House adopts lender 'single point of contact' requirement in foreclosure process

The Utah House passed third-substitute House Bill 164 on Feb. 28, adopting measures aimed at clarifying the nonjudicial foreclosure process. Representative Levar Christiansen, sponsor of HB 164, said the substitute reflects two years of work and lender input and requires lenders to identify an authorized representative to communicate with homeowners during the statutorily provided 90-day period.

"It just requires the lenders an element of good faith during the 90-day foreclosure period to identify who their authorized representative is," Christiansen said, describing the change as a way to provide homeowners with a clear person to contact during the critical period.

The bill also clarifies that if a lender chooses to postpone a trustee sale to work with a homeowner, the lender will not be required to restart the 90-day process — addressing prior ambiguity that some foreclosure attorneys had described as a de facto restart. Sponsor and supporters said the language protects homeowners by ensuring communication while preserving lenders' contractual rights.

Floor debate acknowledged the bill's long evolution and collaboration with financial institutions and foreclosure attorneys. Representative Hutchings and others expressed support for the single-point-of-contact approach as a consumer-protection measure. Representative Butterfield asked whether the change creates additional duties that could invite litigation; Christiansen replied that the bill largely codifies an implicit duty of good faith and reduces gray areas that previously impeded communication.

Third-substitute HB 164 passed the House by a wide margin (68–1) and will be forwarded to the Senate for further consideration.