No. 36781 (Amendment): Rule R460-4. Additional Servicing Rules

(Amendment)

DAR File No.: 36781
Filed: 09/17/2012 11:49:28 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose for the amendment to this rule is to eliminate obsolete practices of Utah Housing Corporation (UHC).

Summary of the rule or change:

Section R460-4-1 is being eliminated (and subsequently reserved for later use) reflecting the fact that UHC services 100% of mortgage loans it purchases and does not contract with any other entity to service its mortgage loans. Section R460-4-2 is being eliminated in its entirety reflecting the fact that UHC services 100% of mortgage loans it purchases and does not contract with any other entity to service its mortgage loans.

State statutory or constitutional authorization for this rule:

• Subsection 35A-8-711(1)
• Subsection 35A-8-712(4)

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget because Subsection 35A-8-702(3)(b) states that UHC is a "financially independent body" and therefore, receives no state appropriation. Furthermore, the changes made to this rule are merely clarifying in nature and do not entail any additional requirements.

local governments:

There is no cost or savings to any local government because changes made to this rule are merely eliminating obsolete practices.

small businesses:

There is no cost or savings to any small businesses because the changes made to this rule are merely eliminating obsolete practices.

persons other than small businesses, businesses, or local governmental entities:

There is no cost or savings to any person because the changes made to this rule are merely eliminating obsolete practices.

Compliance costs for affected persons:

There are no anticipated additional compliance costs (in addition to existing compliance costs) for persons affected by this rule.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on businesses from the implementation of the changes to this rule. The changes simply eliminate business practices in which UHC has not been involved for a number of years.

Grant S. Whitaker, President and CEO

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Housing Corporation (Utah)
Administration
2479 LAKE PARK BLVD
WEST VALLEY CITY, UT 84120

Direct questions regarding this rule to:

• Jonathan Hanks at the above address, by phone at 801-902-8221, by FAX at 801-902-8321, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2012

This rule may become effective on:

11/21/2012

Authorized by:

Grant Whitaker, President and CEO

RULE TEXT

R460. Housing Corporation, Administration.

R460-4. Additional Servicing Rules (Reserved).

R460-4-1. [Transfers of Servicing]Reserved.

Reserved.[UHC may establish criteria relating to the transfer of mortgage loan servicing from one servicer to another eligible servicer to ensure that acceptable levels of servicing performance will be achieved and to preserve UHC's rights with respect to the transferor mortgage lender and servicer. UHC may require that the transferor servicer and transferee servicer enter into a written agreement with UHC with respect to the transfer and the obligations of the parties.

 

R460-4-2. Default Servicers.

UHC may contract with eligible servicers to assume the servicing obligations of another servicer upon the termination of the latter servicer's eligibility to service mortgage loans. The default servicing contracts may be on terms as UHC deems necessary to ensure the efficient collection of and preservation of the value of mortgage loans which are the subject of the servicing.]

 

KEY: housing finance

Date of Enactment or Last Substantive Amendment: [1990]2012

Notice of Continuation: October 15, 2007

Authorizing, and Implemented or Interpreted Law: [9-4-910; 9-4-911]35A-8-711; 35A-8-712

 

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