Newsletters

• Director's Message - Appraiser Independence
• Rule Developments
• Practical Application of Real Estate Appraisal (PAREA)
• Meet the Real Estate Commission
• Mortgage Renewal 2024
• Division Staff Spotlight
• MCR Due Date Extension
• Mandatory Courses
• 4th Quarter Licensing and Disciplinary Actions
• Kagie’s Korner
• Lead-Based Paint Disclosures
• AARO Conference Recap
• Foreclosure Rescue
• ARELLO Recap
• 2023 IDW Recap
• Newsletter feedback QR code
• Social Media Links
• Credits

On October 31, 2023, a proposed AMC rule amendment was allowed to lapse and some changes to the proposed rule were considered. The proposed rule amendment would require an AMC that offers an appraisal assignment that uses a third-party data collector to communicate to the appraiser information about who collected data, when the data was collected, and other relevant information.
In addition, the proposed rule would reduce the education requirement for appraisal management company personnel who select an appraiser for an appraisal assignment or review an appraisal report. The proposed rule amendment is working its way through the amendment process and is currently being reviewed by the Department of Commerce and the Governor’s office. Before any amendment becomes effective, there will be a 30-day public comment period.

-Providing A New Pathway to Become a Licensed Appraiser-

With much anticipation and after many years, a PAREA Course Provider has now been approved for individuals desiring to become a Licensed Appraiser. Candidates will no longer need to find a willing Supervisory Certified Appraiser to work with and be supervised by to obtain the required 1,000 experience hours. The existing Trainee/Supervisory mentorship model continues to be a viable, successful means to become an appraiser. With the addition of PAREA, there are now two pathways toward gaining the necessary experience required to become a Licensed Appraiser.
The Appraisal Institute (AI) is the first PAREA provider to be approved by the Appraisal Qualifications Board (AQB) to offer this standardized approach to gaining the experience necessary to become a Licensed Appraiser.
The flexible, hybrid learning environment allows a student to gain appraisal knowledge and experience on their own time, with a dedicated Certified Appraiser Mentor to answer the student’s questions and offer supporting feedback.
Students will have graded assignments as milestones in their progress. They will complete ten practice assignments with immersive skills activities designed to help students apply the knowledge they are gaining to real-life examples, turning theory into practice.
Both PAREA students and traditional Trainees working with a Supervisory Certified Appraiser are required to complete 150 hours of required Licensed Appraiser qualifying education. PAREA students are required to complete the 150 hours BEFORE they enroll in a PAREA course module. Conversely, qualifying education for individuals utilizing the traditional Trainee Supervisor pathway allows the final 75 hours of Licensed Appraiser Qualifying Education to be completed WHILE accumulating their 1,000 hours of work experience.

Marie McClelland
Chair

Marie McClelland has been an Escrow Officer for over 30 years and is currently employed with First American Title (over 26 years) in Park City as a Branch Manager. Over the years, she has been active on many committees with the Park City Board of Realtors and has been a recipient of the Affiliate of the Year award. Marie has also been involved with various non-profit organizations, including being a 4-H leader in the horsemanship program.

Marie and her husband, Brian are originally from Fenton, Michigan, and made Park City their home in the early 90’s (before there were any traffic lights). They have one son, Dillon, a recent double major graduate from the University of Utah, who is now the Marketing Director for “24 Hours of Lemons” a car racing company.

Marie loves to travel, especially when offshore fishing is part of the vacation agenda, and spending time with her family and their two dogs, Ruger, a Vizsla and Blu, a Miniature Australian Shepherd.

Andrea Wilson
Vice Chair

Andrea Wilson is the Principal/Dual Broker for Dwell Realty Group and Reside Rentals. She has been in the real estate industry since 2004. She is a Cache Valley native and graduated from Utah State University with a bachelor's degree in accounting. She previously served on the Cache Valley Association of Realtors board for several years, both as a Director and Treasurer. In addition to serving as a commission member, she also volunteers on the Utah Association of Realtors Forms Committee. She is married and has one daughter. She enjoys spending time outdoors with her family and dog, including trail running, hiking, and backpacking.

Jim Bringhurst
Commissioner

In addition to serving as a Real Estate Commissioner for the State of Utah, Division of Real Estate, Jim currently serves on the Board of Directors for the Utah Association of REALTORS® and National Association of REALTORS®. He was awarded the 2020 Distinguished REALTOR® Service Award, an award given only 10 times by the Utah Association of REALTORS® in the last 100 years, the 2012 President’s Award, the 2008 REALTOR® of the Year award from the Utah Association of REALTORS®, and the 2007 REALTOR® of the Year and Salesperson of the Year awards from the Salt Lake Board of REALTORS®. Jim has also served as 2004 President of the Salt Lake Board of REALTORS®, 2007 President of the Utah Association of REALTORS®, Director for the National Association of REALTORS®, and Chairman of the Board for the Wasatch Front Regional MLS (utahrealestate.com).

Jim is a passionate defender of private property rights and is a top contributor to the REALTORS® Political Action Committee, which supports both Republican and Democratic candidates who champion home ownership. He has been recognized 3 times by the National Association of REALTORS® as a Hall of Fame Member.

Jim graduated from the University of Utah with a degree in Accounting. He is a native of Salt Lake City and especially enjoys spending time with his wife Lisa, his three children, and three grandchildren, and taking advantage of all the wonderful things that Utah has to offer. Especially golfing, skiing, snowmobiling, hiking, and riding his Harley.

Randy Smith
Commissioner

Randy Smith is one of ten owners of Equity Real Estate, a Utah-based real estate brokerage that serves over 3,700 agents in 22 states. He also owns and manages his own branch in American Fork Utah, where he oversees roughly 220 agents. Randy has been in the real estate business since 1992 and a broker since 1995.

The Randy Smith Real Estate Team is a consistent fixture on the Top 100 National Leaderboard for Equity Real Estate, where over 90% of the team's business comes from repeat clients and their referrals. Randy attributes that to a culture of amazing people dedicated to creating an exceptional customer experience every time!

Randy loves giving back to the community and the profession. Throughout the years he has served in many leadership capacities on the local, state and national level, culminating as the President of the Utah County Association of REALTORS where he was also named their "REALTOR of the Year" a few years back. He currently serves as one of five Real Estate Commissioners for the State of Utah, and is on the Boards of Directors for the Utah Association of REALTORS, and the National Association of REALTORS.

Randy lives in Highland Utah with his beautiful wife, Christina. They have 4 children and five grandchildren.

In his spare time, he enjoys the wind in his face on his motorcycle or spending time with his family at their property at the foot of the Bighorn Mountains in Wyoming.

Rick Southwick
Commissioner

Rick Southwick is an associate broker with eXp Realty. He currently serves on the Utah Real Estate Commission and the Ogden City Planning Commission. Since 1986 he has been engaged full time in the real estate industry. Southwick is a past president of the Northern Wasatch Association of Realtors (2010) and the Utah Association of Realtors (2014). In 2022 he served as Regional Vice President for the National Association of Realtors. Rick is an avid skier and mountain biker. He and his wife Julie have 3 children and one new granddaughter.

The renewal period for mortgage licensing ended December 31, 2023. This year, the Utah Residential Mortgage Commission voted to reduce the usual 2-hour Utah-specific course requirement to 1 hour. In addition to the 1-hour Utah Law Course, mortgage loan originators (MLOs) licensed between November 1st, 2022, and October 31, 2023, were required to complete the 5-hour Utah MLO Course before they could renew their MLO license for 2024. The 1-hour Utah Law Course and the 5-hour Utah MLO Course (if required) are in addition to the 8 hours of Federal CE, which is required nationally for all renewing individual mortgage licensees. Both the 1-hour Utah Law Course and the 5-hour Utah MLO Course are tracked through the NMLS.

Overall, our 2023 renewal period was carried out without any major complications, considering that on November 1^st, there were 9,983 licenses eligible to renew for 2024. Division staff received customary questions from the industry through phone calls, e-mails, and live chats regarding Utah-specific renewal requirements. At the time of this writing, 74% of our licensees requested renewal, and 94% have been approved. As of this date, 480 applicants have not yet had their renewal applications approved, and 2,624 have not yet requested their renewal.

In addition to receiving a confirmation email from the NMLS stating that your renewal has been approved, you will also receive an email from the Division of Real Estate with your mortgage license attached. If you want a printed license, you may print your license at your convenience.  

 If, however, you have not received an email confirmation through the NMLS system that your license renewal is approved and it has been more than two weeks since you requested your renewal, please log into your NMLS account and see if there are deficiencies posted on your license (license items) that are holding up the renewal. Please check your NMLS account in the following manner:

Log into your NMLS account:  Click the “composite view” tab at the top of the screen, then click the “View individual” link from the submenu at the top of the screen, click the “view license/registration list,” link on the left navigation panel and then select your Utah license and the license status will display, click on the hyperlinked number under the “License Items” column to view the license item information screen, item details will display under the “Active License Items” section. License items indicate that corrections or additions are required in your NMLS account.

Generally, for individuals, these items are to complete continuing education requirements or a request to update your employment history, which can be taken care of fairly easily. For entities, the license item is predominately a request for an updated Certificate of Existence that needs to be uploaded to the entity’s MU1 filing under the Certificate of Authority/Good Standing option.  Other reasons for a license item could be failing to provide required documentation or failure to respond to a request from the division. If you need help updating your NMLS record, please contact the NMLS Call Center at (855)-665-7123.

If you requested renewal prior to the December 31, 2023 deadline, and you have no license item requirements, you may continue to use your license according to your license status as of the day you requested your renewal in the NMLS while we review your application. If you failed to request your renewal before the end of the year or failed to complete license item requirements, you should immediately discontinue any activity that requires a mortgage license until your renewal has been approved by the Division.

The division offers a reinstatement period for individuals who fail to complete their annual attestation and request a renewal by December 31, 2023. This period begins January 1^st, 2024, and runs through the end of February 2024.

You will need to complete all continuing education requirements, the 8-hour 2023 Late CE for federal, the 2023 late CE 1-hour Utah Law course, and the 5-hour Utah MLO course (if required), request your renewal through the NMLS, pay the renewal fee and a $50 late fee. If you completed your CE prior to the end of the year but did not request a renewal, you will not need additional CE; you will only need to request a renewal and pay the renewal and late fee through NMLS prior to February 29, 2024. Please visit the NMLS renewal resource center using the link below for more information on requesting a late renewal. https://mortgage.nationwidelicensingsystem.org/slr/common/renewals/Pages/default.aspx

Please note the importance of the February deadline. After that date, licensees who wish to reapply for a Utah mortgage license must meet all requirements for a new license. If you have questions, please contact the Utah Division of Real Estate at (801) 530-6747. For help navigating the NMLS website, please contact the NMLS Call Center at (855)-665-7123.

Meet Lizzie Burila! Lizzie joined the Division of Real Estate in July of 2023 as a Real Estate Licensing Specialist. Prior to joining the Division, Lizzie worked various jobs while trying to determine her overall career goals. After some trial and error, she has found that she enjoys the structure and stability that the Division provides and is excited to dive deeper into the world of Real Estate and see where this new career path may lead!

Originally from Manteca, CA, Lizzie and her family moved to Stansbury Park, where she spent her childhood swimming and playing soccer. When she wasn't busy with sports, she could often be found playing with her dogs or running around with her friends, skateboarding, snowboarding, and exploring the small town.

After high school, Lizzie attended Brigham Young University, where she graduated with her bachelor’s degree in psychology and a minor in Communications. During this time in Provo, she found her passion for helping and understanding others. She now enjoys life in Stansbury Park with her parents and 2 dogs and has her fingers crossed that the housing/rental market may soon relax so she can venture out to live independently.

Lizzie enjoys photography, watching movies, attending concerts, and traveling in her free time. She also enjoys reading and learning about history, philosophy, and almost any other topic that piques her interest. We are happy to have Lizzie on our team and look forward to watching her continued growth and her ever-expanding wealth of knowledge!

The NMLS has requested that the Division offer a grace period for the new Q1 2024 Mortgage Call Report (FV6) filing submission as our Utah statute allows.

Accordingly, the Division has extended the Q1 MCR FV6 filing due date for data occurring between January 1, 2024 – March 31, 2024. Utah Mortgage Entities will have an additional 31 days until June 15, 2024, to submit their Q1 Mortgage Call Report (FV6).

The Q2 2024 MCR (FV6) filing due date will remain August 14, 2023.

With an effective date of January 1, 2024, the four mandatory course outlines for real estate licensees and the required 1-hour Utah law course for mortgage licensees have been adopted.

Real estate licensees are required to complete one of the four mandatory courses to renew their licenses on active status.

Mortgage licensees are required to complete the Utah law course to renew their license.

Much consideration of timely and essential content has gone into the development and approval of these important courses.

The Division thanks those who offered suggestions and provided recommendations for inclusion in these course outlines.  Special thanks to members of the Real Estate and Mortgage Commissions for their thoughtful consideration and approval of the 2024 revised course outlines.

Please note that Utah law allows 30 days for appeal of an order. Some of the actions below might be subject to this appeal right or currently under appeal.

To view a copy of an order referenced in this article please visit the Utah Division of Real Estate Website under the Enforcement Menu, Disciplinary Actions

https://realestate.utah.gov/realestate/index.html

BAKSHI, GEETIKA, sales agent, Midvale, Utah.  In an order dated November 3, 2023, Ms. Bakshi’s license was renewed and, due to a criminal matter occurring during the past licensing period, her license was placed on probation for the renewal period.  Docket number RE-2023-088

BLACKNER, BRAD, sales agent, South Jordan, Utah.  In an order dated November 28, 2023, Mr. Blackner’s application for licensure was denied due to criminal history.  Docket number RE-2023-099

BLUMENTHAL, BRAD W., sales agent, Salt Lake City, Utah.  In an order dated September 29, 2023, Mr. Blumenthal’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-076

BRICE, CHRISTINA, sales agent, Sandy, Utah.  In an order dated September 14, 2023, Ms. Brice’s license was granted and placed on probation for the initial licensing period due to a plea in abeyance agreement in a criminal matter.  Docket number RE-2023-072

CALDWELL, WILLIAM H., principal broker, Ogden, Utah.  In a stipulated order dated September 20, 2023, Mr. Caldwell admitted that he advertised land for sale and that the advertisement did not accurately reflect the amount of property intended to be sold, in violation of Utah law and administrative rules.  Mr. Caldwell agreed to pay a civil penalty of $1,000 and to complete three hours of continuing education in addition to the continuing education required for his next license renewal.  Docket number RE-2023-5021 and DRE case number RE-20-115598

CHRISTENSEN, SHIRLEY, sales agent, Bluffdale, Utah.  In an order dated October 17, 2023, Ms. Christensen’s license was reinstated and, due to having entered into a plea in abeyance agreement in a criminal matter during the past licensing period, her license was placed on probation for the renewal period.  Docket number RE-2023-085

CLINGER, BRIAN J, sales agent, Salt Lake City, Utah.  In an order dated October 17, 2023, Mr. Clinger’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-086

DAFFER, CARSON LEE, sales agent, Pleasant Grove, Utah.  In an order dated September 14, 2023, Mr. Daffer’s license was granted and placed on probation for one year due to a pending criminal matter.  Docket number RE-2023-073

DELEONE, DEAN DENNING, sales agent, Heber City, Utah.  In an order dated September 29, 2023, Mr. Deleone’s license was renewed and, due to having entered into a plea in abeyance agreement in a criminal matter during the past licensing period, this license was placed on probation for the renewal period.  Docket number RE-2023-077

DROGSVOLD STEFANIA, aka STAFANIA R JONES, sales agent, West Point, Utah.  In an order dated September 8, 2023, Ms. Drogsvold’s license was granted and placed on probation due to unpaid child support.  Docket number RE-2023-070

DUNNING, JUDD, and DWG CAPITAL GROUP, unlicensed, Los Angeles, California.  On August 14, 2023, the Division issued a citation to Mr. Dunning and to DWG Capital Group for two advertisements offering a property for sale in Utah.  Mr. Dunning and DWG Capital Group are not licensed in Utah.  The citation assessed a fine in the amount of $1,000.  Citation # DREC-23-9, Case No. RE-22-138175.

ELMER, CRISSY, sales agent, Sandy, Utah.  In an order dated November 3, 2023, Ms. Elmer’s license was granted and placed on probation for the initial licensing period due to criminal history.  Docket number RE-2023-089

FLANDERS, PHILIP F., sales agent, Centerville, Utah.  In a stipulated order dated September 20, 2023, Mr. Flanders admits that he represented a buyer in making multiple offers to purchase real property without first obtaining a written agency agreement, in violation of Utah administrative rules.  Mr. Flanders agreed to pay a civil penalty of $4,000 and to complete three hours of continuing education in addition to the continuing education required for his next license renewal.  Docket number RE-2023-5017 and Division case number RE-20-119290

FLORES, FLORAIME LOPEZ, sales agent, West Jordan, Utah.  In an order dated November 9, 2023, Ms. Flores’s license was granted and placed on probation for the initial licensing period due to criminal history.  Docket number RE-2023-092

GOLDSBERRY, AMBER, sales agent, Willard, Utah.  On December 1, 2023, the Division issued a citation to Ms. Goldsberry for advertising on social media without identifying the name of the real estate brokerage with which she is affiliated, in violation of Utah law and administrative rules.  The citation assessed a fine in the amount of $500.  Docket No. RE-2023-101

ISAKSEN, KARI, principal broker, St. George, Utah.  On or about October, 2023, the Division issued a citation to Ms. Isaksen for failing to respond within ten days to a request by the Division for documents related to a real estate transaction.  The citation assessed a fine in the amount of $1,000.  Docket number RE-2023-091

JOHNSON, JAMES, sales agent, South Jordan, Utah.  In an order dated September 8, 2023, Mr. Johnson’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-071

KNIGHT, DACE TEICHERT, sales agent, Heber City, Utah.  In an order dated October 13, 2023, Mr. Knight’s license was reinstated and, due to criminal conduct occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-084

LENZ, RAYMOND CHESTER, sales agent, Washington, Utah.  In an order dated October 10, 2023, Mr. Lenz’s license was granted and placed on probation for the initial licensing period due to criminal history.  Docket number RE-2023-082

NAVARRO, RANDY, sales agent, Brigham City, Utah.  In an order dated September 1, 2023, Mr. Navarro’s license was renewed and, due to his criminal conduct occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-066

NEELEMAN, MARK, sales agent, Sandy, Utah.  In an order dated September 8, 2023, Mr. Neeleman’s license was reinstated and, due to a pending criminal matter he disclosed that occurred during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-069

OCKEY, CATHERINE R, sales agent, Riverton, Utah.  In an order dated September 29, 2023, Ms. Ockey’s application for licensure was denied due to her criminal history.  Docket number RE-2023-078

PARRA, DAVID, sales agent, Sandy, Utah.  In an order dated November 3, 2023, Mr. Parra’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-087

PLANT, BRANDON R, sales agent, Sandy, Utah.  In an order dated September 1, 2023, Mr. Plant’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-065

POLOKOFF, ZACHARY JAMES, sales agent, Ogden, Utah.  In an order dated September 6, 2023, Mr. Polokoff’s license was granted and placed on probation for the initial licensing period due to criminal history.  Docket number RE-2023-068

PRINCE, JOHN DOUGLAS, sales agent, Layton, Utah.  In a stipulated order dated September 20, 2023, Mr. Prince admits that he violated Utah administrative rules.  Mr. Prince had agreed to represent as a limited agent both the buyer and seller in a property transaction.  The seller was an entity owned and operated by Mr. Prince.  However, Utah administrative code prohibits a licensee from acting as a limited agent in a transaction in which the licensee is either buyer or seller, or if the licensee has an ownership interest or is an officer, director, partner, manager, or stockholder of an entity that is a principal in a transaction.  An aggravating factor considered by the Real Estate Commission is that Mr. Prince has a record of prior discipline with the Real Estate Commission.  Mr. Prince agreed to pay a civil penalty of $5,000 and to complete six hours of continuing education in addition to the continuing education required for his next license renewal.  Docket number RE-2023-5022 and Division case number RE-19-113326

QUINTERO, MARCELO COVARRUBIAS, sales agent, Riverton, Utah.  In an order dated September 19, 2023, Mr. Quintero’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-074

REMINGTON, JEFFERSON, sales agent, Highland, Utah.  In an order dated September 6, 2023, Mr. Remington’s license was granted and placed on probation for the initial licensing period due to having entered into a plea in abeyance agreement in two criminal cases.  Docket number RE-2023-067

ROUNDY, SAMANTHA AUTUMN, sales agent, St. George, Utah.  In an order dated November 24, 2023, Ms. Roundy’s license was granted and placed on probation for six months due to a plea in abeyance agreement in a criminal matter.  Docket number RE-2023-096

RUSH, GEORGIA RENEE, sales agent, Kamas, Utah.  In an order dated October 6, 2023, Ms. Rush’s license was reinstated and, due to having been found in contempt in a civil court matter during the past licensing period, her license was placed on probation for one year.  Docket number RE-2023-081

STEVENS, DAWN, branch broker, Salt Lake City, Utah.  On December 22, 2022, the Division issued a citation to Ms. Stevens for electronic media advertising that did not include the name of the real estate brokerage with which Ms. Stevens is affiliated.  The citation assessed a fine in the amount of $500.  Citation # DREC-22-18, Case No. RE-22-135530

SWOLSKY, JULIUS, and GRAYSTONE CAPITAL ADVISORS, unlicensed, Newport Beach, California.   On December 19, 2022, the Division issued a citation to Mr. Swolsky and to Graystone Capital Advisors for two advertisements offering a property for sale in Utah.  Mr. Swolsky and Graystone Capital Advisors are not licensed in Utah.  The citation assessed a fine in the amount of $1,000.  Citation # DREC-22-12, Case No. RE-22-135859

THORNLEY, KADEN JAMES, sales agent, Layton, Utah.  In an order dated October 6, 2023, Mr. Thornley’s license was renewed and, due to multiple criminal convictions occurring during the past licensing period, his license was suspended for three months.  Following the suspension, his license will be on probation for the remainder of the renewal period.  Docket number RE-2023-079

ZEVALLOS, RAY LOO, sales agent, South Jordan, Utah.  In an order dated September 8, 2023, Mr. Zevallos’s license was renewed and, due to a criminal matter occurring during the past licensing period, his license was placed on probation for the renewal period.  Docket number RE-2023-041

Due on Sale Clause - What Are Your Duties?

Due to high interest rates, there has been a significant increase in seller financing transactions. As a licensed professional, you should be aware of your duties and obligations to the parties in a transaction regarding a due-on-sale clause.

R162-2f-401a. Affirmative Duties Required of Licensed Individuals. An individual licensee shall:

(6) before the execution of a binding purchase or lease agreement, disclose in writing to clients, agents for other parties, and unrepresented parties:

(d)(i) the existence or possible existence of a due-on-sale clause in an underlying encumbrance on real property; and

(ii) the potential consequences of selling or purchasing a property without obtaining the authorization of the holder of an underlying encumbrance.

A due-on-sale clause, also known as an “acceleration or alienation clause” is a provision commonly attached to a mortgage. This allows the lender to call the loan due, in full, if the securing property is sold or transferred to a new owner.

Lenders include the due-on-sale clause provision to protect their financial interests. A change of ownership may make substantial modifications to the risk profile of the loan. Lenders can find out about a change of ownership in any number of ways: receiving the tax notice that is not in the borrower’s name, a change of property insurance providers, checking the property abstract with the county recorder’s office, when a seller changes the contact individual or the address where the monthly mortgage invoices are to be mailed, to name a few.

In today's market, lenders have a huge incentive to call the mortgage due upon a sale, and are indeed calling notes due, something the mortgage industry has not seen for decades. Interest rates have more than doubled in the past few years, and a lender now has a great incentive to invoke a due-on-sale clause to close out a low-interest rate loan.

Imagine the following scenario: a seller needs to sell and they enter into a seller financing purchase agreement because they have an interest rate of 2.8% that allows the buyer to “afford” the property. The buyer puts money down, takes possession and updates the insurance provider with the lender. The lender is notified of the change in insurance and realizes that the property has been sold. The lender calls the loan due. The buyer can’t qualify for the purchase at current rates. The seller has already invested the down payment received from the buyer into a new property. Who will be harmed when the lender calls the loan due? Both buyer and seller may be harmed. Buyer most likely used their available funds for the down payment and does not have cash available to pay off seller’s existing mortgage. Buyer may not qualify to obtain a new loan because current mortgage rates put the property out of buyer’s price range. Seller probably does not have funds available to pay off the note that is now due and faces foreclosure. Facing foreclosure, seller may feel pressured to foreclose against buyer.  As the agent involved, did you adequately inform (notify) the parties of this possibility? How did you clearly and unambiguously document your notification with your client? What now is your liability?

Most buyers and sellers are unaware of the due-on-sale clause and its ramifications. Ensure that you are protecting your clients and yourself by diligently informing them with adequate documentation of the probable risks associated with their financing decision and encourage the parties to research the due-on-sale issue thoroughly before entering into these types of transactions so they can make a well-informed decision.

Recently the EPA has been sending notices to Utah real estate brokerages of imminent inspections for compliance with the lead disclosure rules, Section 1018 of Title X. These notices were usually received two weeks before the audit and required a list of all residential transactions over the last three years, including housing type and usage. The EPA inspections can include up to 10 individual contracts and identified violations can lead to penalties up to $19,507 per violation.

Seller Responsibilities

Sellers and landlords must disclose known lead-based paint and hazards and provide available reports to buyers or renters. Sellers and landlords must give buyers and renters the pamphlet: Protect Your Family From Lead in Your Home. Home buyers can get 10 days to conduct a lead-based paint inspection or risk assessment. The two parties have flexibility to negotiate key terms of the evaluation. Sales contracts and leasing agreements must include certain required language regarding notification and disclosure (Lead Warning Statement). These leasing agreements and sales contracts must be retained for three years.

Agent Responsibilities

What are your responsibilities as an agent?

Agents must ensure that sellers and landlords are aware of their obligations:

• Proper disclosures, signatures, and warning pamphlet;
• Opportunity to conduct appropriate inspections;
• Lease and sales contracts contain proper language and signatures (Lead Warning Statement); and
• Retain documentation of disclosure, warning pamphlet, and lead-based paint records for at least three years.

Forms for Compliance

Two forms to keep you and your clients safe:

• Disclosure & Acknowledgement Regarding Lead-Based Paint
  • Fulfills obligations of disclosure and notice;
  • Verifies receipt of disclosures, notices, and lead pamphlet; and
  • Option to agree, modify, or waive 10-day inspection/risk assessment.
• Lead-Based Paint Addendum to the REPC
  • Agreement about inspection/risk assessment and right to cancel.

Failure to Comply

What if the seller or landlord fails to comply?

• The agent is responsible if the seller or lessor fails to comply.
• However, an agent is not responsible for information withheld by the seller or lessor.

What if seller and agent fail to comply?

• Failure to comply does NOT invalidate leasing and sales contracts.
• But, there are very steep penalties:
  • Possibility of triple damages, potential civil and criminal penalties.
  • 35.88 Disclosure requirements for sellers and lessors.

(b) If any of the disclosure activities identified in paragraph (a) of this section occurs after the purchaser or lessee has provided an offer to purchase or lease the housing, the seller or lessor shall complete the required disclosure activities prior to accepting the purchaser’s or lessee’s offer and will allow the purchaser or lessee an opportunity to review the information and possibly amend the offer. 24 CFR 35.88

The Association of Appraiser Regulatory Officials (AARO) Conference was held last October in Salt Lake City. The weekend was packed with valuable information and networking opportunities. The following are interesting takeaways from the Conference:

Utah is ranked 6^th in the top 10 States with the highest number of appraisals per appraiser.      

Third-party inspection reports are being evaluated similarly to appraisal LQC reports according to Lyle Radke of Fannie Mae.

The Federal Housing Financial Agency has released GSE appraisal data. Federal Agencies have access to actual data while others only have access to released aggregate.

Freddie Mac reports that the new URAR and updated UAD will roll out in 2025. The new forms will feature a summary page with a synopsis of key information and actions to be taken into consideration by the lender. The Sales Comparison Grid has the grid broken into sections and has been updated to include other properties analyzed, but not used.

The new 7-Hour National USPAP Course has been released.

1. the new course is built around the most frequently & recently asked questions and topics;
2. it will teach students how to use the USPAP publication to answer specific questions; and,
3. it contains 2.5 hours on bias and discrimination as it relates to USPAP.

The topic of Fair Housing and Appraisal Bias came up again and again throughout the AARO conference.

Freddie Mac alerted us to its use of text detection within appraisal quality monitoring for unacceptable words and phrases that contain discriminatory language, subjective language, or code words.

Freddie Mac advised us to use alternative words and phrases to report factual information rather than subjective language. Instead of using the word “desirable”, discuss specific facts that may appeal to buyers.  Instead of using “family-friendly,” report the specific distance from schools, walking trails or parks, etc.

Fannie Mae alerted us to its use of text recognition technology to scan appraisals for identification of prohibited and subjective language, then validates the results with human reviews.

Fannie Mae’s selling guide cautions us against using factors that are not appraisal factors, such as racial or ethnic composition, religion, or sexual orientation, which must not be considered in the valuation process. Fannie Mae recommends only including information in the report that is used to develop the opinion of value or is required by law or policy.

Fannie Mae also alerted us about the use of image recognition powered by machine learning to assess appraisal quality. This has a direct influence on the verification of condition and quality reporting within the appraisal.  Aerial imagery allows the identification of roof complexity, condition, and quality of external influences. Condition reporting of the subject and comparables is matched alongside this data for consistency.

The Appraisal Foundation gave an update on the 2026 Criteria requiring QE & CE on Valuation Bias and Fair Housing Laws and Regulations:

Effective January 1, 2026, appraisers must complete a course that meets the content requirements of the Valuation Bias and Fair Housing Laws and Regulations Outline, every two calendar years.

a) The first time the appraiser completes the course, the course length must be 7 hours.  If an appraiser completed a 7-hour course and 1-hour exam as part of their qualifying education, they have met this requirement.

b) Every two calendar years thereafter, the course length must be at least 4-hours.

The completed course must meet the course content requirements of the Valuation Bias and Fair Housing Laws and Regulations course content outline.

There is an increase in qualifying education requirements for trainee and licensed classification (a total of 8 hours for each classification).

Updated course titles: 7-hour National USPAP Continuing Education Course and Instructor Recertification Course.

The USPAP advisory council discussed a frequently asked question regarding appraisers being asked to consider nightly rentals within the single-family comparable rent schedule. This is a question that has been brought to the Division as well.  The Appraisal Standards Board is considering offering guidance and Freddie Mac is reportedly working on a practical guide on this issue. The USPAP Advisory Council suggests remembering that short-term potential income is defined by the IRS as business income. A lease is passive income. Therefore, nightly rent is not equal to or similar to market monthly rent. Additional questions to ask yourself when considering an assignment of nightly rental income is the type of forms requested, the scope of work, highest and best use, and your competency with the assignment as well as the possible conflict of valuing future potential income.

Another hot topic throughout the conference was barriers to enter the appraisal profession. The Appraisal Subcommittee urged States to commit to proactively evaluate their state requirements that pose additional or unnecessary barriers to entry.

To promote transparency and public awareness the Property Appraisal and Valuation Equity (PAVE) Task Force published online information that identifies where State requirements exceed minimum AQB criteria and may be burdensome. Utah currently is within guidelines for AQB minimum qualifying education. Utah currently requires more than the AQB for minimum months’ experience and has additional exclusions or limits for allowable experience. Utah currently also limits the examination validity period to fewer than two years and exceeds the requirements for trainee appraiser as a result of the 6-hour Supervisor Trainee Course (www.pave.hud.gov/reducebarriers). The Utah Appraiser Board has a proposed rule to reduce the 6-hour course to the federal minimum requirement of 4 hours.

The Appraisal Institute reported on the Federal Regulatory PAVE Task Force Action Plan which has 5 categories of commitments:

Category 1:   is to strengthen guardrails against discrimination in all stages of residential valuation.

Category 2:   is to enhance fair housing/fair lending enforcement and driving accountability in the appraisal industry.

Category 3:   is to build a diverse, well-trained, and accessible appraiser workforce.

Category 4:   empowers consumers to take action against bias.

Category 5:   will give researchers and enforcement agencies better data to study and monitor valuation bias.

Lastly, The Appraisal Foundation provided updates on the status of Practical Applications of Real Estate Appraisal (PAREA):

Utah has fully adopted PAREA.

Appraisal Institute’s Licensed Residential PAREA has been approved by AQB.

Eight providers are actively developing PAREA Programs:

Appraisal Institute launched Licensed Residential and Certified Residential            PAREA programs this past September.

OPTEON is actively developing their PAREA course module.

McKissock hopes to launch their PAREA module in 2024.

Foreclosure Rescue is a set of strategies and resources designed to help homeowners at risk of losing their homes due to mortgage delinquency. There are legitimate options where a homeowner can cure a delinquency such as:

1.  Repayment Plan: You may be able to get an agreement to resume making your regular monthly payments, in addition to paying a portion of the past due payments each month until you are caught up.
   
   
2. Loan Modification: This involves adjusting the terms of your mortgage to make your mortgage payment more affordable. Lenders may agree to lower the interest rate, extend the loan term, or even reduce the principal balance.
   
   
3. Reinstatement: Your lender may be willing to discuss accepting the total amount owed to them in a lump sum by a specific date and will often be combined with a forbearance.
   
   
4. Forbearance: A forbearance agreement allows a homeowner to temporarily halt mortgage payments or make reduced payments for a specific period while they recover from financial hardship.
   
   
5. Claim Advance: If your mortgage is insured, you may qualify for an interest-free loan from your mortgage guarantor to bring your account current. The repayment of this loan may be delayed for several years.
   
   
6. Deed in Lieu of Foreclosure: Your lender may agree to accept your voluntary transfer of ownership of the property to the lender to avoid the foreclosure process.
   
   
7. Government Programs: Various federal and state government programs can help homeowners find solutions. The Home Affordable Modification Program and the Hardest Hit Fund can aid homeowners facing foreclosure.

A Foreclosure Rescue Scheme is a type of fraud that takes advantage of homeowners who have fallen behind on their mortgage payments and may include:

1. Telling a homeowner they can stay in their home and rent back from the “investor,” and the “investor” will bring the mortgage current at closing.
   
   
2. Convincing a homeowner to transfer title of the home to the “investor” as collateral. The “investor” promises that the homeowner can continue to live in the home for a few hundred dollars more than their original mortgage payment and repurchase it later, at market value, with new financing.
   
   
3. Asking a homeowner to provide seller financing for a loan on behalf of the “investor” until they are able to repurchase the home or the “investor” is able to pay off the loan amount. The seller finance loan is typically for the amount still owing on the mortgage, which may be significantly lower than the property’s market value. The “investor” will be responsible for making the homeowner’s mortgage payments.
   
   
4. At closing:
   a. The homeowner transfers title to the “investor” or “investor’s company.”
   b. The homeowner’s original mortgage stays in their name, but they no longer hold title to their home.
   c. The “investor” sells the home, pockets the equity, and runs.
   d. The “investor” defaults on the loan.
   e. The homeowner is evicted and loses the house and all equity.

The Division is seeing more foreclosure rescue schemes by licensees each year. This a big concern because the unsophisticated and financially distressed homeowner meets a seemingly knowledgeable real estate licensee, and trusts that they know a way to help them keep their home. Unfortunately, what is occurring, is that the licensee is walking away with 10’s, and sometimes 100’s of thousands of dollars of equity in the home.
These transactions can occur in as little as one day where the licensee takes the distressed homeowner to a title company, has them sign over the title to the home, and the licensee brings current the mortgage default amount. Oftentimes, these are verbal agreements that occur quickly, with no written documents and no disclosures. We sometimes see written offers, but they seldom include all the necessary paperwork expected in a legitimate transaction.

Following are the Division statutes regulating Foreclosure Rescue:

61-2f-102 Definitions.

(16) “Foreclosure rescue” means, for compensation or with the expectation of receiving valuable consideration, to:

(a) engage, or offer to engage, in an act that:

(i) the person represents will assist a borrower in preventing a foreclosure; and
(ii) relates to a transaction involving the transfer of title to residential real property; or

(b) as an employee or agent of another person:

(i) solicit, or offer that the other person will engage in an act described in Subsection (16)(a); or
(ii) negotiate terms in relationship to an act described in Subsection (16)(a).

61-2f-401 Grounds for disciplinary action.

The following acts are unlawful and grounds for disciplinary action for a person licensed or required to be licensed under this chapter:

(22)

(a) engaging in an act of loan modification assistance that requires licensure as a mortgage officer under Chapter 2c, Utah Residential Mortgage Practices and Licensing Act, without being licensed under that chapter;

(b) engaging in an act of foreclosure rescue without entering into a written agreement specifying what one or more acts of foreclosure rescue will be completed;

(c) inducing a person who is at risk of foreclosure to hire the licensee to engage in an act of foreclosure rescue by:

(i) suggesting to the person that the licensee has a special relationship with the person’s lender or loan servicer; or
(ii) falsely representing or advertising that the licensee is acting on the behalf of:

(A) a government agency
(B) the person’s lender or loan servicer; or
(C) a nonprofit or charitable institution; or

(d) recommending or participating in a foreclosure rescue that requires a person to:

(i) transfer title to real estate to the licensee or to a third party with whom the licensee has a business relationship or financial interest;
(ii) make a mortgage payment to a person other than the person’s loan servicer; or
(iii) refrain from contacting the person’s

(A) lender;
(B) loan servicer;
(C) attorney;
(D) credit counselor; or
(E) housing counselor

If you come across a distressed homeowner who is at risk of losing their home through foreclosure, please assist them using your expertise by giving them legitimate ways to cure their mortgage delinquency. If they are unable to cure their delinquency through legitimate measures, ask them if you could list their home and help them move forward without compromising the equity in their home.

Division representatives attended the Association of Real Estate License Law Officials (ARELLO) Annual Conference this fall. Key topics discussed this year included:

• Transaction Coordinators
• Broker Supervision
• Military Spouse Exemption
• Wholesaling
• Fair Housing
• Artificial Intelligence
• Land Sale Scams

The Division continues to monitor and discuss how Utah might address these issues and will continue to engage with the Real Estate Commission, the real estate industry, and nationally with other states.

In late October, with beautiful fall weather, the annual IDW workshop was convened at the Double Tree Hotel in Park City.  The morning session of the two-day event was taken by Division representatives (Jonathan Stewart, Director; Mark Fagergren, Licensing & Education Director; and Kadee Wright, Chief Investigator).

Director Stewart provided insight on legislation and administrative rules which impact the Real Estate, Mortgage and Appraisal professions. He also discussed proposed administrative rule and statutory changes being considered.

Mark Fagergren discussed the revised 2024 Mandatory Course Outlines. He then introduced some common themes that occur when real estate brokers make fundamentally poor decisions leading to disciplinary actions or license revocation.

Mr. Fagergren indicated that a PAREA course module has been approved by the Appraisal Qualifications Board (AQB), which will now allow appraiser candidates to complete required appraisal experience in a course setting as an alternative to the supervisory/trainee method, which historically has been the exclusive means for individuals to obtain necessary appraisal experience.

Finally, Mr. Fagergren discussed bias & fair housing concerns impacting both the appraisal and real estate industries and efforts to eliminate any discriminatory misconduct.

Kadee Wright presented a number of disciplinary actions from the past year in each of the industries the Division regulates. She made recommendations and advanced preventative measures that should or could be taken to avoid similar misfortune.

The remaining time was well utilized by national real estate technology expert Betsy Sabatini Coyne. Ms. Sabatini Coyne introduced technological tools that will “amp-up” any instructor’s presentations. She possesses and shared her deep knowledge of technological tools that can make any instructor’s training more effective, more engaging, and more enjoyable. Ms. Sabatini Coyne provided individual assistance to instructors with varying degrees of skill and knowledge of the technological tools she was presenting.  She displayed a wonderful ability to simplify and explain complicated processes.

Ms. Sabatini Coyne demonstrated the use of Mentimeter, Poll Everywhere, Google Forms, Flippity, Canva, Zoom Team Chat, Zoom Polling, Zoom Quizzes, and referenced the utilization of free picture access/editing by Pixabay and Unsplash. She was highly successful in condensing and presenting complex material that could require a week-long course into 10 hours of training.

Our thanks to both Betsy Sabatini Coyne for her outstanding IDW training and demonstrations and to the 80+ Utah instructor attendees for an informative, entertaining, and successful two-day event.