Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 99 (2025GS)

Sponsor

Rep. Bennion, Gay Lynn

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• provides conditions where the use of information derived from a consumer report to solicit a consumer is prohibited; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

5
61-2-203
61-2c-301
61-2-203
61-2c-301
6
0
Residential Mortgage Loan Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Gay Lynn Bennion
Senate Sponsor: Wayne A. Harper
LONG TITLE
General Description:
This bill modifies the Utah Residential Mortgage Practices and Licensing Act. 
Highlighted Provisions:
This bill:
defines terms;
provides the Division of Real Estate authority to issue a citation to a person transacting 
residential mortgage loans that violates trigger lead standards; 
provides conditions where the use of information derived from a consumer report to 
solicit a consumer is prohibited; and
makes technical and conforming changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
61-2-203
, as last amended by Laws of Utah 2023, Chapter 401
61-2c-301
, as last amended by Laws of Utah 2024, Chapter 218
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
61-2-203
 is amended to read:
61-2-203
. Adjudicative proceedings -- Citation authority.
(1)
The division shall comply with 
Title 63G, Chapter 4, Administrative Procedures Act
, in 
an adjudicative proceeding under a chapter the division administers.
(2)
The division may initiate an adjudicative proceeding through:
(a)
a notice of agency action; or
(b)
a notice of formal or informal proceeding.
(3)
The provisions of 
Title 63G, Chapter 4, Administrative Procedures Act
, do not apply to 
the issuance of a citation under Subsection 
(4)
, unless a licensee or another person 
authorized by law to contest the validity or correctness of a citation commences an 
adjudicative proceeding contesting the citation.
(4)
In addition to any other statutory penalty for a violation related to an occupation or 
profession regulated under this title, the division may issue a citation to a person who, 
upon inspection or investigation, the division concludes to have violated:
(a)
Subsection 
61-2c-201(1)
, which requires licensure
;
(b)
Subsection 
61-2c-201(4)
, which requires licensure
;
(c)
Subsection 
61-2c-205(3)
, which requires notification of a change in specified 
information regarding a licensee
;
(d)
Subsection 
61-2c-205(4)
, which requires notification of a specified legal action
;
(e)
Subsection 
61-2c-301(1)(g)
, which prohibits failing to respond to the division within 
the required time period
61-2c-301(2)(g)
;
(f)
Subsection 
61-2c-301(1)(h)
, which prohibits making a false representation to the 
division
61-2c-301(2)(h)
;
(g)
Subsection 
61-2c-301(1)(i)
, which prohibits taking a dual role in a transaction
61-2c-301(2)(i)
;
(h)
Subsection 
61-2c-301(1)(l)
, which prohibits engaging in false or misleading 
advertising
61-2c-301(2)(l)
;
(i)
Subsection 
61-2c-301(1)(t)
, which prohibits advertising the ability to do licensed 
work if unlicensed
61-2c-301(2)(t)
;
(j)
Subsection 
61-2c-301(2)(y)
;
(j)
(k)
Subsection 
61-2c-302(5)
, which requires a mortgage entity to create and file a 
quarterly report of condition
;
(k)
(l)
Subsection 
61-2e-201(1)
, which requires registration
;
(l)
(m)
Subsection 
61-2e-203(4)
, which requires a notification of a change in ownership
;
(m)
(n)
Subsection 
61-2e-307(1)(c)
, which prohibits use of an unregistered fictitious 
name
;
(n)
(o)
Subsection 
61-2e-401(1)(c)
, which prohibits failure to respond to a division 
request
;
(o)
(p)
Subsection 
61-2f-201(1)
, which requires licensure
;
(p)
(q)
Subsection 
61-2f-206(1)
, which requires registration
;
(q)
(r)
Subsection 
61-2f-301(1)
, which requires notification of a specified legal action
;
(r)
(s)
Subsection 
61-2f-401(1)(a)
, which prohibits making a substantial 
misrepresentation
;
(s)
(t)
Subsection 
61-2f-401(3)
, which prohibits undertaking real estate while not 
affiliated with a principal broker
;
(t)
(u)
Subsection 
61-2f-401(9)
, which prohibits failing to keep specified records and 
prohibits failing to make the specified records available for division inspection
;
(u)
(v)
Subsection 
61-2f-401(12)
, which prohibits false, misleading, or deceptive 
advertising
;
(v)
(w)
Subsection 
61-2f-401(18)
, which prohibits failing to respond to a division 
request
;
(w)
(x)
Subsection 
61-2g-301(1)
, which requires licensure
;
(x)
(y)
Subsection 
61-2g-405(3)
, which requires making records required to be 
maintained available to the division
;
(y)
(z)
Subsection 
61-2g-501(2)(c)
, which requires a person to respond to a division 
request in an investigation within 10 days after the day on which the request is served
;
(z)
(aa)
Subsection 
61-2g-502(2)(f)
, which prohibits using a nonregistered fictitious 
name
;
(aa)
(bb)
a rule made 
pursuant to any Subsection
in accordance with any subsection
listed in this Subsection 
(4)
;
(bb)
(cc)
an order of the division; or
(cc)
(dd)
an order of the commission or board that oversees the person's profession.
(5)
(a)
In accordance with Subsection 
(10)
, the division may assess a fine against a 
person for a violation of a provision listed in Subsection 
(4)
, as evidenced by:
(i)
an uncontested citation;
(ii)
a stipulated settlement; or
(iii)
a finding of a violation in an adjudicative proceeding.
(b)
The division may, in addition to or in lieu of a fine under Subsection 
(5)(a)
, order the 
person to cease and desist from an activity that violates a provision listed in 
Subsection 
(4)
.
(6)
Except as provided in Subsection 
(8)(d)
, the division may not use a citation to effect a 
license:
(a)
denial;
(b)
probation;
(c)
suspension; or
(d)
revocation.
(7)
(a)
A citation issued by the division shall:
(i)
be in writing;
(ii)
describe with particularity the nature of the violation, including a reference to the 
provision of the statute, rule, or order alleged to have been violated;
(iii)
clearly state that the recipient must notify the division in writing within 20 
calendar days after the day on which the citation is served if the recipient wishes 
to contest the citation at a hearing conducted under 
Title 63G, Chapter 4, 
Administrative Procedures Act
; and
(iv)
clearly explain the consequences of failure to timely contest the citation or to 
make payment of a fine assessed by the citation within the time period specified in 
the citation.
(b)
The division may issue a notice in lieu of a citation.
(8)
(a)
A citation becomes final:
(i)
if within 20 calendar days after the day on which the citation is served, the person 
to whom the citation was issued fails to request a hearing to contest the citation; or
(ii)
if the director or the director's designee conducts a hearing pursuant to a timely 
request for a hearing and issues an order finding that a violation has occurred.
(b)
The division may extend, for cause, the 20-day period to contest a citation.
(c)
A citation that becomes the final order of the division due to a person's failure to 
timely request a hearing is not subject to further agency review.
(d)
(i)
The division may refuse to issue, refuse to renew, suspend, revoke, or place on 
probation the license of a licensee who fails to comply with a citation after the 
citation becomes final.
(ii)
The failure of a license applicant to comply with a citation after the citation 
becomes final is a ground for denial of the license application.
(9)
(a)
The division may not issue a citation under this section after the expiration of one 
year after the day on which the violation occurs.
(b)
The division may issue a notice to address a violation that is outside of the one-year 
citation period.
(10)
The director or the director's designee shall assess a fine with a citation in an amount 
that is no more than:
(a)
for a first offense, $1,000;
(b)
for a second offense, $2,000; and
(c)
for each offense subsequent to a second offense, $2,000 for each day of continued 
offense.
(11)
(a)
An action for a first or second offense for which the division has not issued a 
final order does not preclude the division from initiating a subsequent action for a 
second or subsequent offense while the preceding action is pending.
(b)
The final order on a subsequent action is considered a second or subsequent offense, 
respectively, provided the preceding action resulted in a first or second offense, 
respectively.
(12)
(a)
If a person does not pay a penalty, the director may collect the unpaid penalty by:
(i)
referring the matter to a collection agency; or
(ii)
bringing an action in a court with jurisdiction under 
Title 78A, Judiciary and 
Judicial Administration
.
(b)
A county attorney or the attorney general of the state shall provide legal services to 
the director in an action to collect the penalty.
(c)
A court may award reasonable attorney fees and costs to the division in an action the 
division brings to enforce the provisions of this section.
Section 2, Section 
61-2c-301
 is amended to read:
61-2c-301
. Prohibited conduct -- Violations of the chapter.
(1)
As used in this section:
(a)
"Prescreened trigger lead information" means information derived from a consumer 
report that is given to a third party that is not affiliated with the consumer.
(b)
(i)
"Solicitation" means contacting a consumer to market mortgage loan services.
(ii)
"Solicitation" includes:
(A)
accepting or offering to accept a mortgage loan application;
(B)
helping or offering to help process a mortgage loan application;
(C)
soliciting or offering to solicit a mortgage loan for a third party; or
(D)
negotiating or offering to negotiate the terms of a mortgage loan with a lender 
for a third party.
(2)
A person, when transacting the business of residential mortgage loans in this state, may 
not:
(a)
violate Section 8 of RESPA;
(b)
charge a fee in connection with a residential mortgage loan transaction:
(i)
that is excessive; or
(ii)
without providing to the loan applicant a written statement signed by the loan 
applicant:
(A)
stating whether 
or not 
the fee or deposit is refundable; and
(B)
describing the conditions, if any, under which all or a portion of the fee or 
deposit will be refunded to the loan applicant;
(c)
act incompetently in the transaction of the business of residential mortgage loans 
such that the person fails
resulting in the person failing
 to:
(i)
safeguard the interests of the public; or
(ii)
conform to acceptable standards of the residential mortgage loan industry;
(d)
do any of the following as part of a residential mortgage loan transaction, regardless 
of whether the residential mortgage loan closes:
(i)
make a false statement or representation;
(ii)
cause false documents to be generated; or
(iii)
knowingly permit false information to be submitted by any party;
(e)
give or receive compensation or anything of value, or withhold or threaten to 
withhold payment of an appraiser fee, to influence the independent judgment of an 
appraiser in reaching a value conclusion in a residential mortgage loan transaction, 
except that it is not a violation of this section for a licensee to withhold payment 
because of a bona fide dispute regarding a failure of the appraiser to comply with the 
licensing law or the Uniform Standards of Professional Appraisal Practice;
(f)
violate or not comply with:
(i)
this chapter;
(ii)
an order of the commission or division; or
(iii)
a rule made by the division;
(g)
fail to respond within the required time period to:
(i)
a notice or complaint of the division; or
(ii)
a request for information from the division;
(h)
make false representations to the division, including in a licensure statement;
(i)
engage in the business of residential mortgage loans with respect to the transaction if 
the person also acts in any of the following capacities with respect to the same 
residential mortgage loan transaction:
(i)
appraiser;
(ii)
escrow agent;
(iii)
real estate agent;
(iv)
general contractor; or
(v)
title insurance producer;
(j)
engage in unprofessional conduct as defined by rule;
(k)
engage in an act or omission in transacting the business of residential mortgage loans 
that constitutes dishonesty, fraud, or misrepresentation;
(l)
engage in false or misleading advertising;
(m)
(i)
fail to account for money received in connection with a residential mortgage 
loan;
(ii)
use money for a different purpose from the purpose for which the money is 
received; or
(iii)
except as provided in Subsection 
(4),
(5),
 retain money paid for services if the 
services are not performed;
(n)
fail to provide a prospective borrower a copy of each appraisal and any other written 
valuation developed in connection with an application for credit that is to be secured 
by a first lien on a dwelling in accordance with Subsection 
(5);
(6);
(o)
engage in an act that is performed to:
(i)
evade this chapter; or
(ii)
assist another person to evade this chapter;
(p)
recommend or encourage default, delinquency, or continuation of an existing default 
or delinquency, by a mortgage applicant on an existing indebtedness before the 
closing of a residential mortgage loan that will refinance all or part of the 
indebtedness;
(q)
in the case of the lending manager of an entity or a branch office of an entity, fail to 
exercise reasonable supervision over the activities of:
(i)
unlicensed staff; or
(ii)
a mortgage loan originator who is affiliated with the lending manager;
(r)
pay or offer to pay an individual who does not hold a license under this chapter for 
work that requires the individual to hold a license under this chapter;
(s)
in the case of a dual licensed title licensee as defined in Section 
31A-2-402
:
(i)
provide a title insurance product or service without the approval required by 
Section 
31A-2-405
; or
(ii)
knowingly provide false or misleading information in the statement required by 
Subsection 
31A-2-405
(2);
(t)
represent to the public that the person can or will perform any act of a mortgage loan 
originator if that person is not licensed under this chapter because the person is 
exempt under Subsection 
61-2c-105
(4), including through:
(i)
advertising;
(ii)
a business card;
(iii)
stationery;
(iv)
a brochure;
(v)
a sign;
(vi)
a rate list; or
(vii)
other promotional item;
(u)
(i)
engage in an act of loan modification assistance without being licensed under 
this chapter;
(ii)
engage in an act of foreclosure rescue that requires licensure as a real estate agent 
or real estate broker under Chapter 2, Division of Real Estate, without being 
licensed under that chapter;
(iii)
engage in an act of loan modification assistance without entering into a written 
agreement specifying which one or more acts of loan modification assistance will 
be completed;
(iv)
request or require a person to pay a fee before obtaining:
(A)
a written offer for a loan modification from the person's lender or servicer; and
(B)
the person's written acceptance of the offer from the lender or servicer;
(v)
induce a person seeking a loan modification to hire the licensee to engage in an 
act of loan modification assistance by:
(A)
suggesting to the person that the licensee has a special relationship with the 
person's lender or loan servicer; or
(B)
falsely representing or advertising that the licensee is acting on behalf of:
(I)
a government agency;
(II)
the person's lender or loan servicer; or
(III)
a nonprofit or charitable institution;
(vi)
recommend or participate in a loan modification that requires a person to:
(A)
transfer title to real property to the licensee or to a third-party with whom the 
licensee has a business relationship or financial interest;
(B)
make a mortgage payment to a person other than the person's loan servicer; or
(C)
refrain from contacting the person's:
(I)
lender;
(II)
loan servicer;
(III)
attorney;
(IV)
credit counselor; or
(V)
housing counselor; or
(vii)
for an agreement for loan modification assistance entered into on or after May 
11, 2010, engage in an act of loan modification assistance without offering in 
writing to the person entering into the agreement for loan modification assistance 
a right to cancel the agreement within three business days after the day on which 
the person enters the agreement;
(v)
sign or initial a document on behalf of another person, except for in a circumstance 
allowed by the division by rule, with the concurrence of the commission, made in 
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
(w)
violate or fail to comply with a provision of Title 57, Chapter 28, Utah Reverse 
Mortgage Act;
 or
(x)
engage in any act or practice that violates appraisal independence as defined in 15 
U.S.C. Sec. 1639e or in the policies and procedures of:
(i)
the Federal Home Loan Mortgage Corporation; or
(ii)
the Federal National Mortgage Association
.
; or
(y)
use prescreened trigger lead information to solicit a consumer who has applied for a 
mortgage loan with another financial institution, if the person:
(i)
fails to state in the initial solicitation that the person is not affiliated with the 
mortgage loan company or mortgage loan broker with which the consumer 
initially applied;
(ii)
fails in the initial solicitation to conform to state and federal law relating to 
solicitations using consumer reports, including the requirement to make a firm 
offer of credit to the consumer; or
(iii)
solicits a consumer with an offer of certain rates, terms, and costs with the 
knowledge that the person will subsequently change the rates, terms, or costs to 
the detriment of the consumer.
(2)
(3)
Regardless of whether the crime is related to the business of residential mortgage 
loans, it is a violation of this chapter for a licensee or a person who is a certified 
education provider to:
(a)
be convicted of:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor;
(b)
plead guilty or nolo contendere to:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor; or
(c)
enter into a plea in abeyance agreement in relation to:
(i)
a felony; or
(ii)
any of the following involving fraud, misrepresentation, theft, or dishonesty:
(A)
a class A misdemeanor;
(B)
a class B misdemeanor; or
(C)
a criminal offense comparable to a class A or class B misdemeanor.
(3)
(4)
A lending manager does not violate Subsection 
(1)(q)
(2)(q)
 if:
(a)
in contravention of the lending manager's written policies and instructions, an 
affiliated licensee of the lending manager violates:
(i)
this chapter; or
(ii)
rules made by the division under this chapter;
(b)
the lending manager established and followed reasonable procedures to ensure that 
affiliated licensees receive adequate supervision;
(c)
upon learning of a violation by an affiliated licensee, the lending manager attempted 
to prevent or mitigate the damage;
(d)
the lending manager did not participate in or ratify the violation by an affiliated 
licensee; and
(e)
the lending manager did not attempt to avoid learning of the violation.
(4)
(5)
Notwithstanding Subsection 
(1)(m)(iii)
(2)(m)(iii)
, a licensee may, upon 
compliance with Section 
70D-2-305
, charge a reasonable cancellation fee for work done 
originating a mortgage if the mortgage is not closed.
(5)
(6)
(a)
Except as provided in Subsection 
(5)(b)
(6)(b)
, a person transacting the 
business of residential mortgage loans in this state shall provide a prospective 
borrower a copy of each appraisal and any other written valuation developed in 
connection with an application for credit that is to be secured by a first lien on a 
dwelling on or before the earlier of:
(i)
as soon as reasonably possible after the appraisal or other valuation is complete; or
(ii)
three business days before the day of the settlement.
(b)
Subject to Subsection 
(5)(c)
(6)(c)
, unless otherwise prohibited by law, a 
prospective borrower may waive the timing requirement described in Subsection 
(5)(a)
(6)(a)
 and agree to receive each appraisal and any other written valuation:
(i)
less than three business days before the day of the settlement; or
(ii)
at the settlement.
(c)
(i)
Except as provided in Subsection 
(5)(c)(ii)
(6)(c)(ii)
, a prospective borrower 
shall submit a waiver described in Subsection 
(5)(b)
(6)(b)
 at least three business 
days before the day of the settlement.
(ii)
Subsection 
(5)(b)
(6)(b)
 does not apply if the waiver only pertains to a copy of 
an appraisal or other written valuation that contains only clerical changes from a 
previous version of the appraisal or other written valuation and the prospective 
borrower received a copy of the original appraisal or other written valuation at 
least three business days before the day of the settlement.
(d)
If a prospective borrower submits a waiver described in Subsection 
(5)(b)
(6)(b)
 and 
the transaction never completes, the person transacting the business of residential 
mortgage loans shall provide a copy of each appraisal or any other written valuation 
to the applicant no later than 30 days after the day on which the person knows the 
transaction will not complete.
Section 3. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-6-25 4:51 PM