Utah Code Ann. § 61-2d-105(1) & (2) requires, in connection with a high-cost mortgage, a disclosure to be provided to the borrower forewarning them of the potential consequences of obtaining such a mortgage. We provide Cx3774 (UT High Cost Home Loan Disclosures) for this requirement.
Ibid. § 61-2d-105(3) & (4) prohibits the terms of the high-cost mortgage from changing subsequent to such disclosures being provided, if they make the disclosures inaccurate. An exception, however, is made if the lender provides new disclosures.
Under Subsection (4), new disclosures may be provided over the telephone, as long as the change in the mortgage terms is initiated by the borrower and, at consummation, the lender provides the disclosures in writing, as well as certifying in writing, with the borrower, that the disclosures were also provided by telephone at least three days prior to consummation.
To accommodate this, we will now be providing Cx17008 as an “upon request” document, for clients whose business practice typically provides for providing these high-cost mortgage disclosures over the telephone. This is a very simple document, in which both the borrower and the lender certify that the disclosures were provided by telephone at least three days prior to consummation.
Once requested, this document will print under the following conditions:
- When “State Code” equals “Utah”.
- When “Document Package” equals “Closing”.
- When “HCL-State” equals “Yes”.
In connection with the change to make Cx17008 available to clients providing high-cost mortage loans in Utah, we will also be modifying the configuration of our UT High Cost Home Loan Disclosures (Cx3774) to print in Closings for all clients, in order to ensure compliance with Utah Code Ann. § 61-2d-105(4) mentioned above.
These changes will be in place on June 11, 2014. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
June 4, 2014