The following configuration changes will be made to the following Colorado disclosures, effective October 11, 2011:
CO Loan Product Choice (Cx2749): This disclosure is required under Colo. Rev. Stat. Ann. §5-3.5-102(1)(g)(III) to be given by a lender in connection with a covered loan. “Lender” is defined under Ibid. §5-3.5-101(3), as follows:
“’Lender’ means any individual or entity that originates one or more covered loans. The individual or entity to whom a covered loan is initially payable, either on the face of the note or contract or by agreement when there is no note or contract, shall be deemed to be the lender.” (emphasis added)
Since a broker cannot be an entity “to whom a covered loan is initially payable,” this disclosure will now only print when “Lender Is a Broker = No.”
CO Consumer Credit Transaction Disclosure (Cx3584):This disclosure is required under Colo. Rev. Stat. Ann. §§5-3-106 & 12-14.3-104.3(1) to be given by a creditor in connection with a consumer credit transaction. A “creditor” is defined under Colo. Rev. Stat. Ann. §5-1-301(17) as follows:
“`Creditor’ means the seller, lessor, lender, or person who makes or arranges a consumer credit transaction and to whom the transaction is initially payable . . .” (emphasis added)
Since a broker cannot be a person “to whom the transaction is initially payable,” Cx3584 will only print when “Lender Is a Broker = No.”
CO Disburser’s Notice (Cx3760): This notice is required to be recorded by the disburser “prior to the first disbursement” for a general mechanic’s lien, under Colo. Rev. Stat. Ann. §38-22-126(2). Currently, this document prints only in Initial Document Packages. Since it must be recorded before disbursement, which occurs after closings, the document can now print in both Initial and Closing Document Packages.
If you have any questions concerning these changes, please contact DocuTech Customer Support at 1-800-497-3584. To research the cited legal references, please click here.
October 7, 2011