How must a Utah mortgage company handle trust accounts or borrower funds?

• A. Commingling funds is acceptable if fees are low
• B. Maintain accurate accounting, segregation of funds, and compliance with state trust/escrow rules
• C. Do not maintain separate trust accounts
• D. Use third-party without oversight

Answer: (B)

Handling borrower funds in Utah hinges on keeping trust funds separate from the lender’s own money and maintaining precise, ongoing records in line with state trust and escrow requirements. This separation protects borrowers’ money, ensures funds are used as authorized, and keeps everything auditable through regular reconciliations and accurate accounting. Commingling funds is not allowed, there must be separate trust accounts, and funds must be managed under the state rules. Using a third party without proper oversight wouldn’t satisfy regulatory expectations, since the custodian still operates under established fiduciary and reporting standards.