2006 Utah Code - 70D-1-7 — Notice upon closing -- Ongoing duty to notify -- Statements required.

     70D-1-7.   Notice upon closing -- Ongoing duty to notify -- Statements required.
     (1) At the time of closing of any mortgage loan the lender shall notify the mortgagor in writing of the name of the initial servicer which will be servicing the loan and the address at which loan payments should be made.
     (2) (a) In the event the servicing of a mortgage loan is assigned, the servicer which assigned the servicing and the successor servicer shall each mail, at least ten days before the due date of the first mortgage payment due after the assignment, a written notice to the mortgagor, at his last known address contained in the assigning servicer's records, notifying the mortgagor of the assignment of servicing and of the address at which future loan payments should be made.
     (b) Unless the assigning servicer regularly provides the information in monthly statements to mortgagors, the notice from the assigning servicer shall also include the following information:
     (i) the date and amount of all payments credited to the account within the previous 12-month period;
     (ii) the balance in any escrow accounts held by the servicer; and
     (iii) the total unpaid balance of the mortgage loan.
     (c) The servicers may, at their option, comply with the requirements of this subsection by both signing one notice and causing it to be mailed to the mortgagor.
     (d) The signatures on any notice required by this section may be printed, stamped, or other facsimile signatures.
     (e) The lender and any subsequent servicer of the loan shall comply with the requirements of Section 7-17-6.
     (3) (a) Inadvertent errors in the notices required in Subsection (2) shall not be construed to waive any payments which would otherwise be due from the mortgagor.
     (b) No late payment penalty may be assessed against a mortgagor with respect to a payment which is misdirected because of errors in the notices required in Subsection (2) or failure to timely mail the notices.
     (4) A lender or servicer of a mortgage loan must credit to the mortgagor's account any payment received as of the date it was received or by the next banking day, unless:
     (a) the payment is insufficient to pay the principal, interest, late charges, and the reserves then due;
     (b) the loan has been referred to an attorney because of default; or
     (c) the payment is received at an address other than the address for payment specified in writing to the mortgagor.

Enacted by Chapter 172, 1990 General Session