Utah Code 70D-3-402. Prohibited acts
Current as of: 2024 | Check for updates
|
Other versions
(1) An individual transacting the business of a loan originator in this state may not:
Terms Used In Utah Code 70D-3-402
- Applicant: means an individual applying for a license under this chapter. See Utah Code 70D-3-102
- Appraisal: A determination of property value.
- Commissioner: means the commissioner of the department. See Utah Code 70D-1-102
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Fraud: Intentional deception resulting in injury to another.
- Licensee: means an individual licensed under this chapter. See Utah Code 70D-3-102
- loan originator: means an individual who for compensation or in the expectation of compensation:(12)(a)(i) takes a residential mortgage loan application; or(12)(a)(ii) offers or negotiates a term of a residential mortgage loan. See Utah Code 70D-3-102
- Loan processor or underwriter: means an individual who as an employee performs clerical or support duties:(13)(a) at the direction of and subject to the supervision and instruction of:(13)(a)(i) a licensee; or(13)(a)(ii) a registered loan originator; and(13)(b) as an employee of:(13)(b)(i) the licensee; or(13)(b)(ii) a registered loan originator. See Utah Code 70D-3-102
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage: means a mortgage or deed of trust affecting real property located in this state. See Utah Code 70D-1-102
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan: means a loan:(6)(a)(i) secured by a mortgage; and(6)(a)(ii) made for personal, family, or household purposes. See Utah Code 70D-1-102
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- residential mortgage loan: means :(19)(a)(i) a mortgage loan; or(19)(a)(ii) a loan that is:(19)(a)(ii)(A) secured by a mortgage; and(19)(a)(ii)(B) subject to Title 70C, Utah Consumer Credit Code. See Utah Code 70D-3-102
- State: means :(10)(a) a state, territory, or possession of the United States;(10)(b) the District of Columbia; or(10)(c) the Commonwealth of Puerto Rico. See Utah Code 70D-1-102
(1)(a) violate or not comply with:
(1)(a)(i) this chapter;
(1)(a)(ii) an order of the commissioner under this chapter;
(1)(a)(iii) a rule made by the commissioner under this chapter;
(1)(a)(iv) Title 70C, Utah Consumer Credit Code, if subject to that title; or
(1)(a)(v) Chapter 2, Mortgage Lending and Servicing Act, if subject to that chapter;
(1)(b) engage in an act that is performed to:
(1)(b)(i) evade this chapter; or
(1)(b)(ii) assist another person to evade this chapter;
(1)(c) do any of the following to induce a lender to extend credit as part of a residential mortgage loan transaction:
(1)(c)(i) make a false statement or representation;
(1)(c)(ii) cause a false document to be generated; or
(1)(c)(iii) knowingly permit false information to be submitted by a person in a transaction;
(1)(d) fail to respond within the required time period to:
(1)(d)(i) a notice or complaint of the commissioner; or
(1)(d)(ii) a request for information from the commissioner;
(1)(e) make a false representation to the commissioner, including in a licensure application;
(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:
(1)(f)(i) appraiser;
(1)(f)(ii) escrow agent;
(1)(f)(iii) real estate agent;
(1)(f)(iv) general contractor; or
(1)(f)(v) title insurance agent;
(1)(g) engage in an act or omission in transacting the business of a loan originator that constitutes dishonesty, fraud, or misrepresentation;
(1)(h) engage in false or misleading advertising;
(1)(i)
(1)(i)(i) fail to account for money received in connection with a residential mortgage loan;
(1)(i)(ii) use money for a different purpose than the purpose for which the money is received; or
(1)(i)(iii) subject to Subsection (3), retain money paid for services if the services are not performed;
(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;
(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;
(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
(1)(m) violate or fail to comply with a provision of Title 57, Chapter 28, Utah Reverse Mortgage Act.
(2)
(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.
(2)(b) A representation prohibited under this Subsection (2) includes an advertisement or other means of communicating or providing information including the use of:
(2)(b)(i) a business card;
(2)(b)(ii) stationery;
(2)(b)(iii) a brochure;
(2)(b)(iv) a sign;
(2)(b)(v) a rate list; or
(2)(b)(vi) another promotional item.
(3) Notwithstanding Subsection (1)(i)(iii), if a licensee complies with Section 70D-2-305, 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.