall include the following information in addition to the information required by Subsection <xref depth="4" refid="C70D-2-S303_1800010118000101" refnumber="70D-2-303(2)(a)" start="0">(2)(a)</xref>:<subsection number="70D-2-303(2)(b)(i)"> the date and amount of the payments credited to the account within the previous 12-month period;</subsection><subsection number="70D-2-303(2)(b)(ii)"> the balance in any escrow account held by the servicer; and</subsection><subsection number="70D-2-303(2)(b)(iii)"> the total unpaid balance of the mortgage loan.</subsection></subsection><subsection number="70D-2-303(2)(c)"> The servicer that assigns the servicing and the successor servicer may, at their option, comply with the requirements of this Subsection <xref depth="4" refid="C70D-2-S303_1800010118000101" refnumber="70D-2-303(2)" start="0">(2)</xref> by both signing one notice and mailing the notice to the mortgagor.</subsection><subsection number="70D-2-303(2)(d)"> A signature on a notice required by this section may be printed, stamped, or in another facsimile.</subsection><subsection number="70D-2-303(2)(e)"> A lender and a subsequent servicer of a mortgage loan shall comply with Section <xref depth="3" refid="C7-17-S6_1800010118000101" refnumber="7-17-6" start="0">7-17-6</xref>.</subsection></subsection><subsection number="70D-2-303(3)"><subsection number="70D-2-303(3)(a)"> An inadvertent error in a notice required in Subsection <xref depth="4" refid="C70D-2-S303_1800010118000101" refnumber="70D-2-303(2)" start="0">(2)</xref> may not be construed to waive a payment that would otherwise be due from a mortgagor.</subsection><subsection number="70D-2-303(3)(b)"> A late payment penalty may not be assessed against a mortgagor with respect to a payment that is misdirected because of:<subsection number="70D-2-303(3)(b)(i)"> an error in a notice required in Subsection <xref depth="4" refid="C70D-2-S303_1800010118000101" refnumber="70D-2-303(2)" start="0">(2)</xref>; or</subsection><subsection number="70D-2-303(3)(b)(ii)"> a failure to timely mail a notice required in Subsection <xref depth="4" refid="C70D-2-S303_1800010118000101" refnumber="70D-2-303(2)" start="0">(2)</xref>.</subsection></subsection></subsection><subsection number="70D-2-303(4)"> A lender or servicer must credit to the mortgagor's account a payment received as of the day on which the payment is received or by the next banking day, unless: <subsection number="70D-2-303(4)(a)"> the payment is insufficient to pay the principal, interest, late charges, and reserves then due;</subsection><subsection number="70D-2-303(4)(b)"> the mortgage loan is referred to an attorney because of default; or</subsection><subsection number="70D-2-303(4)(c)"> the payment is received at an address other than the address for payment specified in writing to the mortgagor.</subsection></subsection></section><section number="70D-2-304"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Statement to be provided.</catchline><subsection number="70D-2-304(1)"> Unless a servicer regularly provides the information described in this Subsection <xref depth="4" refid="C70D-2-S304_1800010118000101" refnumber="70D-2-304(1)" start="0">(1)</xref> in a monthly statement to a mortgagor, the servicer shall deliver to a mortgagor, within 15 days after receipt of a written request, a statement of the mortgagor's account including the following information: <subsection number="70D-2-304(1)(a)"> the date and amount of the payments credited to the account within the previous 12-month period;</subsection><subsection number="70D-2-304(1)(b)"> the balance in any escrow account held by the servicer; and</subsection><subsection number="70D-2-304(1)(c)"> the total unpaid balance of the mortgage loan.</subsection></subsection><subsection number="70D-2-304(2)"> A servicer shall provide the first two statements requested for an account in a 12-month period without charge. If more than two statements are requested for the same account in a 12-month period, the servicer may charge a reasonable fee for an additional statement.</subsection></section><section number="70D-2-305"><histories><history>Amended by Chapter <modchap sess="2014GS">97</modchap>, 2014 General Session</history><modyear>2014</modyear></histories><catchline>Fee restrictions.</catchline><subsection number="70D-2-305(1)"> A lender or broker may not accept a fee or deposit from an applicant for a mortgage loan unless at the time the lender or broker accepts the fee or deposit there is a written statement: <subsection number="70D-2-305(1)(a)"> signed by the applicant;</subsection><subsection number="70D-2-305(1)(b)"> stating whether or not the fee or deposit is refundable; and</subsection><subsection number="70D-2-305(1)(c)"> describing the conditions, if any, under which all or a portion of the fee or deposit will be refunded to the applicant.</subsection></subsection><subsection number="70D-2-305(2)"> Notwithstanding Subsection <xref depth="4" refnumber="70D-2-305(1)" start="0">(1)</xref>, a lender or broker may accept a fee or deposit from an applicant for a mortgage loan if the lender or broker receives an email from the applicant acknowledging that the applicant was provided the information required by Subsections <xref depth="4" refnumber="70D-2-305(1)(b)" start="0">(1)(b)</xref> and <xref depth="4" refnumber="70D-2-305(1)(c)" start="0">(c)</xref>.</subsection></section></part><part number="70D-2-4"><catchline>Manufactured and Mobile Homes</catchline><section number="70D-2-401"><histories><history>Amended by Chapter <modchap sess="2013GS">266</modchap>, 2013 General Session</history><modyear>2013</modyear><history>Amended by Chapter <modchap sess="2013GS">399</modchap>, 2013 General Session</history><modyear>2013</modyear></histories><catchline>Qualification of manufactured home or mobile home as improvement to real property -- Requirements -- Removal from property.</catchline><subsection number="70D-2-401(1)"> Except as provided in this section, for purposes of this chapter, a manufactured home or mobile home is considered personal property.</subsection><subsection number="70D-2-401(2)"> For purposes of this chapter, if the requirements of this section are met, a manufactured home or mobile home is: <subsection number="70D-2-401(2)(a)"> considered to be an improvement to real property; and</subsection><subsection number="70D-2-401(2)(b)"> considered as real property.</subsection></subsection><subsection number="70D-2-401(3)"> A manufactured home or mobile home is considered to be an improvement to real property if: <subsection number="70D-2-401(3)(a)"> the manufactured home or mobile home is permanently affixed to real property;</subsection><subsection number="70D-2-401(3)(b)"> the person seeking to have the manufactured home or mobile home considered to be an improvement to real property:<subsection number="70D-2-401(3)(b)(i)"> owns the manufactured home or mobile home;</subsection><subsection number="70D-2-401(3)(b)(ii)"><subsection number="70D-2-401(3)(b)(ii)(A)"> owns the real property to which the manufactured home or mobile home is permanently affixed; or</subsection><subsection number="70D-2-401(3)(b)(ii)(B)"> leases the real property to which the manufactured home or mobile home is permanently affixed and the real property is financed in accordance with Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(4)" start="0">(4)</xref>; and</subsection></subsection><subsection number="70D-2-401(3)(b)(iii)"> meets the requirements of: <subsection number="70D-2-401(3)(b)(iii)(A)"> Subsections <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)" start="0">(5)</xref> and <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)" start="0">(6)</xref>; or</subsection><subsection number="70D-2-401(3)(b)(iii)(B)"> Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)" start="0">(8)</xref>; and</subsection></subsection></subsection><subsection number="70D-2-401(3)(c)"><subsection number="70D-2-401(3)(c)(i)"> in accordance with Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(7)" start="0">(7)</xref>, the following are recorded by the county recorder: <subsection number="70D-2-401(3)(c)(i)(A)"> the affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(7)" start="0">(7)</xref>; and</subsection><subsection number="70D-2-401(3)(c)(i)(B)"> the receipt of surrender of ownership documents described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(7)" start="0">(7)</xref>; or</subsection></subsection><subsection number="70D-2-401(3)(c)(ii)"> the affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)" start="0">(8)</xref> is recorded by the county recorder in accordance with Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)" start="0">(8)</xref>.</subsection></subsection></subsection><subsection number="70D-2-401(4)"> For purposes of Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(3)(b)(ii)(B)" start="0">(3)(b)(ii)(B)</xref>, a manufactured home or mobile home shall be financed in accordance with the guidelines established by: <subsection number="70D-2-401(4)(a)"> the Federal Home Loan Mortgage Corporation;</subsection><subsection number="70D-2-401(4)(b)"> the Federal National Mortgage Association;</subsection><subsection number="70D-2-401(4)(c)"> the United States Department of Agriculture; or</subsection><subsection number="70D-2-401(4)(d)"> another entity that requires as part of the entity's financing program restrictions:<subsection number="70D-2-401(4)(d)(i)"> on: <subsection number="70D-2-401(4)(d)(i)(A)"> ownership; and</subsection><subsection number="70D-2-401(4)(d)(i)(B)"> actions affecting title and possession; and</subsection></subsection><subsection number="70D-2-401(4)(d)(ii)"> if the restrictions described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(4)(d)(i)" start="0">(4)(d)(i)</xref> are similar to restrictions imposed by one or more of the entities described in Subsections <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(4)(a)" start="0">(4)(a)</xref> through <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(4)(c)" start="0">(c)</xref>.</subsection></subsection></subsection><subsection number="70D-2-401(5)"><subsection number="70D-2-401(5)(a)"> An owner of a manufactured home or mobile home seeking to have the manufactured home or mobile home considered to be an improvement to real property and considered real property shall complete an affidavit of affixture.</subsection><subsection number="70D-2-401(5)(b)"> An affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)(a)" start="0">(5)(a)</xref> shall contain:<subsection number="70D-2-401(5)(b)(i)"> the vehicle identification numbers of the manufactured home or mobile home;</subsection><subsection number="70D-2-401(5)(b)(ii)"> the legal description of the real property to which the manufactured home or mobile home is permanently affixed;</subsection><subsection number="70D-2-401(5)(b)(iii)"> a statement certified by the assessor of the county in which the manufactured home or mobile home is located that the owner of the manufactured home or mobile home: <subsection number="70D-2-401(5)(b)(iii)(A)"> is not required to pay personal property tax in this state on the manufactured home or mobile home; or</subsection><subsection number="70D-2-401(5)(b)(iii)(B)"> if the manufactured home or mobile home is subject to personal property tax in this state, has paid all current and prior year personal property taxes assessed on the manufactured home or mobile home;</subsection></subsection><subsection number="70D-2-401(5)(b)(iv)"> a description of any security interests in the manufactured home or mobile home; and</subsection><subsection number="70D-2-401(5)(b)(v)"> a receipt of surrender of ownership documents issued by the Motor Vehicle Division of the State Tax Commission in accordance with Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)" start="0">(6)</xref>.</subsection></subsection></subsection><subsection number="70D-2-401(6)"><subsection number="70D-2-401(6)(a)"> The Motor Vehicle Division of the State Tax Commission shall issue a receipt of surrender of ownership documents under Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)(b)(v)" start="0">(5)(b)(v)</xref> if an owner described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)" start="0">(5)</xref> surrenders to the Motor Vehicle Division the:<subsection number="70D-2-401(6)(a)(i)"> manufacturer's original certificate of origin; or</subsection><subsection number="70D-2-401(6)(a)(ii)"> title to the manufactured home or mobile home.</subsection></subsection><subsection number="70D-2-401(6)(b)"> After issuing the receipt of surrender of ownership documents in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)(a)" start="0">(6)(a)</xref>, the Motor Vehicle Division shall maintain a permanent record of:<subsection number="70D-2-401(6)(b)(i)"> the receipt of surrender of ownership documents; and</subsection><subsection number="70D-2-401(6)(b)(ii)"> the certificate or title described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)(a)(ii)" start="0">(6)(a)(ii)</xref>.</subsection></subsection></subsection><subsection number="70D-2-401(7)"><subsection number="70D-2-401(7)(a)"> An owner shall present to the county recorder:<subsection number="70D-2-401(7)(a)(i)"> the affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)" start="0">(5)</xref>; and</subsection><subsection number="70D-2-401(7)(a)(ii)"> the receipt of surrender of ownership documents described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)" start="0">(6)</xref>.</subsection></subsection><subsection number="70D-2-401(7)(b)"> A county recorder who receives the documents described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(7)(a)" start="0">(7)(a)</xref> shall record the documents.</subsection><subsection number="70D-2-401(7)(c)"> An owner of property described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)" start="0">(5)</xref> shall provide a copy of the recorded affidavit of affixture to:<subsection number="70D-2-401(7)(c)(i)"> the Motor Vehicle Division of the State Tax Commission; and</subsection><subsection number="70D-2-401(7)(c)(ii)"> the assessor of the county in which the manufactured home or mobile home is located.</subsection></subsection></subsection><subsection number="70D-2-401(8)"><subsection number="70D-2-401(8)(a)"> If an owner cannot comply with Subsections <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(5)" start="0">(5)</xref>, <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)" start="0">(6)</xref>, and <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(7)" start="0">(7)</xref> because the certificate of title for the manufactured home or mobile home is lost or destroyed and a duplicate title cannot be obtained, the owner of the manufactured home or mobile home seeking to have the manufactured home or mobile home considered to be an improvement to real property and considered real property shall complete an affidavit of affixture meeting the requirements of Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)(b)" start="0">(8)(b)</xref>.</subsection><subsection number="70D-2-401(8)(b)"> An affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)(a)" start="0">(8)(a)</xref> shall contain the following from the owner:<subsection number="70D-2-401(8)(b)(i)"> the vehicle identification number of the manufactured home or mobile home;</subsection><subsection number="70D-2-401(8)(b)(ii)"> the legal description of the real property to which the manufactured home or mobile home is permanently affixed;</subsection><subsection number="70D-2-401(8)(b)(iii)"> a statement that the manufactured home or mobile home is permanently affixed to the real property;</subsection><subsection number="70D-2-401(8)(b)(iv)"> a statement that the manufactured home or mobile home is not registered with nor being assessed a fee in lieu of taxes by the Motor Vehicle Division of the State Tax Commission;</subsection><subsection number="70D-2-401(8)(b)(v)"> a statement that the manufactured home or mobile home is being taxed as an improvement to real estate by the county assessor as permitted under Section <xref depth="3" refid="C59-2-S1503_1800010118000101" refnumber="59-2-1503" start="0">59-2-1503</xref>;</subsection><subsection number="70D-2-401(8)(b)(vi)"> a statement that the certificate of title described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(6)(a)(ii)" start="0">(6)(a)(ii)</xref> has been lost or destroyed and the owner is unable to secure a duplicate title; and</subsection><subsection number="70D-2-401(8)(b)(vii)"> a statement that the manufacturer's identification number or numbers are included in the deed or loan document recorded with the county recorder.</subsection></subsection><subsection number="70D-2-401(8)(c)"> The affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)(b)" start="0">(8)(b)</xref> may be substantially in the following form:<eol/><center>"AFFIDAVIT OF AFFIXTURE</center><eol/> I,[Affiant's Name], being first duly sworn, do hereby depose and say:<eol/> 1. I am a resident of [County], State of [State], and I have personal knowledge of the facts contained in this affidavit and I am making this affidavit to comply with Utah Code Ann. Section <xref depth="3" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401" start="0">70D-2-401</xref>.<eol/> 2. I own a fee simple interest in the following described property ("Real Property") located at [City or Town], [County], State of Utah, more particularly described as:<eol/> [legal description].<eol/> 3. I own a [manufactured home or mobile home] ("the Home") described by the manufacturer's identification number(s): [VIN or other manufacturer's identifying number].<eol/> 4. The Home is permanently affixed to the Real Property.<eol/> 5. The Home is not registered with the Utah Motor Vehicles Division.<eol/> 6. The Home is taxed as an improvement to real estate by the [County] County Assessor as permitted under Utah Code Ann. Section <xref depth="3" refid="C59-2-S1503_1800010118000101" refnumber="59-2-1503" start="0">59-2-1503</xref>.<eol/> 7. The Certificate of Title for the Home has been lost or destroyed and I am unable to secure a duplicate title.<eol/> 8. The manufacturer's identification number(s) are included in the deed that is being recorded concurrently with this affidavit.<eol/> DATED this ____ day of _______________, 20__.<eol/> _____________________________<eol/> The foregoing instrument was acknowledged before me this ____ day of ______________, 20__, by ________________________.<eol/> ___________________________<eol/> Notary Public<eol/> My Commission Expires:<eol/> Residing at:_______________<eol/> ______________________"</subsection><subsection number="70D-2-401(8)(d)"> A county recorder who receives an affidavit of affixture described in Subsection <xref depth="4" refid="C70D-2-S401_1800010118000101" refnumber="70D-2-401(8)(b)" start="0">(8)(b)</xref> shall record the affidavit of affixture.</subsection></subsection><subsection number="70D-2-401(9)"> A lien on the manufactured home or mobile home that is considered to be an improvement to real property shall be perfected in the manner provided for the perfection of a lien on real property.</subsection><subsection number="70D-2-401(10)"> If a manufactured home or mobile home owner separates the manufactured home or mobile home from the real property, the owner may acquire a new title by submitting to the Motor Vehicle Division of the State Tax Commission: <subsection number="70D-2-401(10)(a)"> a recorded affidavit that the manufactured home or mobile home is removed from the real property; and</subsection><subsection number="70D-2-401(10)(b)"> an application for a new title.</subsection></subsection><subsection number="70D-2-401(11)"> The determination of whether a manufactured home or mobile home is considered real property or personal property under this section may not be considered in determining whether the manufactured home or mobile home is real property or personal property for purposes of taxation under <xref depth="1" refid="C59-2_1800010118000101" refnumber="59-2" start="0">Title 59, Chapter 2, Property Tax Act</xref>.</subsection><subsection number="70D-2-401(12)"> This section does not apply to a modular home.</subsection></section><section number="70D-2-401.5"><histories><history>Enacted by Chapter <modchap sess="2013GS">399</modchap>, 2013 General Session</history><modyear>2013</modyear></histories><catchline>Qualification of modular home as improvement to real property -- Requirements.</catchline><subsection number="70D-2-401.5(1)"> Except as provided in this section, for purposes of this chapter, a modular home is considered to be personal property.</subsection><subsection number="70D-2-401.5(2)"> Once a modular home is constructed on real property and the modular home is taxed as real property, it is presumed that the owner of the real property also owns the modular home.</subsection><subsection number="70D-2-401.5(3)"> For purposes of this chapter, if the requirements of this section are met, a modular home is: <subsection number="70D-2-401.5(3)(a)"> considered to be an improvement to real property; and</subsection><subsection number="70D-2-401.5(3)(b)"> considered to be real property.</subsection></subsection><subsection number="70D-2-401.5(4)"> A modular home is considered to be an improvement to real property if: <subsection number="70D-2-401.5(4)(a)"> the modular home is permanently affixed to real property;</subsection><subsection number="70D-2-401.5(4)(b)"> the person seeking to have the modular home considered to be an improvement to real property:<subsection number="70D-2-401.5(4)(b)(i)"> owns the real property to which the modular home is or will be permanently affixed; and</subsection><subsection number="70D-2-401.5(4)(b)(ii)"> controls the use and possession of the modular home;</subsection></subsection><subsection number="70D-2-401.5(4)(c)"> the person described in Subsection <xref depth="4" refid="C70D-2-S401.5_1800010118000101" refnumber="70D-2-401.5(4)(b)" start="0">(4)(b)</xref> records the document required to be recorded under Subsection <xref depth="4" refid="C70D-2-S401.5_1800010118000101" refnumber="70D-2-401.5(6)" start="0">(6)</xref>; and</subsection><subsection number="70D-2-401.5(4)(d)"> the modular home is assessed as real property for purposes of property taxes.</subsection></subsection><subsection number="70D-2-401.5(5)"><subsection number="70D-2-401.5(5)(a)"> The person seeking to have a modular home considered to be an improvement to real property and considered to be real property shall complete an affidavit of real property.</subsection><subsection number="70D-2-401.5(5)(b)"> An affidavit of real property described in Subsection <xref depth="4" refid="C70D-2-S401.5_1800010118000101" refnumber="70D-2-401.5(5)(a)" start="0">(5)(a)</xref> shall contain:<subsection number="70D-2-401.5(5)(b)(i)"> the legal description of the real property to which the modular home is or will be permanently affixed;</subsection><subsection number="70D-2-401.5(5)(b)(ii)"> a statement certified by the assessor of the county in which the modular home is located that the modular home is taxed as real property for purposes of property taxes; and</subsection><subsection number="70D-2-401.5(5)(b)(iii)"> a statement that all liens or security interests in the modular home under <xref depth="0" refid="C70A_1800010118000101" refnumber="70A" start="0">Title 70A, Uniform Commercial Code</xref>, as personal property have been released.</subsection></subsection></subsection><subsection number="70D-2-401.5(6)"><subsection number="70D-2-401.5(6)(a)"> The person seeking treatment of a modular home as real property shall present to the county recorder the affidavit of real property described in Subsection <xref depth="4" refid="C70D-2-S401.5_1800010118000101" refnumber="70D-2-401.5(5)" start="0">(5)</xref>.</subsection><subsection number="70D-2-401.5(6)(b)"> A county recorder who receives an affidavit of real property described in Subsection <xref depth="4" refid="C70D-2-S401.5_1800010118000101" refnumber="70D-2-401.5(6)(a)" start="0">(6)(a)</xref> shall record the affidavit of real property.</subsection><subsection number="70D-2-401.5(6)(c)"> A person described in Subsection <xref depth="4" refid="C70D-2-S401.5_1800010118000101" refnumber="70D-2-401.5(6)(a)" start="0">(6)(a)</xref> shall provide a copy of the recorded affidavit of real property to the assessor of the county in which the modular home is located.</subsection></subsection><subsection number="70D-2-401.5(7)"> A lien on a modular home that is considered to be an improvement to real property shall be perfected in the manner provided for the perfection of a lien on real property.</subsection></section></part><part number="70D-2-5"><catchline>Remedies and Enforcement</catchline><section number="70D-2-501"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Civil liability -- Misdemeanor.</catchline><subsection number="70D-2-501(1)"><subsection number="70D-2-501(1)(a)"> A lender, broker, or servicer who violates this chapter is liable to an injured party for actual damages.</subsection><subsection number="70D-2-501(1)(b)"> In an action filed to determine the liability of a lender, broker, or servicer for damages under this chapter, the prevailing party is entitled to court costs and attorney fees.</subsection></subsection><subsection number="70D-2-501(2)"> A person who wilfully violates this chapter is guilty of a class A misdemeanor.</subsection></section><section number="70D-2-502"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Enforcement -- Rulemaking -- Federal law.</catchline><subsection number="70D-2-502(1)"> The commissioner may: <subsection number="70D-2-502(1)(a)"> in accordance with <xref depth="1" refid="C63G-4_1800010118000101" refnumber="63G-4" start="0">Title 63G, Chapter 4, Administrative Procedures Act</xref>:<subsection number="70D-2-502(1)(a)(i)"> receive and act on a complaint;</subsection><subsection number="70D-2-502(1)(a)(ii)"> take action designed to obtain voluntary compliance with this chapter; or</subsection><subsection number="70D-2-502(1)(a)(iii)"> commence a proceeding on the commissioner's own initiative to enforce compliance with this chapter;</subsection></subsection><subsection number="70D-2-502(1)(b)"> counsel a person or group on the person's or group's rights and duties under this chapter;</subsection><subsection number="70D-2-502(1)(c)"> make rules in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, to:<subsection number="70D-2-502(1)(c)(i)"> restrict or prohibit a lending or servicing practice that is misleading, unfair, or abusive;</subsection><subsection number="70D-2-502(1)(c)(ii)"> promote or assure fair and full disclosure of the terms and conditions of an agreement or communication between: <subsection number="70D-2-502(1)(c)(ii)(A)"> a lender or servicer; and</subsection><subsection number="70D-2-502(1)(c)(ii)(B)"> a borrower; or</subsection></subsection><subsection number="70D-2-502(1)(c)(iii)"> promote or assure uniform application of or to resolve ambiguities in applicable state or federal laws or federal regulations; and</subsection></subsection><subsection number="70D-2-502(1)(d)"> employ hearing examiners, clerks, and other employees and agents as necessary to perform the commissioner's duties under this chapter.</subsection></subsection><subsection number="70D-2-502(2)"><subsection number="70D-2-502(2)(a)"> A person subject to this chapter violates this chapter if the person violates a federal law:<subsection number="70D-2-502(2)(a)(i)"> that is applicable to the person because of the activities that make the person subject to this chapter; and</subsection><subsection number="70D-2-502(2)(a)(ii)"> pursuant to the terms of the federal law in effect on the day the person violates the federal law.</subsection></subsection><subsection number="70D-2-502(2)(b)"> The commissioner shall by rule, made in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, and consistent with this chapter, designate which one or more federal laws are applicable to a person described in Subsection <xref depth="4" refid="C70D-2-S502_1800010118000101" refnumber="70D-2-502(2)(a)" start="0">(2)(a)</xref>.</subsection><subsection number="70D-2-502(2)(c)"><subsection number="70D-2-502(2)(c)(i)"> Notwithstanding the other provisions of this chapter, only the commissioner may enforce or bring an action under this chapter for a violation described in this Subsection <xref depth="4" refid="C70D-2-S502_1800010118000101" refnumber="70D-2-502(2)" start="0">(2)</xref>.</subsection><subsection number="70D-2-502(2)(c)(ii)"> The commissioner may bring an action under this Subsection <xref depth="4" refid="C70D-2-S502_1800010118000101" refnumber="70D-2-502(2)" start="0">(2)</xref> in state court.</subsection></subsection></subsection></section><section number="70D-2-503"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Investigation.</catchline><subsection number="70D-2-503(1)"><subsection number="70D-2-503(1)(a)"> If the commissioner has probable cause to believe that a lender, broker, or servicer has violated a law, rule, or federal regulation relating to its business or an obligation to a mortgagor, the commissioner may investigate to determine if a violation has been committed.</subsection><subsection number="70D-2-503(1)(b)"> To the extent necessary for an investigation under this section, the commissioner may:<subsection number="70D-2-503(1)(b)(i)"> administer an oath or affirmation under penalty of perjury; and</subsection><subsection number="70D-2-503(1)(b)(ii)"> upon the commissioner's own motion or upon request of any person: <subsection number="70D-2-503(1)(b)(ii)(A)"> subpoena a witness;</subsection><subsection number="70D-2-503(1)(b)(ii)(B)"> compel the attendance of a witness;</subsection><subsection number="70D-2-503(1)(b)(ii)(C)"> adduce evidence under penalty of perjury; and</subsection><subsection number="70D-2-503(1)(b)(ii)(D)"> require the production of a matter that is relevant to the investigation, including:<subsection number="70D-2-503(1)(b)(ii)(D)(I)"> the existence, description, nature, custody, condition, and location of a record or other tangible thing of any kind or nature; and</subsection><subsection number="70D-2-503(1)(b)(ii)(D)(II)"> the identity and location of a person having knowledge of a relevant fact, or any other matter reasonably calculated to lead to the discovery of admissible evidence.</subsection></subsection></subsection></subsection></subsection><subsection number="70D-2-503(2)"><subsection number="70D-2-503(2)(a)"> If the commissioner requires a person to produce a record that is located outside this state, the person shall:<subsection number="70D-2-503(2)(a)(i)"> make the record available to the commissioner at a convenient location within this state; or</subsection><subsection number="70D-2-503(2)(a)(ii)"> pay the reasonable and necessary expenses for the department to examine the record at the place where the record is maintained.</subsection></subsection><subsection number="70D-2-503(2)(b)"> The commissioner may designate one or more representatives, including an official of the state in which a record is located, to inspect the record on behalf of the commissioner.</subsection></subsection><subsection number="70D-2-503(3)"> Upon failure without lawful excuse to obey a subpoena or give testimony, and upon reasonable notice to affected persons, the commissioner may apply to the Third District Court or to any other district court for an order compelling compliance.</subsection><subsection number="70D-2-503(4)"> Unless otherwise required by law, the commissioner may not make public: <subsection number="70D-2-503(4)(a)"> the name or identity of a person whose acts or conduct the commissioner investigates pursuant to this section; or</subsection><subsection number="70D-2-503(4)(b)"> the facts disclosed in the investigation.</subsection></subsection><subsection number="70D-2-503(5)"> Subsection <xref depth="4" refid="C70D-2-S503_1800010118000101" refnumber="70D-2-503(4)" start="0">(4)</xref> does not apply to a disclosure in an enforcement proceeding conducted pursuant to this chapter.</subsection></section><section number="70D-2-504"><histories><history>Amended by Chapter <modchap sess="2024GS">158</modchap>, 2024 General Session</history><modyear>2024</modyear></histories><catchline>Orders.</catchline><subsection number="70D-2-504(1)">If the commissioner determines that a person engaging in business as a lender, broker, or servicer is violating, has violated, or the commissioner has reasonable cause to believe is about to violate this chapter or a rule of the commissioner made under this chapter, the commissioner may:<subsection number="70D-2-504(1)(a)">order the person to cease and desist from committing a further violation; and</subsection><subsection number="70D-2-504(1)(b)">in the most serious instances may prohibit the person from continuing to engage in business as a lender, broker, or servicer.</subsection></subsection><subsection number="70D-2-504(2)"><subsection number="70D-2-504(2)(a)">If the commissioner determines that a practice that the commissioner alleges is unlawful should be enjoined during the pendency of a proceeding incident to an allegation, the commissioner may issue a temporary order in accordance with Section <xref depth="3" refnumber="63G-4-502">63G-4-502</xref>: <subsection number="70D-2-504(2)(a)(i)">at the commencement of the proceedings; or</subsection><subsection number="70D-2-504(2)(a)(ii)">at any time after the proceeding commences.</subsection></subsection><subsection number="70D-2-504(2)(b)">For purposes of Section <xref depth="3" refnumber="63G-4-502">63G-4-502</xref>, an immediate and significant danger to the public health, safety, or welfare exists if the commissioner finds from specific facts supported by sworn statement or the records of a person subject to the order that loan applicants or mortgagors are otherwise likely to suffer immediate and irreparable injury, loss, or damage before a proceeding incident to a final order can be completed.</subsection></subsection><subsection number="70D-2-504(3)">The commissioner may not award damages or penalties under this chapter against a lender, broker, or servicer.</subsection><subsection number="70D-2-504(4)"><subsection number="70D-2-504(4)(a)">An order issued by the commissioner under this chapter shall:<subsection number="70D-2-504(4)(a)(i)">be in writing;</subsection><subsection number="70D-2-504(4)(a)(ii)">be delivered to or served upon the person affected; and</subsection><subsection number="70D-2-504(4)(a)(iii)">specify the order's effective date, which may be immediate or at a later date.</subsection></subsection><subsection number="70D-2-504(4)(b)">An order remains in effect until:<subsection number="70D-2-504(4)(b)(i)">withdrawn by the commissioner; or</subsection><subsection number="70D-2-504(4)(b)(ii)">terminated by a court order.</subsection></subsection><subsection number="70D-2-504(4)(c)">Upon an application made on or after the order's effective date to a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, the court may enforce an order of the commissioner ex parte and without notice by an order to comply entered by the court.</subsection></subsection></section><section number="70D-2-505"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Relief from order.</catchline><tab/>A person aggrieved by a rule, order, temporary order, decision, ruling, or other act or failure to act by the commissioner under this chapter is entitled to judicial review as provided under <xref depth="1" refid="" refnumber="63G-4" start="0">Title 63G, Chapter 4, Administrative Procedures Act</xref>. </section><section number="70D-2-506"><histories><history>Renumbered and Amended by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Civil liability.</catchline><tab/>Nothing in this chapter limits any civil liability that may exist against a lender, broker, or servicer for breach of contract or other wrong committed against a mortgagor. </section></part></chapter><chapter number="70D-3"><catchline>Financial Institution Loan Originator Licensing Act</catchline><part number="70D-3-1"><catchline>General Provisions</catchline><section number="70D-3-101"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Title.</catchline><tab/>This chapter is known as the "Financial Institution Loan Originator Licensing Act." </section><section number="70D-3-102"><histories><history>Amended by Chapter <modchap sess="2014GS">97</modchap>, 2014 General Session</history><modyear>2014</modyear></histories><catchline>Definitions.</catchline><tab/>As used in this chapter:<subsection number="70D-3-102(1)"> "Administrative or clerical tasks" means: <subsection number="70D-3-102(1)(a)"> the receipt, collection, and distribution of information common for the process or underwriting of a loan in the mortgage industry; and</subsection><subsection number="70D-3-102(1)(b)"> a communication with a consumer to obtain information necessary for the processing or underwriting of a residential mortgage loan.</subsection></subsection><subsection number="70D-3-102(2)"> "Affiliate" shall be defined by the commissioner by rule made in accordance with <xref depth="1" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>.</subsection><subsection number="70D-3-102(3)"> "Applicant" means an individual applying for a license under this chapter.</subsection><subsection number="70D-3-102(4)"> "Approved examination provider" means a person approved by the nationwide database as an approved test provider.</subsection><subsection number="70D-3-102(5)"> "Business as a loan originator" means for compensation or in the expectation of compensation to engage in an act that makes an individual a loan originator.</subsection><subsection number="70D-3-102(6)"> "Clerical or support duties" includes after the receipt of an application for a residential mortgage loan: <subsection number="70D-3-102(6)(a)"> the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; and</subsection><subsection number="70D-3-102(6)(b)"> communicating with a consumer to obtain the information necessary for the processing or underwriting of the residential mortgage loan, to the extent that the communication does not include:<subsection number="70D-3-102(6)(b)(i)"> offering or negotiating a residential mortgage loan rate or term; or</subsection><subsection number="70D-3-102(6)(b)(ii)"> counseling a consumer about a residential mortgage loan rate or term.</subsection></subsection></subsection><subsection number="70D-3-102(7)"> "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: <subsection number="70D-3-102(7)(a)"> services;</subsection><subsection number="70D-3-102(7)(b)"> personal or real property; or</subsection><subsection number="70D-3-102(7)(c)"> another thing of value.</subsection></subsection><subsection number="70D-3-102(8)"> "Continuing education" means education taken by an individual licensed under this chapter in order to meet the education requirements imposed by Section <xref depth="3" refnumber="70D-3-303" start="0">70D-3-303</xref> to renew a license under this chapter.</subsection><subsection number="70D-3-102(9)"> "Covered subsidiary" means a subsidiary that is: <subsection number="70D-3-102(9)(a)"> owned and controlled by a depository institution; and</subsection><subsection number="70D-3-102(9)(b)"> regulated by a federal banking agency.</subsection></subsection><subsection number="70D-3-102(10)"> "Federal banking agency" means: <subsection number="70D-3-102(10)(a)"> the Board of Governors of the Federal Reserve System;</subsection><subsection number="70D-3-102(10)(b)"> the Comptroller of the Currency;</subsection><subsection number="70D-3-102(10)(c)"> the National Credit Union Administration; or</subsection><subsection number="70D-3-102(10)(d)"> the Federal Deposit Insurance Corporation.</subsection></subsection><subsection number="70D-3-102(11)"> "Licensee" means an individual licensed under this chapter.</subsection><subsection number="70D-3-102(12)"><subsection number="70D-3-102(12)(a)"> Except as provided in Subsection <xref depth="4" refnumber="70D-3-102(12)(b)" start="0">(12)(b)</xref>, "loan originator" means an individual who for compensation or in the expectation of compensation:<subsection number="70D-3-102(12)(a)(i)"> takes a residential mortgage loan application; or</subsection><subsection number="70D-3-102(12)(a)(ii)"> offers or negotiates a term of a residential mortgage loan.</subsection></subsection><subsection number="70D-3-102(12)(b)"> "Loan originator" does not include:<subsection number="70D-3-102(12)(b)(i)"> an individual who is engaged solely as a loan processor or underwriter;</subsection><subsection number="70D-3-102(12)(b)(ii)"> unless compensated by a lender, broker, other loan originator, or an agent of a lender, broker, or other loan originator, a person who: <subsection number="70D-3-102(12)(b)(ii)(A)"> only performs real estate brokerage activities; and</subsection><subsection number="70D-3-102(12)(b)(ii)(B)"> is licensed under <xref depth="1" refnumber="61-2f" start="0">Title 61, Chapter 2f, Real Estate Licensing and Practices Act</xref>;</subsection></subsection><subsection number="70D-3-102(12)(b)(iii)"> a person who is solely involved in extension of credit relating to a timeshare plan, as defined in 11 U.S.C. Sec. 101(53D); or</subsection><subsection number="70D-3-102(12)(b)(iv)"> an attorney licensed to practice law in this state who, in the course of the attorney's practice as an attorney, assists a person in obtaining a residential mortgage loan.</subsection></subsection></subsection><subsection number="70D-3-102(13)"> "Loan processor or underwriter" means an individual who as an employee performs clerical or support duties: <subsection number="70D-3-102(13)(a)"> at the direction of and subject to the supervision and instruction of:<subsection number="70D-3-102(13)(a)(i)"> a licensee; or</subsection><subsection number="70D-3-102(13)(a)(ii)"> a registered loan originator; and</subsection></subsection><subsection number="70D-3-102(13)(b)"> as an employee of:<subsection number="70D-3-102(13)(b)(i)"> the licensee; or</subsection><subsection number="70D-3-102(13)(b)(ii)"> a registered loan originator.</subsection></subsection></subsection><subsection number="70D-3-102(14)"> "Nationwide database" means the Nationwide Mortgage Licensing System and Registry, authorized under Secure and Fair Enforcement for Mortgage Licensing, 12 U.S.C. Sec. 5101 et seq.</subsection><subsection number="70D-3-102(15)"> "Nontraditional mortgage product" means a mortgage product other than a 30-year fixed rate mortgage.</subsection><subsection number="70D-3-102(16)"> "Owned and controlled by a depository institution" may be defined by rule made by the commissioner in accordance with <xref depth="1" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>.</subsection><subsection number="70D-3-102(17)"> "Prelicensing education" means education taken by an individual seeking to be licensed under this chapter in order to meet the education requirements imposed by Section <xref depth="3" refnumber="70D-3-301" start="0">70D-3-301</xref> for an individual to obtain a license under this chapter.</subsection><subsection number="70D-3-102(18)"> "Registered loan originator" means an individual who: <subsection number="70D-3-102(18)(a)"> engages in an act as a loan originator only as an employee of:<subsection number="70D-3-102(18)(a)(i)"> a depository institution;</subsection><subsection number="70D-3-102(18)(a)(ii)"> a covered subsidiary; or</subsection><subsection number="70D-3-102(18)(a)(iii)"> an institution regulated by the Farm Credit Administration; and</subsection></subsection><subsection number="70D-3-102(18)(b)"> is registered with, and maintains a unique identifier through, the nationwide database.</subsection></subsection><subsection number="70D-3-102(19)"><subsection number="70D-3-102(19)(a)"> Subject to Subsection <xref depth="4" refnumber="70D-3-102(19)(b)" start="0">(19)(b)</xref>, "residential mortgage loan" means:<subsection number="70D-3-102(19)(a)(i)"> a mortgage loan; or</subsection><subsection number="70D-3-102(19)(a)(ii)"> a loan that is: <subsection number="70D-3-102(19)(a)(ii)(A)"> secured by a mortgage; and</subsection><subsection number="70D-3-102(19)(a)(ii)(B)"> subject to <xref depth="0" refnumber="70C" start="0">Title 70C, Utah Consumer Credit Code</xref>.</subsection></subsection></subsection><subsection number="70D-3-102(19)(b)"> A loan described in Subsection <xref depth="4" refnumber="70D-3-102(19)(a)" start="0">(19)(a)</xref> is a "residential mortgage loan" only if the mortgage securing the loan is on:<subsection number="70D-3-102(19)(b)(i)"> a dwelling located in the state; or</subsection><subsection number="70D-3-102(19)(b)(ii)"> real property located in the state, upon which is constructed or intended to be constructed a dwelling.</subsection></subsection></subsection><subsection number="70D-3-102(20)"> "Unique identifier" is as defined in 12 U.S.C. Sec. 5102.</subsection></section><section number="70D-3-103"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>General powers and duties of commissioner.</catchline><tab/>Subject to this chapter:<subsection number="70D-3-103(1)"> In accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, the commissioner may make rules authorized by this chapter, including: <subsection number="70D-3-103(1)(a)"> providing for an interim procedure for:<subsection number="70D-3-103(1)(a)(i)"> licensing; and</subsection><subsection number="70D-3-103(1)(a)(ii)"> acceptance of an application; and</subsection></subsection><subsection number="70D-3-103(1)(b)"> coordination between filings required under this chapter and:<subsection number="70D-3-103(1)(b)(i)"><xref depth="0" refid="C70C_1800010118000101" refnumber="70C" start="0">Title 70C, Utah Consumer Credit Code</xref>; or</subsection><subsection number="70D-3-103(1)(b)(ii)"><xref depth="1" refid="C70D-2_1800010118000101" refnumber="70D-2" start="1">Chapter 2, Mortgage Lending and Servicing Act</xref>.</subsection></subsection></subsection><subsection number="70D-3-103(2)"> The commissioner may enter into a relationship or contract with the nationwide database or another entity designated by the nationwide database to do the following related to a licensee or other person subject to this chapter: <subsection number="70D-3-103(2)(a)"> collect or maintain a record; and</subsection><subsection number="70D-3-103(2)(b)"> process a transaction fee or other fee.</subsection></subsection><subsection number="70D-3-103(3)"> The commissioner shall regularly report the following to the nationwide database: <subsection number="70D-3-103(3)(a)"> a violation of this chapter;</subsection><subsection number="70D-3-103(3)(b)"> disciplinary action under Section <xref depth="3" refid="C70D-3-S501_1800010118000101" refnumber="70D-3-501" start="0">70D-3-501</xref>; and</subsection><subsection number="70D-3-103(3)(c)"> other information relevant to this chapter.</subsection></subsection></section></part><part number="70D-3-2"><catchline>Licensing Requirements and Procedures</catchline><section number="70D-3-201"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Licensing required -- Exemptions.</catchline><subsection number="70D-3-201(1)"><subsection number="70D-3-201(1)(a)"> On or after January 1, 2011, except as provided in Subsection <xref depth="4" refid="C70D-3-S201_1800010118000101" refnumber="70D-3-201(2)" start="0">(2)</xref>, an individual described in Subsection <xref depth="4" refid="C70D-3-S201_1800010118000101" refnumber="70D-3-201(1)(b)" start="0">(1)(b)</xref> may not engage in the business of a loan originator unless that individual:<subsection number="70D-3-201(1)(a)(i)"> is licensed under this chapter; or</subsection><subsection number="70D-3-201(1)(a)(ii)"> is a registered loan originator.</subsection></subsection><subsection number="70D-3-201(1)(b)"> This Subsection <xref depth="4" refid="C70D-3-S201_1800010118000101" refnumber="70D-3-201(1)" start="0">(1)</xref> applies to an employee or agent of:<subsection number="70D-3-201(1)(b)(i)"> a depository institution;</subsection><subsection number="70D-3-201(1)(b)(ii)"> a subsidiary of a depository institution; or</subsection><subsection number="70D-3-201(1)(b)(iii)"> an affiliate of a depository institution.</subsection></subsection></subsection><subsection number="70D-3-201(2)"> An individual described in Subsection <xref depth="4" refid="C70D-3-S201_1800010118000101" refnumber="70D-3-201(1)(b)" start="0">(1)(b)</xref> may engage in the business of a loan originator without being licensed under this chapter or a registered loan originator when acting as a loan processor or underwriter.</subsection></section><section number="70D-3-202"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Qualifications for licensure.</catchline><tab/>To qualify for a license under this chapter an individual shall comply with all of the following, the individual:<subsection number="70D-3-202(1)"> shall comply with 12 U.S.C. Sec. 5104 to register with and maintain a unique identifier through the nationwide database;</subsection><subsection number="70D-3-202(2)"> may not have had a loan originator license revoked in a governmental jurisdiction;</subsection><subsection number="70D-3-202(3)"> may not have been convicted of, or pled guilty or no contest to, a felony: <subsection number="70D-3-202(3)(a)"> during the seven years preceding the day on which the individual files an application; or</subsection><subsection number="70D-3-202(3)(b)"> at any time, if the felony involves an act of:<subsection number="70D-3-202(3)(b)(i)"> fraud;</subsection><subsection number="70D-3-202(3)(b)(ii)"> dishonesty;</subsection><subsection number="70D-3-202(3)(b)(iii)"> breach of trust; or</subsection><subsection number="70D-3-202(3)(b)(iv)"> money laundering;</subsection></subsection></subsection><subsection number="70D-3-202(4)"> shall demonstrate financial responsibility, character, and general fitness such as to: <subsection number="70D-3-202(4)(a)"> command the confidence of the community; and</subsection><subsection number="70D-3-202(4)(b)"> warrant a determination that the individual will operate as a loan originator honestly, fairly, and efficiently within the purposes of this chapter;</subsection></subsection><subsection number="70D-3-202(5)"> shall be covered by a surety bond posted in accordance with Section <xref depth="3" refid="C70D-3-S205_1800010118000101" refnumber="70D-3-205" start="0">70D-3-205</xref>;</subsection><subsection number="70D-3-202(6)"> shall complete the prelicensing education required by Section <xref depth="3" refid="C70D-3-S301_1800010118000101" refnumber="70D-3-301" start="0">70D-3-301</xref>; and</subsection><subsection number="70D-3-202(7)"> shall pass the written examination required by Section <xref depth="3" refid="C70D-3-S302_1800010118000101" refnumber="70D-3-302" start="0">70D-3-302</xref>.</subsection></section><section number="70D-3-203"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Initial licensure procedure.</catchline><subsection number="70D-3-203(1)"> To apply for licensure under this chapter an individual shall: <subsection number="70D-3-203(1)(a)"> file an application with the commissioner in a form prescribed by the commissioner in rule;</subsection><subsection number="70D-3-203(1)(b)"> demonstrate that the individual provided the information to the nationwide database required by 12 U.S.C. Sec. 5104;</subsection><subsection number="70D-3-203(1)(c)"> provide the commissioner the individual's unique identifier;</subsection><subsection number="70D-3-203(1)(d)"> consent to the commissioner receiving information obtained by the nationwide database under 12 U.S.C. Sec. 5104, including the results of a criminal history background check; and</subsection><subsection number="70D-3-203(1)(e)"> notwithstanding the requirements applicable to a regulatory fee under Section <xref depth="3" refid="C63J-1-S504_1800010118000101" refnumber="63J-1-504" start="0">63J-1-504</xref>, pay a fee of $200.</subsection></subsection><subsection number="70D-3-203(2)"> The commissioner shall grant an individual a license if the commissioner finds that the individual complies with: <subsection number="70D-3-203(2)(a)"> Subsection <xref depth="4" refid="C70D-3-S203_1800010118000101" refnumber="70D-3-203(1)" start="0">(1)</xref>; and</subsection><subsection number="70D-3-203(2)(b)"> the qualifications for a license under Section <xref depth="3" refid="C70D-3-S202_1800010118000101" refnumber="70D-3-202" start="0">70D-3-202</xref>.</subsection></subsection><subsection number="70D-3-203(3)"> Subject to this chapter, the commissioner may make rules in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, concerning: <subsection number="70D-3-203(3)(a)"> the form of an application under this chapter;</subsection><subsection number="70D-3-203(3)(b)"> the content of an application under this chapter; and</subsection><subsection number="70D-3-203(3)(c)"> the procedures for filing an application under this chapter.</subsection></subsection></section><section number="70D-3-204"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Renewal of license.</catchline><subsection number="70D-3-204(1)"> A license issued under this chapter expires on December 31 of each year.</subsection><subsection number="70D-3-204(2)"> To qualify to renew a license under this chapter an individual shall: <subsection number="70D-3-204(2)(a)"> meet the requirements of Section <xref depth="3" refid="C70D-3-S202_1800010118000101" refnumber="70D-3-202" start="0">70D-3-202</xref>; and</subsection><subsection number="70D-3-204(2)(b)"> complete the annual continuing education requirements of Section <xref depth="3" refid="C70D-3-S303_1800010118000101" refnumber="70D-3-303" start="0">70D-3-303</xref>.</subsection></subsection><subsection number="70D-3-204(3)"> To renew a license under this chapter an individual shall: <subsection number="70D-3-204(3)(a)"> file an application with the commissioner in a form prescribed by the commissioner in rule;</subsection><subsection number="70D-3-204(3)(b)"> demonstrate that the individual continues to meet the requirements related to the nationwide database under 12 U.S.C. Sec. 5104;</subsection><subsection number="70D-3-204(3)(c)"> demonstrate completion of the continuing education requirements; and</subsection><subsection number="70D-3-204(3)(d)"> notwithstanding the requirements applicable to a regulatory fee under Section <xref depth="3" refid="C63J-1-S504_1800010118000101" refnumber="63J-1-504" start="0">63J-1-504</xref>, pay a fee of $100.</subsection></subsection></section><section number="70D-3-205"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Surety bond requirements.</catchline><subsection number="70D-3-205(1)"><subsection number="70D-3-205(1)(a)"> To be licensed under this chapter an individual shall be covered by a surety bond that meets the minimum surety bonding requirements required by rule.</subsection><subsection number="70D-3-205(1)(b)"> If an action is brought against a bond under this chapter, the commissioner may require that another bond be posted.</subsection></subsection><subsection number="70D-3-205(2)"> The commissioner shall by rule made in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, establish minimum surety bonding requirements under this section, except that the requirements shall: <subsection number="70D-3-205(2)(a)"> reflect the dollar amount of residential mortgage loans originated by a loan originator; and</subsection><subsection number="70D-3-205(2)(b)"> ensure that if in accordance with this chapter a surety bond is posted by an employer or other entity on behalf of an individual, the bond covers the activities of the individual regulated by this chapter.</subsection></subsection></section><section number="70D-3-206"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Challenging information in the nationwide database.</catchline><tab/>The commissioner shall by rule made in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, provide a process under which an individual may challenge information contained in the nationwide database. </section></part><part number="70D-3-3"><catchline>Education Requirements</catchline><section number="70D-3-301"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Prelicensing education.</catchline><subsection number="70D-3-301(1)"> Before an individual may be licensed under this chapter, the individual shall complete the number of hours of prelicensing education required by rule made by the commissioner.</subsection><subsection number="70D-3-301(2)"><subsection number="70D-3-301(2)(a)"> The commissioner shall make the rules described in Subsection <xref depth="4" refid="C70D-3-S301_1800010118000101" refnumber="70D-3-301(1)" start="0">(1)</xref>:<subsection number="70D-3-301(2)(a)(i)"> in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>; and</subsection><subsection number="70D-3-301(2)(a)(ii)"> subject to the requirements of this Subsection <xref depth="4" refid="C70D-3-S301_1800010118000101" refnumber="70D-3-301(2)" start="0">(2)</xref>.</subsection></subsection><subsection number="70D-3-301(2)(b)"> The rules described in Subsection <xref depth="4" refid="C70D-3-S301_1800010118000101" refnumber="70D-3-301(1)" start="0">(1)</xref> shall require that an individual complete:<subsection number="70D-3-301(2)(b)(i)"> at least 20 hours of prelicensing education approved by the nationwide database; and</subsection><subsection number="70D-3-301(2)(b)(ii)"> as part of the 20 hours required by Subsection <xref depth="4" refid="C70D-3-S301_1800010118000101" refnumber="70D-3-301(2)(b)(i)" start="0">(2)(b)(i)</xref>: <subsection number="70D-3-301(2)(b)(ii)(A)"> 3 hours of federal law and regulations;</subsection><subsection number="70D-3-301(2)(b)(ii)(B)"> 3 hours of ethics that include instruction on:<subsection number="70D-3-301(2)(b)(ii)(B)(I)"> fraud;</subsection><subsection number="70D-3-301(2)(b)(ii)(B)(II)"> consumer protection; and</subsection><subsection number="70D-3-301(2)(b)(ii)(B)(III)"> fair lending issues; and</subsection></subsection><subsection number="70D-3-301(2)(b)(ii)(C)"> 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.</subsection></subsection></subsection></subsection></section><section number="70D-3-302"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Examination.</catchline><subsection number="70D-3-302(1)"> Before an individual may be licensed under this chapter, the individual shall pass a written examination that: <subsection number="70D-3-302(1)(a)"> meets the requirements of 12 U.S.C. Sec. 5104(d);</subsection><subsection number="70D-3-302(1)(b)"> is developed by the nationwide database; and</subsection><subsection number="70D-3-302(1)(c)"> is administered by an approved examination provider.</subsection></subsection><subsection number="70D-3-302(2)"> The commissioner shall make rules made in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, that: <subsection number="70D-3-302(2)(a)"> require that an individual comply at a minimum with the standards of 12 U.S.C. Sec. 5104(d); and</subsection><subsection number="70D-3-302(2)(b)"> address:<subsection number="70D-3-302(2)(b)(i)"> what constitutes passing a written examination;</subsection><subsection number="70D-3-302(2)(b)(ii)"> the ability of an individual to retake a written examination if the individual fails the written examination; and</subsection><subsection number="70D-3-302(2)(b)(iii)"> when an individual is required to retake a written examination if an individual fails to maintain a valid license under this chapter after taking the written examination.</subsection></subsection></subsection></section><section number="70D-3-303"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Continuing education.</catchline><subsection number="70D-3-303(1)"> A licensee shall annually complete at least the number of hours of continuing education required by rule made by the commissioner.</subsection><subsection number="70D-3-303(2)"><subsection number="70D-3-303(2)(a)"> The commissioner shall make the rules described in Subsection <xref depth="4" refid="C70D-3-S303_1800010118000101" refnumber="70D-3-303(1)" start="0">(1)</xref>:<subsection number="70D-3-303(2)(a)(i)"> in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>; and</subsection><subsection number="70D-3-303(2)(a)(ii)"> subject to the requirements of this Subsection <xref depth="4" refid="C70D-3-S303_1800010118000101" refnumber="70D-3-303(2)" start="0">(2)</xref>.</subsection></subsection><subsection number="70D-3-303(2)(b)"> The rules described in Subsection <xref depth="4" refid="C70D-3-S303_1800010118000101" refnumber="70D-3-303(1)" start="0">(1)</xref> shall require that an individual complete each calendar year:<subsection number="70D-3-303(2)(b)(i)"> eight hours of continuing education approved by the nationwide database;</subsection><subsection number="70D-3-303(2)(b)(ii)"> as part of the eight hours required by Subsection <xref depth="4" refid="C70D-3-S303_1800010118000101" refnumber="70D-3-303(2)(b)(i)" start="0">(2)(b)(i)</xref>: <subsection number="70D-3-303(2)(b)(ii)(A)"> three hours of federal law and regulations; and</subsection><subsection number="70D-3-303(2)(b)(ii)(B)"> two hours of ethics that include instruction on:<subsection number="70D-3-303(2)(b)(ii)(B)(I)"> fraud;</subsection><subsection number="70D-3-303(2)(b)(ii)(B)(II)"> consumer protection; and</subsection><subsection number="70D-3-303(2)(b)(ii)(B)(III)"> fair lending issues; and</subsection></subsection></subsection><subsection number="70D-3-303(2)(b)(iii)"> two hours of training related to lending standards for the nontraditional mortgage product marketplace.</subsection></subsection></subsection><subsection number="70D-3-303(3)"> The commissioner shall by rule made in accordance with <xref depth="1" refid="C63G-3_1800010118000101" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, provide for the calculation of continuing education hours, except that the rules shall be consistent with 12 U.S.C. Sec. 5105.</subsection></section></part><part number="70D-3-4"><catchline>Operational Requirements and Prohibitions</catchline><section number="70D-3-401"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Record requirements -- Reports of condition.</catchline><subsection number="70D-3-401(1)"> An individual required to be licensed under this chapter shall create a record required by rule made by the commissioner in accordance with <xref depth="1" refid="" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>.</subsection><subsection number="70D-3-401(2)"> An individual required to be licensed under this chapter shall maintain and produce for inspection a record required to be maintained by a rule made by the commissioner in accordance with <xref depth="1" refid="" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, for four years from the last to occur of the following: <subsection number="70D-3-401(2)(a)"> the final entry on a residential mortgage loan is made by that licensee;</subsection><subsection number="70D-3-401(2)(b)"> if the residential mortgage loan is serviced by the licensee:<subsection number="70D-3-401(2)(b)(i)"> the residential mortgage loan is paid in full; or</subsection><subsection number="70D-3-401(2)(b)(ii)"> the licensee ceases to service the residential mortgage loan; or</subsection></subsection><subsection number="70D-3-401(2)(c)"> if the residential mortgage loan is not serviced by the licensee, the residential mortgage loan is closed.</subsection></subsection><subsection number="70D-3-401(3)"> An individual required to be licensed under this chapter shall maintain and produce for inspection by the commissioner a 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 individual submits the report of condition to the nationwide database.</subsection></section><section number="70D-3-402"><histories><history>Amended by Chapter <modchap sess="2015GS">290</modchap>, 2015 General Session</history><modyear>2015</modyear></histories><catchline>Prohibited acts.</catchline><subsection number="70D-3-402(1)"> An individual transacting the business of a loan originator in this state may not: <subsection number="70D-3-402(1)(a)"> violate or not comply with:<subsection number="70D-3-402(1)(a)(i)"> this chapter;</subsection><subsection number="70D-3-402(1)(a)(ii)"> an order of the commissioner under this chapter;</subsection><subsection number="70D-3-402(1)(a)(iii)"> a rule made by the commissioner under this chapter;</subsection><subsection number="70D-3-402(1)(a)(iv)"><xref depth="0" refnumber="70C" start="0">Title 70C, Utah Consumer Credit Code</xref>, if subject to that title; or</subsection><subsection number="70D-3-402(1)(a)(v)"><xref depth="1" refnumber="70D-2" start="1">Chapter 2, Mortgage Lending and Servicing Act</xref>, if subject to that chapter;</subsection></subsection><subsection number="70D-3-402(1)(b)"> engage in an act that is performed to:<subsection number="70D-3-402(1)(b)(i)"> evade this chapter; or</subsection><subsection number="70D-3-402(1)(b)(ii)"> assist another person to evade this chapter;</subsection></subsection><subsection number="70D-3-402(1)(c)"> do any of the following to induce a lender to extend credit as part of a residential mortgage loan transaction:<subsection number="70D-3-402(1)(c)(i)"> make a false statement or representation;</subsection><subsection number="70D-3-402(1)(c)(ii)"> cause a false document to be generated; or</subsection><subsection number="70D-3-402(1)(c)(iii)"> knowingly permit false information to be submitted by a person in a transaction;</subsection></subsection><subsection number="70D-3-402(1)(d)"> fail to respond within the required time period to:<subsection number="70D-3-402(1)(d)(i)"> a notice or complaint of the commissioner; or</subsection><subsection number="70D-3-402(1)(d)(ii)"> a request for information from the commissioner;</subsection></subsection><subsection number="70D-3-402(1)(e)"> make a false representation to the commissioner, including in a licensure application;</subsection><subsection number="70D-3-402(1)(f)"> engage in the business of a loan originator with respect to a residential mortgage loan transaction if the individual also acts in any of the following capacities with respect to the same residential mortgage loan transaction:<subsection number="70D-3-402(1)(f)(i)"> appraiser;</subsection><subsection number="70D-3-402(1)(f)(ii)"> escrow agent;</subsection><subsection number="70D-3-402(1)(f)(iii)"> real estate agent;</subsection><subsection number="70D-3-402(1)(f)(iv)"> general contractor; or</subsection><subsection number="70D-3-402(1)(f)(v)"> title insurance agent;</subsection></subsection><subsection number="70D-3-402(1)(g)"> engage in an act or omission in transacting the business of a loan originator that constitutes dishonesty, fraud, or misrepresentation;</subsection><subsection number="70D-3-402(1)(h)"> engage in false or misleading advertising;</subsection><subsection number="70D-3-402(1)(i)"><subsection number="70D-3-402(1)(i)(i)"> fail to account for money received in connection with a residential mortgage loan;</subsection><subsection number="70D-3-402(1)(i)(ii)"> use money for a different purpose than the purpose for which the money is received; or</subsection><subsection number="70D-3-402(1)(i)(iii)"> subject to Subsection <xref depth="4" refnumber="70D-3-402(3)" start="0">(3)</xref>, retain money paid for services if the services are not performed;</subsection></subsection><subsection number="70D-3-402(1)(j)"> fail, within 90 calendar days of a request from a borrower who has paid for an appraisal, to give a copy of an appraisal ordered and used for a residential mortgage loan to the borrower;</subsection><subsection number="70D-3-402(1)(k)"> 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;</subsection><subsection number="70D-3-402(1)(l)"> pay or offer to pay an individual who does not hold a license under this chapter for services that require the individual to hold a license under this chapter; or</subsection><subsection number="70D-3-402(1)(m)"> violate or fail to comply with a provision of <xref depth="1" refnumber="57-28" start="0">Title 57, Chapter 28, Utah Reverse Mortgage Act</xref>.</subsection></subsection><subsection number="70D-3-402(2)"><subsection number="70D-3-402(2)(a)"> An individual engaging solely in loan processor or underwriter activities, may not represent to the public that the individual can or will perform any act of a loan originator.</subsection><subsection number="70D-3-402(2)(b)"> A representation prohibited under this Subsection <xref depth="4" refnumber="70D-3-402(2)" start="0">(2)</xref> includes an advertisement or other means of communicating or providing information including the use of:<subsection number="70D-3-402(2)(b)(i)"> a business card;</subsection><subsection number="70D-3-402(2)(b)(ii)"> stationery;</subsection><subsection number="70D-3-402(2)(b)(iii)"> a brochure;</subsection><subsection number="70D-3-402(2)(b)(iv)"> a sign;</subsection><subsection number="70D-3-402(2)(b)(v)"> a rate list; or</subsection><subsection number="70D-3-402(2)(b)(vi)"> another promotional item.</subsection></subsection></subsection><subsection number="70D-3-402(3)"> Notwithstanding Subsection <xref depth="4" refnumber="70D-3-402(1)(i)(iii)" start="0">(1)(i)(iii)</xref>, if a licensee complies with Section <xref depth="3" refnumber="70D-2-305" start="0">70D-2-305</xref>, the licensee may charge a reasonable cancellation fee for services completed to originate a residential mortgage loan if the residential mortgage loan is not closed.</subsection></section></part><part number="70D-3-5"><catchline>Enforcement</catchline><section number="70D-3-501"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Disciplinary action.</catchline><subsection number="70D-3-501(1)"> The commissioner may through an adjudicative proceeding subject to <xref depth="1" refid="C63G-4_1800010118000101" refnumber="63G-4" start="0">Title 63G, Chapter 4, Administrative Procedures Act</xref>, impose a sanction described in Subsection <xref depth="4" refid="C70D-3-S501_1800010118000101" refnumber="70D-3-501(2)" start="0">(2)</xref> against an individual if the individual: <subsection number="70D-3-501(1)(a)"> is licensed or required to be licensed under this chapter; and</subsection><subsection number="70D-3-501(1)(b)"> violates this chapter.</subsection></subsection><subsection number="70D-3-501(2)"> The commissioner may against an individual described in Subsection <xref depth="4" refid="C70D-3-S501_1800010118000101" refnumber="70D-3-501(1)" start="0">(1)</xref> who violates this chapter: <subsection number="70D-3-501(2)(a)"> impose an educational requirement;</subsection><subsection number="70D-3-501(2)(b)"> impose a civil penalty against the individual in an amount not to exceed the greater of:<subsection number="70D-3-501(2)(b)(i)"> $2,500 for each violation; or</subsection><subsection number="70D-3-501(2)(b)(ii)"> the amount equal to any gain or economic benefit derived from each violation;</subsection></subsection><subsection number="70D-3-501(2)(c)"> deny an application for an initial license;</subsection><subsection number="70D-3-501(2)(d)"> do any of the following to a license under this chapter:<subsection number="70D-3-501(2)(d)(i)"> suspend;</subsection><subsection number="70D-3-501(2)(d)(ii)"> revoke;</subsection><subsection number="70D-3-501(2)(d)(iii)"> place on probation;</subsection><subsection number="70D-3-501(2)(d)(iv)"> deny renewal;</subsection><subsection number="70D-3-501(2)(d)(v)"> deny reinstatement;</subsection><subsection number="70D-3-501(2)(d)(vi)"> in the case of a denial of a license, set a waiting period for an individual to apply for a license under this chapter; or</subsection><subsection number="70D-3-501(2)(d)(vii)"> issue a cease and desist order; or</subsection></subsection><subsection number="70D-3-501(2)(e)"> impose a combination of sanctions described in this Subsection <xref depth="4" refid="C70D-3-S501_1800010118000101" refnumber="70D-3-501(2)" start="0">(2)</xref>.</subsection></subsection><subsection number="70D-3-501(3)"><subsection number="70D-3-501(3)(a)"> If the commissioner determines that a practice that the commissioner alleges is unlawful should be enjoined during the pendency of a proceeding incident to an allegation, the commissioner may issue a temporary order in accordance with Section <xref depth="3" refid="C63G-4-S502_1800010118000101" refnumber="63G-4-502" start="0">63G-4-502</xref>:<subsection number="70D-3-501(3)(a)(i)"> at the commencement of the proceedings; or</subsection><subsection number="70D-3-501(3)(a)(ii)"> at any time after the proceeding commences.</subsection></subsection><subsection number="70D-3-501(3)(b)"> For purposes of Section <xref depth="3" refid="C63G-4-S502_1800010118000101" refnumber="63G-4-502" start="0">63G-4-502</xref>, an immediate and significant danger to the public health, safety, or welfare exists if the commissioner finds from specific facts supported by sworn statement or the records of a person subject to the order that loan applicants or mortgagors are otherwise likely to suffer immediate and irreparable injury, loss, or damage before a proceeding incident to a final order can be completed.</subsection></subsection></section><section number="70D-3-502"><histories><history>Enacted by Chapter <modchap sess="2009GS">72</modchap>, 2009 General Session</history><modyear>2009</modyear></histories><catchline>Investigations.</catchline><subsection number="70D-3-502(1)"> The commissioner may investigate the actions of: <subsection number="70D-3-502(1)(a)"> a licensee; or</subsection><subsection number="70D-3-502(1)(b)"> an individual required to be licensed under this chapter.</subsection></subsection><subsection number="70D-3-502(2)"> In conducting an investigation or adjudicative proceeding, the commissioner may: <subsection number="70D-3-502(2)(a)"> administer an oath or affirmation under penalty of perjury;</subsection><subsection number="70D-3-502(2)(b)"> subpoena a witness;</subsection><subsection number="70D-3-502(2)(c)"> compel the attendance of a witness;</subsection><subsection number="70D-3-502(2)(d)"> take evidence;</subsection><subsection number="70D-3-502(2)(e)"> require the production of a record or information relevant to an investigation from any person including:<subsection number="70D-3-502(2)(e)(i)"> the existence, description, nature, custody, condition, and location of a record or other tangible thing of any kind or nature; and</subsection><subsection number="70D-3-502(2)(e)(ii)"> the identity and location of a person having knowledge of a relevant fact or any other matter reasonably calculated to lead to the discovery of admissible evidence; and</subsection></subsection><subsection number="70D-3-502(2)(f)"> serve a subpoena.</subsection></subsection><subsection number="70D-3-502(3)"> A failure to respond to a request by the commissioner in an investigation authorized under this chapter is considered as a separate violation of this chapter, including: <subsection number="70D-3-502(3)(a)"> failing to respond to a subpoena;</subsection><subsection number="70D-3-502(3)(b)"> withholding evidence; or</subsection><subsection number="70D-3-502(3)(c)"> failing to produce a record or other information.</subsection></subsection><subsection number="70D-3-502(4)"> In conducting an investigation, the commissioner may inspect and copy a record related to the business of a loan originator, regardless of whether the record is maintained at a business location in Utah.</subsection><subsection number="70D-3-502(5)"> Regardless of whether the commissioner takes action pursuant to an investigation under this chapter, an individual investigated under this section shall pay to the commissioner the amounts that would be assessed to a financial institution for an examination under Subsection <xref depth="4" refid="C7-1-S401_1800010118000101" refnumber="7-1-401(7)" start="0">7-1-401(7)</xref> including: <subsection number="70D-3-502(5)(a)"> a per diem assessment at the rate calculated under Subsection <xref depth="4" refid="C7-1-S401_1800010118000101" refnumber="7-1-401(7)" start="0">7-1-401(7)</xref>; and</subsection><subsection number="70D-3-502(5)(b)"> if the investigation requires one or more representatives of the commissioner to travel out of state, the reasonable travel, lodging, and other expenses incurred by each representative while conducting the investigation.</subsection></subsection></section></part></chapter><chapter number="70D-4"><catchline>Uniform Mortgage Modification Act</catchline><section number="70D-4-101"><histories><history>Enacted by Chapter <modchap sess="2025GS">482</modchap>, 2025 General Session</history><modyear>2025</modyear></histories><catchline>Definitions.</catchline><subsection number="70D-4-101(1)">"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.</subsection><subsection number="70D-4-101(2)">"Financial covenant" means an undertaking to demonstrate an obligor's creditworthiness or the adequacy of security provided by an obligor.</subsection><subsection number="70D-4-101(3)">"Modification" includes change, amendment, revision, correction, addition, supplementation, elimination, waiver, and restatement.</subsection><subsection number="70D-4-101(4)"><subsection number="70D-4-101(4)(a)">"Mortgage" means an agreement that creates a consensual interest in real property to secure payment or performance of an obligation regardless of how the agreement is denominated, including a mortgage, deed of trust, trust deed, security deed, indenture, or deed to secure debt, and regardless of whether the agreement also creates a security interest in personal property.</subsection><subsection number="70D-4-101(4)(b)">"Mortgage" does not include an agreement that creates a consensual interest to secure a liability owed by a unit owner to a condominium association, owners association, or cooperative housing association for association dues, fees, or assessments.</subsection></subsection><subsection number="70D-4-101(5)">"Mortgage modification" means modification of:<subsection number="70D-4-101(5)(a)">a mortgage;</subsection><subsection number="70D-4-101(5)(b)">an agreement that creates an obligation, including a promissory note, loan agreement, or credit agreement; or</subsection><subsection number="70D-4-101(5)(c)">an agreement that creates other security or credit enhancement for an obligation, including an assignment of leases or rents or a guaranty.</subsection></subsection><subsection number="70D-4-101(6)">"Obligation" means a debt or other duty or liability secured by a mortgage.</subsection><subsection number="70D-4-101(7)">"Obligor" means a person that:<subsection number="70D-4-101(7)(a)">owes payment or performance of an obligation;</subsection><subsection number="70D-4-101(7)(b)">signs a mortgage; or</subsection><subsection number="70D-4-101(7)(c)">is otherwise accountable, or whose property serves as collateral, for payment or performance of an obligation.</subsection></subsection><subsection number="70D-4-101(8)">"Person" means an individual, estate, business or nonprofit entity, government or governmental subdivision, agency, instrumentality, or other legal entity.</subsection><subsection number="70D-4-101(9)">"Recognized index" means an index to which changes in the interest rate may be linked that is readily available to, and verifiable by, the obligor and is beyond the control of the person to whom the obligation is owed.</subsection><subsection number="70D-4-101(10)">"Record" means information:<subsection number="70D-4-101(10)(a)">inscribed on a tangible medium; or</subsection><subsection number="70D-4-101(10)(b)">stored in an electronic or other medium and retrievable in perceivable form.</subsection></subsection><subsection number="70D-4-101(11)">"Sign" means, with present intent to authenticate or adopt a record:<subsection number="70D-4-101(11)(a)">to execute or adopt a tangible symbol; or</subsection><subsection number="70D-4-101(11)(b)">to attach to or logically associate with the record an electronic symbol, sound, or process.</subsection></subsection></section><section number="70D-4-201"><histories><history>Enacted by Chapter <modchap sess="2025GS">482</modchap>, 2025 General Session</history><modyear>2025</modyear></histories><catchline>Scope.</catchline><subsection number="70D-4-201(1)">Except as provided in Subsection (3), this chapter applies to a mortgage modification.</subsection><subsection number="70D-4-201(2)">This chapter does not affect the following law of this state:<subsection number="70D-4-201(2)(a)">law governing the required content of a mortgage;</subsection><subsection number="70D-4-201(2)(b)">a statute of limitations or other law governing the expiration or termination of a right to enforce an obligation or a mortgage;</subsection><subsection number="70D-4-201(2)(c)">a recording statute;</subsection><subsection number="70D-4-201(2)(d)">a statute governing the priority of a tax lien or other governmental lien;</subsection><subsection number="70D-4-201(2)(e)">a statute of frauds; or</subsection><subsection number="70D-4-201(2)(f)">except as provided in Subsection <xref depth="4" refnumber="70D-4-301(2)(h)">70D-4-301(2)(h)</xref>, law governing the priority of a future advance.</subsection></subsection><subsection number="70D-4-201(3)">This chapter does not apply to:<subsection number="70D-4-201(3)(a)">a release of, or addition to, property encumbered by a mortgage;</subsection><subsection number="70D-4-201(3)(b)">a release of, addition of, or other change in an obligor; or</subsection><subsection number="70D-4-201(3)(c)">an assignment or other transfer of a mortgage or an obligation.</subsection></subsection></section><section number="70D-4-301"><histories><history>Enacted by Chapter <modchap sess="2025GS">482</modchap>, 2025 General Session</history><modyear>2025</modyear></histories><catchline>Effect of mortgage modification.</catchline><subsection number="70D-4-301(1)">For a mortgage modification described in Subsection (2):<subsection number="70D-4-301(1)(a)">the mortgage continues to secure the obligation as modified;</subsection><subsection number="70D-4-301(1)(b)">the priority of the mortgage is not affected by the modification;</subsection><subsection number="70D-4-301(1)(c)">the mortgage retains the mortgage's priority regardless of whether a record of the mortgage modification is recorded; and</subsection><subsection number="70D-4-301(1)(d)">the modification is not a novation.</subsection></subsection><subsection number="70D-4-301(2)">Subsection (1) applies to one or more of the following:<subsection number="70D-4-301(2)(a)">an extension of the maturity date of an obligation;</subsection><subsection number="70D-4-301(2)(b)">a decrease in the interest rate of an obligation;</subsection><subsection number="70D-4-301(2)(c)">if there is any change as specified in Subsection <xref tempid="582" depth="4" refnumber="70D-4-301(2)(c)(i)">(2)(c)(i)</xref> through (iv) that does not result in an increase in the interest rate as calculated on the date the modification becomes effective:<subsection number="70D-4-301(2)(c)(i)">a change to a different recognized index if the previous index is no longer available;</subsection><subsection number="70D-4-301(2)(c)(ii)">a change in the differential between the index and the interest rate;</subsection><subsection number="70D-4-301(2)(c)(iii)">a change from a floating or adjustable rate to a fixed rate; and </subsection><subsection number="70D-4-301(2)(c)(iv)">a change from a fixed rate to a floating or adjustable rate based on a recognized index;</subsection></subsection><subsection number="70D-4-301(2)(d)">a capitalization of unpaid interest or other unpaid obligation;</subsection><subsection number="70D-4-301(2)(e)">a forgiveness, forbearance, or other reduction of principal, accrued interest, or other monetary obligation;</subsection><subsection number="70D-4-301(2)(f)">a modification of a requirement for maintaining an escrow or reserve account for payment of an obligation, including taxes, insurance premiums, or another obligation;</subsection><subsection number="70D-4-301(2)(g)">a modification of a requirement for acquiring or maintaining insurance;</subsection><subsection number="70D-4-301(2)(h)">a modification of an existing condition to advance funds;</subsection><subsection number="70D-4-301(2)(i)">a modification of a financial covenant; and</subsection><subsection number="70D-4-301(2)(j)">a modification of the payment amount or schedule resulting from another modification described in this Subsection <xref refnumber="70D-4-301(2)" depth="4">(2)</xref>.</subsection></subsection><subsection number="70D-4-301(3)">The effect of a mortgage modification not described in Subsection (2) is governed by other law.</subsection></section><section number="70D-4-401"><histories><history>Enacted by Chapter <modchap sess="2025GS">482</modchap>, 2025 General Session</history><modyear>2025</modyear></histories><catchline>Uniformity of application and construction.</catchline>In applying and construing this uniform act, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.</section><section number="70D-4-501"><histories><history>Enacted by Chapter <modchap sess="2025GS">482</modchap>, 2025 General Session</history><modyear>2025</modyear></histories><catchline>Relation to Electronic Signatures in Global and National Commerce Act.</catchline>This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or supersede 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the notices described in 15 U.S.C. Sec. 7003(b).</section><section number="70D-4-601"><histories><history>Enacted by Chapter <modchap sess="2025GS">482</modchap>, 2025 General Session</history><modyear>2025</modyear></histories><catchline>Transitional Provision.</catchline>This chapter applies to a mortgage modification made on or after May 7, 2025, regardless of when the mortgage or the obligation was created.</section></chapter>