Cx3584 is provided pursuant to Colo. Rev. Stat. Ann. §§ 5-3-106 & 5-18-107. The first part of the document is meant to comply with the following requirement:
“With respect to a real estate secured credit transaction payable in installments, other than one pursuant to a revolving credit account, if the creditor credits payments made after the due date as of the date of receipt rather than the date payment was due, the creditor must clearly and conspicuously disclose to the consumer at or before the time that credit is extended the effect of untimely payments using language in substantially the following form:
‘The dollar amount of the finance charge disclosed to you for this credit transaction is based upon your payments being received by the creditor on the date payments are due. If your payments are received after the due date, even if received before the date a late fee applies, you may owe additional and substantial money at the end of the credit transaction and there may be little or no reduction of principal. This is due to the accrual of daily interest until a payment is received.’” (Ibid. § 5-3-106[1])
The second part of the document is meant to comply with the following:
“A creditor that makes or arranges for extensions of consumer loans secured by a dwelling and that uses credit scores for that purpose shall, upon request of the consumer, provide to the consumer to whom the credit report relates, as soon as practicable and reasonable, but in a period not to exceed thirty days, a copy of the information specifically required to be disclosed pursuant to section 5-18-17(1) in a form obtained from a consumer reporting agency as defined in section 5-18-103(4). The creditor may charge a reasonable fee for making such information available to the consumer and such charge shall be an additional charge within the meaning of section 5-2-202 and not part of the finance charge.” (Ibid. § 5-3-106[2])
As a result of a review, we will be changing Cx3584’s print configuration of “HELOC = No” to “HELOC = Allow Any”, but will also configure the first part of the document to print only when “HELOC does not equal Yes” (since a real estate secured credit transaction payable in installments pursuant to a revolving credit account is explicitly exempt from Ibid. § 5-3-106[1], but is not excluded from Ibid. § 5-3-106[2]).
We are also making (mostly) nonsubstantive changes to the text of the form, to make it easier for the borrower to read. The only substantive change is the replacement of the phrase “within thirty days” within the second sentence (“You may request within thirty days a copy of the information specifically required [etc.]”) with “from the Lender” (“You may request from the Lender a copy of the information specifically required [etc.]”). This change is due to the fact that Ibid. § 5-3-106(2) requires the creditor to provide a copy of the borrower’s credit report “as soon as practicable and reasonable, but in a period not to exceed thirty days”; it does not require the borrower to request a copy of the report within thirty days.
These changes will be in effect on July 29, 2020. Questions or concerns should be directed to Client Support at 1.800.497.3584.
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