On January 25, 2008, the Colorado Division of Real Estate adopted an emergency rule, entitled "Mortgage Broker Disclosures," to clarify the disclosure requirements under § 12-61-914 of the Colorado Revised Statutes.  Section 12-61-914 requires mortgage brokers, within three (3) business days after receipt of a loan application or any moneys from a borrower, to disclose specific details of a loan transaction to the borrower.  Some of these details include, but are not limited to: the annual percentage rate; finance charge; amount financed; total amount of all payments; third party costs; terms of a lock-in agreement; transfer of documents;  and that moneys paid by the borrower are held in a trust account.  The emergency rule was adopted based on findings that uncertainty exists in the mortgage industry regarding how and when to provide these details.

Among the many items addressed in the emergency rule are changes made to the Division's model Colorado Lock-In Disclosure Form.  Please note that DocMagic, Inc.'s Compliance Department has implemented revisions to the model Form (COLIDF.DSC) to comply with this rule.  If you have any questions concerning this Form, please contact the Compliance Department.

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