The Colorado Division of Real Estate recently finalized amendments to 4 Colo. Code Regs. 5 in order to conform Colorado’s disclosure requirements to TRID’s disclosures (see 38 CR 17 [2015]). Of particular note is the following new requirement:
“A. Pursuant to the disclosure requirements set forth in Section 12-61-914, and Section 38-40-102, C.R.S., mortgage loan originators must fully comply with all provisions of the TILA-RESPA Integrated Disclosure Rule, must disclose all fees and costs required in the TILA-RESPA Integrated Disclosure Rule, and must utilize the appropriate forms in the TILA-RESPA Integrated Disclosure Rule. Full compliance with the provisions of the TILA-RESPA Integrated Disclosure Rule satisfies the disclosure requirements set forth in Section 12-61-914, and Section 38-40-102, C.R.S.
B. For any mortgage loan application or transaction that is exempt from the TILA-RESPA Integrated Disclosure Rule, mortgage loan originators must disclose the following:
- The Truth-in-Lending Disclosure;
- A form that itemizes the disclosure of all third-party fees and costs and must include a mortgage loan originator and borrower signature and dates in which the disclosure was completed and signed. (information commonly found in the pre-2010 HUD Good Faith Estimate Disclosure form); and
- The Colorado Lock-in Disclosure.” (Ibid. § 5.14; emphasis added)
Essentially, this means that the following documents provided pursuant to Colo. Rev. Stat. Ann. § 12-61-914 do not need to be provided for TRID loans:
- CO Disclosure (Cx12866) – Colo. Rev. Stat. Ann. § 12-61-914(2)(a), (e), & (g);
- CO Lock-In Disclosure (Cx13134) – Ibid. § 12-61-914(2)(d), (2)(f), & (3); and
- CO Explanation of Fee Increase (Cx14439) – Ibid. § 12-61-914(4)
We will, therefore, be adding the following condition to their print configurations:
- Integrated Disclosure Loan Indicator = No
Since the Colorado Lock-in Disclosure will now only print for non-TRID loans, we will also be modifying the conditions of the FHA Lock-in Agreement (Cx19817) so that it prints for FHA loans in Colorado, in order to fulfill FHA requirements.
Despite the fact that both the CO Disclosure and CO Explanation of Fee Increase forms are not listed in 4 Colo. Code Regs. § 5.14(B) as being required forms for non-TRID loans, both fulfill disclosure requirements under Colo. Rev. Stat. Ann. § 12-61-914 which are not adequately covered by the TIL, the GFE, or the Lock-in Disclosure and, therefore, will continue to print for these types of loans.
These changes will take effect on September 25, 2015. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
September 18, 2015
DR 183040