Colorado Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Reverse Mortgages / Colo. Rev. Stat. Ann. §11-38-111 | Borrower Counseling | A reverse mortgage loan may not be made by a lender unless the loan applicant attests, in writing, that the applicant has been advised by the lender to obtain independent counseling regarding the advisability of such applicant's entering into a reverse mortgage transaction and applicant has either obtained or waived such counseling in writing. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3.5-103(1) | Borrower Interest Worksheet | Within 1 year after making a covered loan, a lender or assignee holding or serving a covered loan is prohibited from refinancing such loan to the same borrower into another covered loan unless the refinancing is in the borrower's interest. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3.5-103(1) | Consumer Caution Notice | A lender may not make a covered loan unless the lender or mortgage broker has provided a consumer caution notice, in writing to the borrower within a reasonable period of time after determining that the loan would result in a covered loan, but no later than 3 business days prior to the consummation of the loan transaction |
| Real Estate / Colo. Rev. Stat. Ann. §12-61-905.5(1) | Disclosure of Potential Conflict of Interest | A mortgage loan originator acting for more than 1 party in a transaction must disclose any actual or potential conflict of interest. Additionally, the mortgage loan originator must disclose to all parties any fiduciary obligation or other legal obligation of the mortgage loan originator to any party. |
| Real Estate / CO Rev Stat § 12-61-912 | Dual Status Disclosure | The Colorado Dual Status Disclosure must be completed and disclosed within 3 business days after receipt of a loan application. Required anytime an individual operates with a dual status license as a real estate broker & a mortgage loan originator. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3-106(1) | Effect of Untimely Payments Disclosure | With respect to a supervised loan, other than a revolving credit account, if a lender credits payments made after the due date as of the date of receipt rather than the date payment was due, the lender must clearly and conspicuously disclose to the borrower at or before the time that credit is extended the effect of untimely payments. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-1-301(26) | First Lien Refinance Notice | If a residential purchase money, first mortgage loan or any other loan with an annual percentage rate of 12% or less is refinanced, the lender must disclose to the borrower that the refinanced loan creates a lien against the real property and that the limits as to attorney fees set under the UCCC do not apply. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3.5-102 | Loan Product Choice | A lender may not include a prepayment penalty in a covered loan unless the lender offers the borrower the option of choosing a loan product without a prepayment penalty. A lender is deemed to have complied with this requirement if the borrower receives and executes a Loan Product Choice disclosure. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3-105(1) | Notice to Cosigner | Must be provided before or at the same time as the agreement is signed and may either be set forth in the borrower's agreement of obligation or in a separate writing. A person entitled to the Notice to Cosigner must also be given a copy of any writing setting forth the terms of the borrower's agreement and of any separate agreement of obligation signed by the person entitled to the notice. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-2-202 | Optional Insurance Disclosure (Optional Form) | A lender may contract for an additional charge in connection with a supervised loan with respect to life, accident, or health insurance, if: (1) the insurance coverage is not a factor in the approval of the extension of credit and this fact is clearly disclosed in writing to the borrower; and (2) in order to obtain the insurance in connection with the extension of credit, the borrower gives specific affirmative written indication of the borrower's desire to obtain insurance after receiving a written disclosure of the cost of insurance. |
| Real Estate / CO Rev Stat § 12-61-914 | Rate Lock Agreement | This form is to be used for any loan application or transaction that is exempt from the TILA-RESPA Integrated Disclosure rule. A mortgage loan originator may use an alternate form if the alternate form includes all information required on the Colorado Lock-in Disclosure form, as determined by the Board. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-4-109 | Right to Choose Insurance Provider Disclosure | If a creditor requires insurance, upon notice to the creditor the borrower must have the option of providing the required insurance through an existing policy of insurance owned or controlled by the borrower or through a policy to be obtained and paid for by the borrower. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3-208 | Right to Refinance Balloon Loan | With respect to a supervised loan other than a revolving credit account, containing a balloon payment, the borrower has the right to refinance the amount of that payment at the time it is due. The lender must disclose this right in writing to the borrower at the time the transaction is entered into. These requirements do not apply to the extent that the payment schedule is adjusted to the seasonal or irregular income of the borrower. |
| Real Estate / CO Rev Stat § 12-61-904.5 | Tangible Net Benefit Disclosure | At the time of completing a loan application a mortgage loan originator must provide a tangible net benefit disclosure to the borrower. The tangible net benefit disclosure must also be provided prior to a borrower signing loan closing documents if the benefit has changed. Tangible net benefit disclosures must be signed by both the mortgage loan originator and the borrowers. |
| Reverse Mortgages / Colo. Rev. Stat. Ann. §11-38-109 | Total Loan Cost Rate Disclosure | Any lender making reverse mortgage loans must provide to a borrower, prior to closing on such a loan, a written statement of the projected total loan cost rate for all reverse mortgage loans except for reverse mortgage loans subject to the federal Truth in Lending Act, as amended, total annual loan cost disclosure requirements. |