What liability does a loan originator have if a loan does not close on the agreed date, due to no fault of the borrower?

In the context of Utah mortgage law, a loan originator generally does not hold monetary liability if a loan fails to close on the agreed date due to reasons beyond the borrower’s control. This principle helps to protect loan originators from being held accountable for external factors that can affect the closing timeline, such as issues with the appraisal, title problems, or unexpected documentation requirements.

This liability framework aims to create a fair environment in lending where the borrower understands that certain complications can arise that are not attributable to the actions of the loan originator. Therefore, it is important for both parties to understand their responsibilities and the factors that can impact the closing process. The loan originator's obligation primarily involves facilitating the loan process and ensuring compliance with relevant laws, not ensuring a specific closing date is met.