House backs mortgage-servicing bill after friendly amendments on payment timing

The Utah House on Jan. 31 approved Senate Bill 37, a mortgage lending and servicing measure placed on the governor’s priority list, after adopting a friendly amendment clarifying how mortgage payments are credited and when late charges apply.

Sponsor summary and aims: Representative Smithler said SB37 establishes a board to oversee servicing of mortgages, requires mortgage servicers who handle state loans to register with the agency, and sets up an administrative process to adjudicate servicing disputes. "What it does is it deals with mortgage lending and servicing of mortgages throughout the state of Utah," Smithler said on the floor.

Amendment and what it changes: During floor consideration lawmakers accepted a pink-sheet amendment that adds a new paragraph to describe when a mortgage payment is credited in a timely manner. Representative Olsen asked whether previously accrued late charges would be required to be included with a current payment; the sponsor responded that the bill accommodates a 15-day grace period before late charges apply.

Debate and support: Sponsors characterized the amendment as a friendly technical clarification arrived at after consultation with affected parties. Supporters, including members who had raised concerns in committee, said the clarification addresses real-world postal timing and billing disputes while preserving protections for homeowners.

Vote and next steps: After adoption of the amendment, the House passed SB37 by an announced vote of 67–0; the bill will be returned to the Senate for further action.