No. 41480 (New Rule): Rule R343-11. Rule Designating Applicable Federal Law for a Mortgage Lender, Broker, or Servicer Subject to the Jurisdiction of the Department of Financial Institutions

(New Rule)

DAR File No.: 41480
Filed: 04/17/2017 03:04:56 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Under Subsection 70D-2-502(2)(b), the department shall by rule "designate which one or more federal laws are applicable to a person described in Subsection (2)(a)."

Summary of the rule or change:

The proposed new rule designates which one or more federal laws are applicable to a mortgage lender, broker, or servicer subject to the jurisdiction of the department. The new rule establishes that designated federal law may only be enforced by the department by taking action permitted under Title 70D and the applicable chapters set forth in Subsection 70D-2-502(2)(b).

Statutory or constitutional authorization for this rule:

• Subsection 70D-2-502(2)(b)

Anticipated cost or savings to:

the state budget:

No impact on the state budget as compliance to the rule affects mortgage lenders, brokers, or servicers and not the department.

local governments:

Local governments are not involved in the regulation of mortgage lenders, brokers, or servicers and are, therefore, not subject to this rule.

small businesses:

Mortgage lenders, brokers, and servicers are currently required to comply with the designated federal laws. Therefore, compliance to the rule will not impact their costs.

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

Mortgage lenders, brokers, and servicers are currently required to comply with the designated federal laws. Therefore, compliance to the rule will not impact their costs.

Compliance costs for affected persons:

Mortgage lenders, brokers, and servicers are currently required to comply with the designated federal laws. Therefore, compliance to the rule will not impact their costs.

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

Mortgage lenders, brokers, and servicers are currently required to comply with the designated federal laws. Therefore, compliance to the rule will not impact their costs.

Edward Leary, Commissioner

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

Financial Institutions
Nondepository LendersRoom 201
324 S STATE ST
SALT LAKE CITY, UT 84111-2393

Direct questions regarding this rule to:

• Paul Allred at the above address, by phone at 801-538-8854, by FAX at 801-538-8894, 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:

06/14/2017

This rule may become effective on:

06/21/2017

Authorized by:

Edward Leary, Commissioner

RULE TEXT

R343. Financial Institutions, Nondepository Lenders.

R343-11. Rule Designating Applicable Federal Law for a Mortgage Lender, Broker, or Servicer Subject to the Jurisdiction of the Department of Financial Institutions.

R343-11-1. Authority, Scope and Purpose.

(1) This rule is issued pursuant to Section 70D-2-502(2)(b).

(2) Violations of federal law designated by this rule may only be enforced by the department by taking action permitted under Title 70D and the applicable chapters set forth in Section 70D-2-502(2).

(3) This rule designates which one or more federal laws the department may enforce and are applicable to mortgage lenders, brokers, or servers subject to the jurisdiction of the department.

 

R343-11-2. Definitions.

(1) "Department" means the Department of Financial Institutions.

(2) "Federal Law" means:

(a) a statute passed by the Congress of the United States; or

(b) a final regulation:

(i) adopted by an administrative agency of the United States government; and

(ii) published in the code of federal regulations or the federal register.

 

R343-11-3. Applicable Federal Law.

In accordance with Section 70D-2-502(2)(b), the following federal laws are applicable to mortgage lenders, brokers, or servers subject to the jurisdiction of the department:

(1) Truth in Lending Act, 15 U.S.C. Sec. 1601 et seq., and its implementing federal regulations;

(2) Equal Credit Opportunity Act, 15 U.S.C. Sec. 1691, and its implementing federal regulations;

(3) Real Estate Settlement Procedures Act, 12 U.S.C. Sec. 2601 et seq., and its implementing federal regulations;

(4) Fair Credit Reporting Act, 15 U.S.C. Sec. 1681 et seq., and its implementing federal regulations;

(5) Home Mortgage Disclosure Act, 12 U.S.C. Sec. 2801 et seq., and its implementing federal regulations.

 

KEY: financial institutions, federal law

Date of Enactment or Last Substantive Amendment: 2017

Authorizing, Implemented, or Interpreted Law: 70D-2-502(2)(b)

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