Colo. Rev. Stat. Ann. § 12-61-905.5(1) requires the following (in relevant part):
“. . . The [Board of Mortgage Loan Originators] has the power to impose an administrative fine in accordance with section 12-61-905, deny a license, censure a licensee, place the licensee on probation and set the terms of probation, order restitution, order the payment of actual damages, or suspend or revoke a license when the board finds that the licensee or applicant has performed, is performing, or is attempting to perform any of the following acts:
(e) Acting for more than one party in a transaction without disclosing any actual or potential conflict of interest or without disclosing to all parties any fiduciary obligation or other legal obligation of the mortgage loan originator to any party.”
In order to comply with this provision, we will now be providing Cx17091 as a generic document, which both discloses any potential conflict of interest (e.g. the originator is a relative of a person providing products or services in connection with the loan), as well as whether the originator has a fiduciary or legal obligation to a party involved in the transaction.
New fields have been created allowing clients to enter details about these conflicts. Clients may enter information in the new “Conflict of Interest Description” field (Field 40130) to detail any conflict of interest not otherwise listed on the form. Details filled out in field series “Conflict of Interest – Obligations Party Name” and “Conflict of Interest – Obligations Explanation” will disclose to the borrower of any obligations the originator has to another party in the transaction.
This document will print under the following conditions:
- Conflict of Interest = Yes
- Document Package Type = Initial Disclosure
- State Code = Colorado
This document will begin printing on November 21, 2015. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 130355
Update:
Due to the fact that it is possible for there to be a valid change of circumstance where a new party to the transaction is hired, who may have some type of relationship with the mortgage loan originator, we will also be configuring Cx17091 to print in Redisclosure loan packages by default.
DR 187326