CO Commitment Agreement (Cx17939) – We will be providing a new commitment agreement pursuant to the provisions of Colo. Rev. Stat. Ann. §§ 12-61-915(2), 38-10-124, & 38-40-102(1) (West 2013). Of these three provisions, Section 38-10-124 is the more restrictive and requires (in part) the following:
“(2) . . . no debtor or creditor may file or maintain an action or a claim relating to a credit agreement involving a principal amount in excess of twenty-five thousand dollars unless the credit agreement is in writing and is signed by the party against whom enforcement is sought.”
A “credit agreement” includes a loan commitment (see Ibid. § 38-10-124[a][I]). In order to help clients enforce the terms of their loan commitments with their borrowers, we will be providing Cx17939 in Initial Disclosure packages when Field 38761 “Mortgage Loan Commitment” equals “Yes.”
CO Consumer Credit Insurance Disclosure (Cx17940) – This document is due to the provisions of Colo. Rev. Stat. Ann. §§ 5-4-109 & 10-10-113 (West 2013), the latter of which states the following:
“If a creditor requires insurance, upon notice to the creditor the consumer shall have the option of providing the required insurance through an existing policy of insurance owned or controlled by the consumer or through a policy to be obtained and paid for by the consumer, but the creditor may for reasonable cause decline the insurance provided by the consumer.”
Cx17940 will be provided in order to inform consumers of their option to request that certain credit insurances be provided through a policy owned or paid for by them. Since this document is not technically required and only needs to be provided if a creditor requires the consumer to obtain certain credit insurances, this document will only be assigned upon request. Once requested, it will print in Initial Disclosure packages when credit insurance is required.
CO Financial Institutions Insurance Disclosure (Cx17941) – This document is required under Colo. Rev. Stat. Ann. § 10-2-604 to be provided by a financial institution which sells insurance, to their customers. The document discloses to the customer that insurance offered or purchased by the financial institution is not a deposit, insured by a government agency, not guaranteed by the financial institution, may involve investment risk, and may be purchased from a producer of the customer’s choice without having an adverse effect on their relationship with the financial institution.
Cx17941 will only be available upon request, due to the low volume of clients who do sell insurance in connection with their loans. Once requested, it will print in all Initial Disclosure packages.
Edits to our current documents are minor in nature, such as updating citations to match Blue Book formatting standards, or fixing typographical or grammatical errors. Notable changes include the following:
Colorado Balloon Note Disclosure (Cx2793): Deletion of the lender signature line, since it is not required under Colo. Rev. Stat. Ann. § 5-3-208.
CO Refinance Disclosure (Cx993): Changing the configuration of the document so that it prints when the field “Heloc” equals “Allow Any.”
Anti-Coercion Insurance Disclosure (Cx2778): Adding the following to the last sentence of the first paragraph of the Colorado-specific version of Cx2778, in order to more fully match the provisions of Ibid. §§ 10-2-602 & 10-3-1105:
“. . . including a condition to purchase the insurance through the lender (if applicable). The lender may reasonably disapprove the insurance policy provided by you, based on reasonable standards uniformly applied, relating to the extent of coverage required and the financial soundness and services of the insurer.”
CO Disburser’s Notice (Cx3760): Changing the configuration of the document so that it prints when the field “Rehabilitation/Renovation” equals “Yes.”
CO Notice to Cosigners (Cx994): Deleting the lender signature line, as well as reconfiguring the borrower signature lines to only print for cosigners on the loan, since this document need only be provided to them under Ibid. § 5-3-105. Also, the document will be reconfigured to print only when “Has Co-Signer on Loan” equals “Yes.”
These changes will take effect, and the new documents will be available, on October 15, 2013. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
October 8, 2013
Various DRs, Task 81415