State Codes and Statutes
Statutes > Utah > Title-61 > Chapter-02c > 61-2c-10561-2c-105. Scope of chapter -- Exemptions.
(1) (a) Except as to an individual who will engage in an activity as a mortgage loanoriginator, this chapter applies to a closed-end residential mortgage loan secured by a first lien orequivalent security interest on a dwelling.
(b) This chapter does not apply to a transaction covered by Title 70C, Utah ConsumerCredit Code.
(2) The following are exempt from this chapter:
(a) the federal government;
(b) a state;
(c) a political subdivision of a state;
(d) an agency of or entity created by a governmental entity described in Subsections(2)(a) through (c) including:
(i) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah HousingCorporation Act;
(ii) the Federal National Mortgage Corporation;
(iii) the Federal Home Loan Mortgage Corporation;
(iv) the Federal Deposit Insurance Corporation;
(v) the Resolution Trust Corporation;
(vi) the Government National Mortgage Association;
(vii) the Federal Housing Administration;
(viii) the National Credit Union Administration;
(ix) the Farmers Home Administration; and
(x) the United States Department of Veterans Affairs;
(e) a depository institution;
(f) an entity that controls, is controlled by, or is under common control with a depositoryinstitution;
(g) an employee or agent of an entity described in Subsections (2)(a) through (f):
(i) when that person acts on behalf of the entity described in Subsections (2)(a) through(f); and
(ii) including an employee of:
(A) a depository institution;
(B) a subsidiary of a depository institution that is:
(I) owned and controlled by the depository institution; and
(II) regulated by a federal banking agency, as defined in 12 U.S.C. Sec. 5102; or
(C) an institution regulated by the Farm Credit Administration;
(h) except as provided in Subsection (3), a person who:
(i) makes a loan:
(A) secured by an interest in real property;
(B) with the person's own money; and
(C) for the person's own investment; and
(ii) that does not engage in the business of making loans secured by an interest in realproperty;
(i) except as provided in Subsection (3), a person who receives a mortgage, deed of trust,or consensual security interest on real property if the individual or entity:
(i) is the seller of real property; and
(ii) receives the mortgage, deed of trust, or consensual security interest on real propertyas security for a separate money obligation;
(j) a person who receives a mortgage, deed of trust, or consensual security interest on realproperty if:
(i) the person receives the mortgage, deed of trust, or consensual security interest assecurity for an obligation payable on an installment or deferred payment basis;
(ii) the obligation described in Subsection (2)(j)(i) arises from a person providingmaterials or services used in the improvement of the real property that is the subject of themortgage, deed of trust, or consensual security interest; and
(iii) the mortgage, deed of trust, or consensual security interest is created without theconsent of the owner of the real property that is the subject of the mortgage, deed of trust, orconsensual security interest;
(k) a nonprofit corporation that:
(i) is exempt from paying federal income taxes;
(ii) is certified by the United States Small Business Administration as a small businessinvestment company;
(iii) is organized to promote economic development in this state; and
(iv) has as its primary activity providing financing for business expansion;
(l) except as provided in Subsection (3), a court appointed fiduciary; or
(m) an attorney admitted to practice law in this state:
(i) if the attorney is not principally engaged in the business of negotiating residentialmortgage loans; and
(ii) when the attorney renders services in the course of the attorney's practice as anattorney.
(3) An individual who will engage in an activity as a mortgage loan originator is exemptfrom this chapter only if the individual is an employee or agent exempt under Subsection (2)(g).
(4) (a) Notwithstanding Subsection (2)(m), an attorney exempt from this chapter may notengage in conduct described in Section 61-2c-301 when transacting business of residentialmortgage loans.
(b) If an attorney exempt from this chapter violates Subsection (4)(a), the attorney:
(i) is not subject to enforcement by the division under Part 4, Enforcement; and
(ii) is subject to disciplinary action generally applicable to an attorney admitted topractice law in this state.
(c) If the division receives a complaint alleging an attorney exempt from this chapter is inviolation of Subsection (4)(a), the division shall forward the complaint to the Utah State Bar fordisciplinary action.
(5) (a) An individual who is exempt under Subsection (2) or (3) may voluntarily obtain alicense under this chapter by complying with Part 2, Licensure.
(b) An individual who voluntarily obtains a license pursuant to this Subsection (5) shallcomply with all the provisions of this chapter.
Amended by Chapter 379, 2010 General Session
