Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes to the Utah-specific version of the Advanced Fee/Application Disclosure (Cx2783). This multi-state document is provided for loans secured by property in Utah pursuant to the provisions of Utah Code Ann. §§ 61-2C-301(1)(b) & 70D-2-305. We will be modifying the Utah-specific version of this document to reflect these citations, as well as to delete the lender signature line (since it is not required).
In addition, we will be modifying the Utah-specific version of Manufactured Home Affixation Affidavit (Cx43) in order to make it match the model affidavit set forth in Ibid.70D-2-401(8)(c), with some alterations in order to make the affidavit meet FNMA’s affidavit of affixation standards (see FNMA Ann. 07-12 & 03-06). However, the content of this form is dynamic and will print variable text depending upon whether the manufactured home is covered by a certificate of title or not. In addition, reference must be made to the borrower’s current residence at the time the affidavit is recorded, including the county.
Since these two types of information are not always passed to us from LOS’, we have made two new global prompts for filling out Fields 60055 (Manufactured Home is Covered by Certificate of Title) and 32769 (Borrower Mailing Address: County) in order to properly fill out Cx43. These prompts will trigger under the following conditions:
- “Manufactured/Mobile Home” equals “Yes”
- “State Code” equals “Utah”
- “Document Package Type” equals “Closings”
We will also be adding a condition to the configurations for UT Disclosure of Servicer (Cx1001) and UT Loan Notice (Cx15693) so that these documents will only print when “Loan Term Over 24 Months” equals “Yes.” These documents are required under the Mortgage Lending and Servicing Act (Ibid. § 70D-2-101 through 70D-2-506), which exempts from its provisions “a mortgage loan of two years or less” (Ibid. § 70D-2-103).
We will also be creating a new UT Consumer Credit Code Subordination Agreement (Cx18666). Like nearly all state-versions of the Uniform Consumer Credit Code, the Utah Consumer Credit Code (UCCC) exempts from its provisions a variety of loans, most notably closed-end ones secured by a first lien on land. However, it also allows for such exempted loans to be subordinated to the UCCC by written agreement (see Utah Code Ann. § 70C-1-202).
In order to provide clients the option of subordinating their first lien loans to the UCCC, we will now be providing, upon request, Cx18666, in which both the lender and the borrower agree to subordinate their loan to the provisions of the UCCC. Once requested, it will print under the following conditions:
- “Document Package” equals “Closing”
- “Lien Position” equals “FirstLien”
- “HELOC” equals “No”
- “State Code” equals “Utah”
These changes will go into effect on June 12, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
June 5, 2014
DR 134671 and 150381