Utah Amends Residential Mortgage Practices and Licensing Act
The state of Utah amended its provisions relating to its Residential Mortgage Practices and Licensing Act (RMPLA) that include the exemption of certain nonprofit corporations from licensing requirements. These provisions are effective on May 8, 2018.
The amendment defines “balloon payment” as a required payment in a mortgage transaction that:
- results in a greater reduction in the principle of the mortgage than a regular installment payment; and
- is made during or at the end of the term of the loan.
The amendment excludes from licensing a nonprofit corporation that:
- is exempt from paying federal income taxes;
- has as the nonprofit corporation’s primary purpose serving the public by helping low-income individuals and families build, repair, or purchase housing;
- does not require, under the terms of a mortgage, a balloon payment;
- performs loan originator activities, using only unpaid volunteers or employees whose compensation is not based on the number or size of the mortgage transactions that the employees originate.
Rhona Kyeyune, LLM, is a regulatory compliance consultant with CLA. She is a graduate of Makerere University and earned her master of laws at Boston University School of Law.
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