According to Colorado regulation 4 CCR § 725-3:5.7(B), the mortgage loan originator is required to obtain, in writing, the reasons borrowers are seeking a mortgage loan. Subsection 1 places the responsibility on the mortgage loan originator to ensure information is acquired and accurately documented. Subsection 2 states “…a mortgage loan originator may not have demonstrated a duty of good faith and fair dealing…if it is determined that a mortgage loan originator completed the required purpose or reason for a [loan] without consulting the borrower.”
Consequently, and to improve form functionality, we are updating the comments section that prints on Cx12874, allowing borrowers to manually add comments during the eSign/Form-Fill process in the section on the form that reads:
“Please describe on the following lines the reasons you are seeking a mortgage loan, or refinancing your existing mortgage loan.”
Please note, this new eSign/Form-Fill functionality will only be triggered, by default, if the reasons are NOT already being sent in Field 39888 “Net Tangible Benefit – Other Benefit Description”.
This change will be in effect on April 26, 2019. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 285998