Utah Modifies Provisions Regarding Record Requirements and Investigations under RMPLA
The state of Utah modified its provisions under its Residential Mortgage Practices and Licensing Act (RMPLA) relating to licensure requirements, record requirements and investigations. These provisions are effective on May 8, 2018.
Section 2 of the amendment provides that “the division of real estate may not license an entity and a licensed entity may not conduct the business of residential mortgage loans unless the entity conducts the entity’s business of residential mortgage loans from a location within the United States.”
Section 3 provides for record requirements and states that “a licensee, or a person required to be licensed shall maintain the licensee’s or the person’s possession a record required for that licensee by a rule made by the division.”
Section 4 states that “a failure to respond to a request by the division in an investigation within 10 days after the day on which the request is served is considered as separate violation of this chapter.”
Section 7 amends provisions relating to registration requirements and qualifications under the Appraisal Management Company Registration and Regulation Act. It states that “an appraisal management company is required to register if in a calendar year, the company oversees an appraiser panel of twenty-five or more certified or licensed appraisers including at least one appraiser certified or licensed in the state and at least one appraiser certified or licensed in a state other than Utah, a territory, or the District of Columbia.”
Section 10 provides for fees charged by the division of real estate for registration and services and states that “the division shall collect the annual registry fee from each appraisal management company and each federally regulated appraisal Management Company, and transfer the fees collected to the Appraisal Subcommittee on a monthly basis.”
Section 11 provides for the appraisal management company adherence to professional standards and states that the “appraisal management company shall have a system in place to ensure that it only selects for a real estate appraisal activity an appraiser who is independent of the transaction and has the requisite education, expertise, and experience necessary to competently complete the real estate appraisal activity for the particular market and property type.”
“The appraisal management company shall also conduct its services in accordance with the requirements of the Truth in Lending Act, 15 U.S.C. Sec. 764 1639e (a)-(i), and the regulations thereunder.”
Section 12 provides that the “division of real estate authority may examine any book or record of an appraisal management company and require the appraisal management company to submit any report, information, or document to the division.”
“Upon the Appraisal Subcommittee’s request, the division shall transmit a report to the Appraisal Subcommittee regarding the division’s supervisory activities involving appraisal management companies or other third-party providers of appraisals and appraisal management services, including any investigation the division initiates or disciplinary action the division takes.”
Section 13 provides that “a license under this chapter is not required for services rendered by an attorney admitted to practice law in Utah in performing the attorney’s duties as an attorney.”
The Real Estate Appraiser and Licensing and Certification Act provisions regarding the duties of the real estate appraiser licensing and certification board and the division of real estate’s denial of licensure, certification, or registration and investigations are also modified.
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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