Mortgage Lending in Utah
Utah’s mortgage regulation structure is complex because two different agencies regulate different activities. Brokering and retail origination of closed-end residential first mortgages are activities primarily regulated by the Utah Division of Real Estate (DRE).
The Utah Department of Financial Institutions (“this Department” or “DFI”) has authority from the Financial Institution Mortgage Financing Regulation Act, Title 70D of the Utah Code Annotated (UCA), to regulate certain residential mortgage activities conducted with Utah citizens. The most common activities subject to Title 70D are:
- servicing of closed-end residential first mortgages;
- activities performed by Wholesale Lenders for residential mortgages; and
- activities conducted by a Mortgage Lender as defined in UCA §70D-2-102(7).
Those who conduct mortgage activities in Utah are responsible to read Title 70D to determine if they are subject to it and to comply accordingly. You may find Title 70D here: Utah Code – Title 70D – Financial Institution Mortgage Financing Regulation Act.
Mortgage Licensing Tips
You must apply for mortgage licenses in the Nationwide Multistate Licensing System (NMLS). You are responsible to read Title 70D to determine whether you or your company are subject to it; however, you may find the following tips helpful.
Utah DFI – Residential First Mortgage Notification (RFMN)
- The RFMN does not authorize a company to broker or originate retail closed-end residential first mortgages. If you conduct these activities, DRE requirements may apply to you.
- The RFMN is primarily for mortgage servicers, wholesale lenders, and Mortgage Lenders as defined by Title 70D.
- If you are a Mortgage Lender subject to Title 70D, you may also be subject to licensing by the DRE.
- Title 70D does not apply to commercial or business purpose mortgage activities.
Utah DFI – Mortgage Loan Originator License (MLO)
- This Department’s MLO license does not authorize an individual to broker or originate retail closed-end residential first mortgages. If you conduct these activities, DRE requirements may apply to you.
- This Department’s MLO license is primarily for individuals who service residential first mortgage loans. It is also for individuals who originate or service other mortgage types (like second mortgages).
- This Department’s definition of a loan originator is in Utah Code 70D-3-102(12)(a). It does not include an individual who is engaged solely as a loan processor or underwriter.
- If you are an MLO subject to Title 70D and have an active DRE license, you are not required to obtain or keep the DFI license.
- If you are unsure about which license is right for you, please talk to your company’s licensing specialist before submitting an application to the NMLS. The application fees you pay to the NMLS are non-refundable.
- Before this Department will approve an MLO’s application, we must receive proof of surety bond coverage required by Utah Administrative Rule R343-5. Please email either a copy of the individual’s bond or confirmation of coverage under the employer’s company bond to firstname.lastname@example.org.
Mortgage Companies and MLOs under our jurisdiction
This Department does not maintain a list of mortgage companies and MLOs under our jurisdiction because this information is available from https://nmlsconsumeraccess.org.
Interest on Mortgage Loan Reserve Accounts
Utah requires lenders to pay interest on mortgage loan reserve accounts. You may find details here: Utah Code – Title 7-17-3 – Interest on Mortgage Loan Reserve Accounts.
If you have questions, contact Andrea Staheli at 801-538-8834 or email@example.com.