August 24, 2019

SB 16-014: State Mortgage Loan Originator Laws Amended to Conform to Federal Regulations

On January 13, 2016, Sen. Chris Holbert and Rep. Angela Williams introduced Senate Bill 16-014Concerning the Alignment of State Mortgage Originator Disclosures With Recent Changes in Federal Law. The bill has passed through both houses with amendments and has been sent to the governor.

This bill looks to repeal selected provisions of the Colorado “Mortgage Loan Originator Licensing and Mortgage Company Registration Act” which governs and sets deadlines for disclosures of certain costs and fees. The bill will replace those provisions with cross references to applicable requirements in the federal “Truth in lending Act” and “Real Estate Settlement Procedures Act of 1974.”

First, the bill proposes to repeal Section (1)(a) of C.R.S. § 12-61-914 Written Disclosure of Fees and Costs – Contents – Limits on Fees – Lock-in Agreement Terms – Rules , which would eliminate requirements under Colorado law, and add language directing mortgage loan originator’s requirements to federal law. Specifically, the proposal creates a cross-reference to the federal Truth and Lending Act, the federal Real Estate Settlement Procedures Act of 1974, the federal Equal Opportunity Act, Title V, the federal Home Mortgage Disclosures Act of 1975, the Federal Trade Commission Act of 1914, the federal Telemarketing and Consumer Fraud and Abuse Prevention Act, and various federal statutes.

Second, the bill proposes to repeal Section (1) of C.R.S. 38-40-102 Disclosure of Costs – Statement of Terms of Indebtedness.

Mark Proust is a 2016 J.D. candidate at the University of Denver Sturm College of Law.

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