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In the state of Utah mortgage financing and regulation are monitored by the Mortgage Lending and Servicing Act. The legislature finds it important to frame a regulation which will serve the interest of the public at large. Thus if a borrower wants to avail a mortgage loan there, then his transactions with the lender will be governed by this Act.

Mortgage lending and Servicing Act

• As per the Act, the mortgage lender and broker are required to give a written notice to the borrower stating that the lender may sell the loan or assign it to someone else. But in that case the loan may not be serviced by the lender who has actually originated it. The lender should provide the notice during the time of application of the loan.
  
  
• While processing the loan the mortgage lender or broker shall not accept any type of fees from the borrower. If the lender or broker accepts any type of fees from the borrower then the nature of the fee i.e. whether the fee is fully refundable or partially refundable has to be stated in the statement signed by the applicant.
  
  
• Further at the time of closing the loan the mortgage lender should inform the borrower in writing, the name of the loan servicer and the address where the loan payments will be made. In addition, he must provide the borrower with information regarding balance in his/her escrow account, the unpaid balance of the mortgage loan and the date and amount of all payments credited to his account in the previous 12 months. The mortgage lender must provide these details within 15 days of closing.
  
  
• The lender should also provide the borrower with interest on his escrow account at the rate of 5¹/₂% plus net of 11th District monthly weighted average cost of fund index i.e. weighted average cost of fund index less 1.5 percentage points or the statement savings rate or the share account rate offered to the public of the accounts of the same nature held by the depository institution having reserve account. If the borrower does not wish to have an escrow account then the lender may give him the option of having a non interest bearing reserve account. The lender may service this account free of cost or else the insurance premiums and taxes will be paid from the borrower's account.
  
  
• The lender should provide the borrower with a statement showing the amount received from the latter towards principal and interest payment towards the escrow account and the amount disbursed from it. The statement should be provided within 60 days of the end of the calendar year. In addition, if the lender fails to pay the insurance premiums and taxes in time then the accrued penalty charges will be paid by him.

Utah Foreclosure Law

As per Utah foreclosure law, if lenders wish to foreclose the mortgage transaction, they may do so by using the judicial foreclosure process. For such purposes both judicial and non-judicial foreclosure laws are available. In a foreclosure process the primary security instrument is Deed of Trust. The total time length of the foreclosure process varies and the lender has the right of redemption. Further if a case is filed in the court of law for foreclosing a deficiency account of the borrower then judgement on deficiency account is also allowed by the law.