61-2d-102 - Definitions.
61-2d-102. Definitions.
As used in this part:
(1) "Accelerate" means a demand for immediate repayment of the entire balance of aresidential mortgage loan.
(2) "Borrower" means a person that:
(a) seeks a high-cost mortgage; or
(b) is obligated under a high-cost mortgage.
(3) "High-cost mortgage" means a borrower credit transaction that is secured by theborrower's principal dwelling, if any of the following apply with respect to such borrower credittransaction:
(a) the transaction is secured by a first mortgage on the borrower's principal dwelling andthe annual percentage rate on the credit, at the consummation of the transaction, will exceed bymore than eight percentage points the yield on treasury securities having comparable periods ofmaturity on the 15th day of the month immediately preceding the month in which the applicationfor the extension of credit is received by the lender;
(b) the transaction is secured by a junior or subordinate mortgage on the borrower'sprincipal dwelling and the annual percentage rate on the credit, at the consummation of thetransaction, will exceed 10 percentage points the yield on treasury securities having comparableperiods of maturity on the 15th day of the month immediately preceding the month in which theapplication for the extension of credit is received by the lender; or
(c) (i) the total points and fees payable at or before the transaction will exceed the greaterof 8% of the total loan amount or $400;
(ii) (A) the $400 figure shall be adjusted annually on January 1 to match the adjustednumber adopted by the Board of Governors of the Federal Reserve in accordance with Section226.32(a)(1)(ii) of the Code of Federal Regulations; or
(B) if the Board of Governors of the Federal Reserve System does not announce anadjusted figure, the last adjustment of the $400 figure shall be adjusted annually on January 1 bythe annual percentage change in the Consumer Price Index that was reported on the precedingJune 1; and
(d) the loan is made by or originated through a person or business required to hold alicense as provided in Title 61, Chapter 2c, Utah Residential Mortgage Practices and LicensingAct.
(4) "Lender" means a person that:
(a) offers a high-cost mortgage; or
(b) extends a high-cost mortgage; and
(c) is required to have a license as provided in Title 61, Chapter 2c, Utah ResidentialMortgage Practices and Licensing Act.
(5) "Prepay" or "prepayment" means to make a payment to a lender that:
(a) is more than the amount of the next scheduled payment due;
(b) pays more than half of the principal balance of the high-cost mortgage; and
(c) is paid more than 24 months before the last scheduled payment according to the termsof the high-cost mortgage when it is made.
(6) "Residential mortgage transaction" means a transaction in which a mortgage, deed oftrust, purchase money security interest arising under an installment sales contract, or equivalentconsensual security interest is created or retained in the borrower's principal dwelling to finance
the acquisition or initial construction of that dwelling.
(7) "Reverse mortgage transaction" means a nonrecourse borrower credit obligation inwhich:
(a) a mortgage, deed of trust, or equivalent consensual security interest securing one ormore advances is created in the borrower's principal dwelling; and
(b) any principal, interest, or shared appreciation or equity is due and payable, other thanin the case of default, only after:
(i) the borrower dies;
(ii) the dwelling is transferred; or
(iii) the borrower ceases to occupy the dwelling as a principal dwelling.
Amended by Chapter 372, 2009 General Session