Utah Real Estate Division Cracking Down

April 13th, 2008 Categories: Real Estate News

Utah Division Of Real Estate’s

Licensing Actions and Disciplinary Sanctions

Incoming Director of Real Estate Mark B. Steinagel is quoted “My vision for the Division of Real Estate is to continue making things easier for the good guys and harder for the bad guys”.

The Utah Legislature has been adding new teeth to its bite on fraudulent activity in the Real Estate World. Up until a few years ago loan officers were not regulated. Now Mortgage Brokers, Loan Officers, Appraisers and Real Estate Licensee are governed by the Utah Division of Real Estate. The fact that all three of these licensees are handled by one department makes things a little easier. It is tough to work across different divisions.

Some new legislation that has been enacted is HB 346, SB 134, HB 128 and they are adding new investigators.

Below are a couple of Disciplinary Sanctions from the Utah. I took out the names, I am not interested in the who as much as I am the what. I would like to inform the public of some of the things that were being done during the boom. I am always amazed at the audacity of some people.

Sales Agent, Lehi, UT. Agreed to pay a $40,000.00 civil penalty and the revocation of his sales agent license for a five year period in an October 17, 2007 Order. Sales Agent admits to using the identity of another individual for purchasing a home for his personal residence, falsely indicating on settlement documents that the home would be “owner occupied” and acting as a real estate agent in three separate transactions using that same individual’s information on settlement documents. He forged signatures of that same individual on documents, obtained an appraisal for the purpose of inflating the price of the subject property to obtain money in excess of the sales price and acquired cash at the closing for his personal benefit. Sales Agent also diverted proceeds from loans to a company controlled by him at closing as part of the scheme to conceal the true terms from the lender. Case # RE35870.

A MORTGAGE COMPANY, Draper, UT. Agreed to the revocation of it’s mortgage license in the State of Utah and not to sell the company to any other individual or entity in a November 7, 2007 Order. A Mortgage Company admits to violating Utah Code Annotated Section 61-2c-301(1)(d)(l) in which the company submitted a fraudulent CPA letter, added different individuals temporarily to bank accounts to show they had sufficient funds to meet underwriting conditions, submitting false employment and income information, submitting loans to lenders stating that properties were “owner occupied” when they were investment properties and had never been occupied, and misrepresenting income on a personal loan. Case # 36257.

These are good reasons when interviewing an agent to check the State’s Web Site to see if they have any actions. http://realestate.utah.gov/

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