Document Updates: Changes for eSign version of Colorado Reasons for Loan (Cx12874)

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. Our Cx12874 is provided to satisfy this requirement.

To improve the eSign functionality of Cx12874, we are updating the Form-Fill area borrowers use to manually populate their reasons for seeking a mortgage loan. Since the reasons for securing the loan will apply to all borrowers, the first borrower to eSign the document will fill out the reasons and then sign the form. All subsequently signing borrowers will only sign the form. This change ensures that the form functions similarly for borrowers who use Form-Fill and those who populate the reasons using Field 39888 “Net Tangible Benefit – Other Benefit Description”. In addition, the Form-Fill area has also been expanded to allow for more room.

Please note that the 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”.

These changes are available for testing on Stage & Stage 2 servers and will take effect on July 16, 2025. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.