Colorado Adopts MLO and Mortgage Company Provisions
The Colorado Department of Regulatory Agencies, Division of Real Estate, has adopted provisions regarding mortgage loan originators and mortgage companies. Amendments include updates and repeals to definitions and professional standards under 4 CCR 725-3. These amendments are effective as of March 17, 2017.
The updated definitions in Chapter 1 of the regulation read as follows:
Chapter 1: Definitions
1.4 Advertisement: Has the same meaning as set forth in 12 C.F.R. §1026.2(a)(2) as incorporated by reference in Board Rule 1.36.
1.6 Business Day: Has the same meaning as set forth in 12 C.F.R. §1026.2(a)(6) and 12 C.F.R. 1024.2(b) as incorporated by reference in Board Rule 1.36.
1.9 Creditor: Has the same meaning as set forth in 12 C.F.R. §1026.2(a)(17) as incorporated by reference in Board Rule 1.36.
1.11 Finance Charge: has the same meaning as set forth in 12 C.F.R. §1026.4(a) as incorporated by reference in Board Rule 1.36.
1.13 Good Faith Estimate Disclosure: Is the same disclosure form established in the Real Estate Settlement Procedures Act, specific to Regulation X, Appendix C as incorporated by reference in Board Rule 1.36.
1.29 Application: Has the same meaning as set forth in 12 C.F.R. §1026.2(a)(3) and 12 C.F.R 1024.2(b) as incorporated by reference in Board Rule 1.36.
1.34 Truth-in-Lending Disclosure: Is the same disclosure form established by the Truth in Lending Act, specific to Regulation Z, Appendices H-2, H-3, H-4(a), (b), (c) and (d) as incorporated by reference in Board Rule 1.36.
1.38 Colorado Lock-in Disclosure: means the Colorado Lock-in Disclosure form created by the Board of Mortgage Loan Originators. This form is to be used for any loan application or transaction that is not under the authority of the TILA-RESPA Integrated Disclosure Rule as defined and incorporated by reference in Board Rule
1.36. This disclosure may be found on the Division of Real Estate’s Website. A mortgage loan originator may use an alternate form if the alternate form includes all information
In addition, the definition of the MLO Compensation Rule, previously found in Section 1.37, has been repealed.
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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