Contact Us

Utah Legislative Update

The Utah legislature has recently amended its mortgage loan originator licensing laws to allow temporary authority, the law setting recording fees; the law regarding notices filed with the State Construction Registry (“Registry”); the laws allowing remote notarization and liability for notarial acts of an employee.  All the laws discussed are effective May 13, 2019.  UTAH […]

The Utah legislature has recently amended its mortgage loan originator licensing laws to allow temporary authority, the law setting recording fees; the law regarding notices filed with the State Construction Registry (“Registry”); the laws allowing remote notarization and liability for notarial acts of an employee.  All the laws discussed are effective May 13, 2019. 

UTAH SENATE BILL 140

An individual is temporarily authorized to act as a mortgage loan originator if:

  • An entity licensed to transact the business of residential mortgage loans employs the individual;
  • The individual submits an application for licensure as a mortgage loan originator;
  • The individual demonstrates that the individual:
    • Is registered as a mortgage loan originator with a depository institution and was registered in the nationwide database as a mortgage loan originator during the one-year period before the day on which the individual submitted the application; or
    • Was licensed as a mortgage loan originator in another state during the 30-day period before the day on which the individual submitted the application; and
  • The individual has not in any governmental jurisdiction:
    • Had an application for licensure as a mortgage loan originator denied;
    • Had a mortgage loan originator license revoked or suspended;
    • Been subject to, or served with, a cease and desist order in connection with a residential mortgage loan transaction; or
    • Been convicted of, pled guilty to, pled no contest to, or resolved by a plea in abeyance agreement, a crime that would preclude the individual from licensure as a residential mortgage loan originator, as provided by rule.

Temporary authorization for an individual who meets the requirements:

  • Begins the day on which the individual submits an application; and
  • Ends the day on which any of the following occurs:
    • The individual withdraws their application for licensure;
    • The application for licensure is denied;
    • The application is granted; or
    • 120 days pass after the day on which the individual submits an application for registration in the nationwide database.

An individual with temporary authorization or a person employing an individual with temporary authorization are subject to the same requirements as if the individual was licensed in Utah as a mortgage loan originator

UTAH HOUSE BILL 247

The recording fee for a standard instrument is now $40 (previously $10).  A county recorder may not charge more than one recording fee for each instrument, regardless of whether the instrument bears multiple descriptive titles or includes one or more attachments as part of the instrument. 

In addition, each county must accept and provide for electronic recording of instruments by January 1, 2022.

UTAH HOUSE BILL 395

A property owner may file with the State Construction Registry (“Registry”) a notice of intent to finance which must state:

  • the anticipated date on which financing will occur;
  • the anticipated lender's name, address, and telephone number;
  • the name of the trustor on the trust deed securing the anticipated loan;
  • the tax parcel identification number of each parcel included in the project property; and
  • the name of the county in which the project property is located.

If an owner chooses to file a notice of intent to finance, it must be filed no less than 14 days before the date on which the financing is anticipated to occur.  If the financing does not occur within 30 days after the anticipated date specified in the notice of intent to finance, the notice of intent to finance will automatically have no effect and must be removed from the Registry.

After a notice of intent to finance is filed on a project property, each subcontractor that has filed a preliminary notice pertaining to the project property may file with the Registry a final lien waiver.  The final lien waiver may be filed on the Registry even if no notice of intent to finance was filed on the registry.

UTAH HOUSE BILL 408

The Utah legislature recently amended its laws to create liability for an employer of a notary public in certain cases.  Employers are now liable for damages proximately caused by an employee notary’s misconduct in performing a notarization if the notary public was acting within the course and scope of the notary public’s employment and the employer had knowledge of, consented to, or permitted the misconduct.

UTAH HOUSE BILL 52

The Notaries Public Reform Act has been amended to allow notarizations to be performed remotely.

“Electronic recording” means the audio and video recording of a remote notarization.

“Electronic seal” means an electronic version of the notarial seal that a remote notary may attach to a notarial certificate to complete a remote notarization.

“In the presence of the notary” means that an individual:

  • Is physically present with the notary in close enough proximity to see and hear the notary; or
  • Communicates with a remote notary by means of an electronic device or process that allows the individual and remote notary to communicate with one another simultaneously by sight and sound and complies with all applicable rules.

For a remote notarization only, a third party’s affirmation of an individual’s identity by means of the following will provide satisfactory evidence of identity:

  • Dynamic knowledge-based authentication, which may include requiring the individual to answer questions about the individual’s personal information obtained from public or proprietary data sources; or
  • Analysis of the individual’s biometric data, which may include facial recognition, voiceprint analysis, or fingerprint analysis.

A notary must obtain a remote notary certification in order to perform remote notarizations.  A remote notary who receives a remote notary certification may perform a remote notarization if the remote notary is physically located in Utah.

A remote notary that performs a remote notarization for an individual that is not personally known to the notary must, at the time the remote notary performs the remote notarization, establish satisfactory evidence of identity for the individual by:

  • Communicating with the individual using an electronic device or process that allows the individual and remote notary to communicate with one another simultaneously by sight and sound and complies with all rules.
  • Requiring the individual to transmit to the remote notary an image of a valid personal identification (such as photograph, signature and physical description issued by the federal government or a state government) or passport that is of sufficient quality for the remote notary to establish satisfactory evidence of identity.

A remote notary must:

  • Create an audio and video recording of the performance of each remote notarization and store the recording as required;
  • Take reasonable steps, consistent with industry standards, to ensure that any non-public data transmitted or stored in connection with a remote notarization performed by the remote notary is secure from unauthorized interception or disclosure;
  • Include a statement in the notarial certificate that the remote notary performed the notarization remotely;
  • Keep a secure electronic journal, containing specified information, of each remote notarization the notary performs; and
  • Attach the remote notary’s electronic signature and electronic seal to an electronic notarial certificate when performing a remote notarization in a manner that makes evidence any subsequent change or modification to:
    • The notarial certificate; or
    • Any electronic record, that is a part of the notarization, to which the notarial certificate is attached.

A lawfully performed remote notarization satisfies any provision of state law that requires an individual to personally appear before, or be in the presence of, a notary at the time the notary performs a notarial act.

Sign up for news + updates

Expert insights and regulatory updates on RegTech, compliance management, and fair lending.
[piotnetforms id=3756]

Diane Jenkins

Director, National Mortgage Compliance Practice Group, AsurityDocs Of Counsel, Sandler Law Group

Recommended Resources

Goals Module Overview

Learn more about the Goals Module and its key monitoring and reporting features.

Reg+Tech Magazine Volume 2 Issue 1

Learn about the changes of state consumer protection and the responsibility of financial services institutions to pursue operational excellence and a culture of compliance.

Reg+Tech Magazine Vol. 1 Issue 2

Regulatory and technology experts discuss innovation, CRA reforms, and how single-close construction loans are reenergizing rural America.

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram