DocMagic's Compliance Department has replaced the Colorado Mortgage Broker Compensation Disclosure Form (COMBCDF.DSC) with the Colorado Mortgage Loan Originator Compensation Disclosure Form (COMLOCDF.DSC) as a result of Colorado 2009 House Bill 1085, amending the Mortgage Broker Licensing Act to conform to the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act).  Pursuant to HB 1085, which became effective on August 5, 2009, the Mortgage Broker Licensing Act has been re-named to the "Mortgage Loan Originator Licensing Act," ("Act") and the term, ""mortgage broker," replaced with "mortgage loan originator" throughout the Act.

Accordingly, the Colorado Division of Real Estate ("Division") has updated a number of its model disclosures, including creating a Colorado Mortgage Loan Originator Compensation Disclosure Form ("Disclosure") pursuant to amended Colo. Rev. Stat. Ann. §12-61-914.   This Disclosure will appear in both predisclosure and pre-closing loan packages as well as on the "Forms" list of DocMagic as an interim/processing disclosure when the Colorado loan package is broker - or lender - originated.  A mortgage loan originator must provide the Disclosure within three business days after receipt of a loan application or any moneys from a borrower (Colo. Rev. Stat. Ann. §12-61-914(1)).  In addition, if any of the loan originator's fees exceed the fees that were previously disclosed to the borrower, at least three business days prior to the signing of the loan closing documents, the loan originator must provide a clear written explanation of the fee and the reason for charging a fee exceeding that which was previously disclosed.  (Colo. Rev. Stat. Ann. §12-61-914(4)(a)(II))

Please note that DocMagic has updated the following Colorado disclosures to match the Division's model forms: (1) Dual Status Disclosure (CODSD.MSC); (2) Lock-In Disclosure (COLIDF.DSC); and (3) Tangible Net Benefit Disclosure (COTNBD.DSC).  The Division revised its model forms to essentially replace the term "mortgage broker" with "mortgage loan originator" to conform to the Act.

The above disclosures are required to be used, effective September 30, 2009.  For more details regarding each of the above-referenced disclosures, please refer to DocMagic's Colorado State Disclosure matrix.  If you have any questions concerning the subject matter of this article, please contact DocMagic's Compliance Department.