Utah Personal Lending and Mortgages (PLM) Certification Practice Test

In Utah, any loan modification agreement between a licensee and a borrower is required to include a cancellation provision that spans three days. This is aimed at providing borrowers with a protective period in which they can reconsider their agreement after the modification has been signed. The three-day cancellation window allows borrowers the opportunity to review the terms of the modification, seek independent advice, or determine if it fits their financial situation properly.

The inclusion of this provision is a critical consumer protection measure, ensuring that borrowers have the ability to withdraw from the agreement without penalty within that specified time frame. This helps prevent potential distress caused by rushed decisions or changes in financial circumstances. Understanding this provision is vital for both borrowers and lenders to ensure compliance with state regulations governing loan modifications.

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