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.