No. 33376 (Repeal): Rule R162-204. Residential Mortgage Record Keeping Requirements

(Repeal)

DAR File No.: 33376
Filed: 02/11/2010 09:38:01 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Rule R162-204 is repealed in light of the Division's proposed new Rule R162-2c which updates the provisions of the existing rule to comply with the procedures mandated by the nationwide database. (DAR NOTE: The proposed new Rule R162-2c is under DAR No. 33372 in this issue, March 1, 2010, of the Bulletin.)

Summary of the rule or change:

Rule R162-204 is repealed in its entirety.

State statutory or constitutional authorization for this rule:

• Subsection 61-2c-103(3)

Anticipated cost or savings to:

the state budget:

Repealing this rule relieves the state from having to oversee and enforce it. The costs to the state of implementing and overseeing the new provisions as to record-keeping requirements are included in the rule analysis for proposed new Rule R162-2c.

local governments:

Local governments have never been subject to this rule. Repealing it will have no fiscal impact to local governments.

small businesses:

Repealing this rule relieves small businesses from having to comply with it. The costs to small businesses of having to comply with the new provisions as to record-keeping requirements are included in the rule analysis for proposed new Rule R162-2c.

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

Repealing this rule relieves affected persons from having to comply with it. The costs to affected persons of having to comply with the new provisions as to record-keeping requirements are included in the rule analysis for proposed new Rule R162-2c.

Compliance costs for affected persons:

In repealing this rule, the division relieves affected persons of any obligation to comply with it. There are no compliance costs.

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

No fiscal impact to businesses is anticipated from this rule repeal as a substitute rule amendment containing the substance of this provision is also proposed by the Division.

Francine A. Giani, Executive Director

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

Commerce
Real Estate
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, 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:

03/31/2010

This rule may become effective on:

04/07/2010

Authorized by:

Deanna Sabey, Director

RULE TEXT

R162. Commerce, Real Estate.

[R162-204. Residential Mortgage Record Keeping Requirements.

R162-204-1. Residential Mortgage Record Keeping Requirements.

204.1.1 Entity Requirements. An entity licensed under the Utah Residential Mortgage Practices Act shall maintain for the period set forth in Utah Code Section 61-2c-302 the following records:

(a) Application forms;

(b) Disclosure forms;

(c) Truth-in-Lending forms;

(d) Credit reports and the explanations to the credit reports;

(e) Conversation logs;

(f) Verifications of employment, paycheck stubs, and tax returns;

(g) Proof of legal residency, if applicable;

(h) Appraisals, appraisal addenda, and records of communications between the appraiser and the registrant or lender;

(i) Underwriter denials;

(j) Notices of adverse action;

(k) Loan approval; and

(l) All other records required by underwriters involved with the transaction.

204.1.2. Principal Lending Manager Requirements. Except as provided in Subsection 204.1.2.1, the principal lending manager of an entity is responsible to make the records set forth in Section 204.1.1 available to the Division as provided in Utah Code Annotated Section 61-2c-302(3).

204.1.2.1. Defunct entity. If a licensed entity ceases doing business in Utah, an owner or director of the entity, rather than the principal lending manager, is responsible to make the records set forth in Section 204.1.1 available to the Division.

204.1.3. Disposal of Records. If an entity licensed under the Utah Residential Mortgage Practices Act disposes of the records under this section after the end of the retention schedule in Utah Code Section 61-2c-302, the entity shall dispose of the records in a reasonable manner that safeguards any personal information, as defined in Utah Code Annotated Section 13-44-102.

 

KEY: residential mortgage loan origination

Date of Enactment or Last Substantive Amendment: June 1, 2009

Notice of Continuation: December 13, 2006

Authorizing, and Implemented or Interpreted Law: 61-2c-302]

 

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