DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
MORTGAGE LOAN ORIGINATORS AND MORTGAGE COMPANIES
4 CCR 725-3

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
January 18, 2017

CHAPTER 1:	Definitions

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Board of Mortgage Loan Originators (the “Board”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules of the Board.

STATEMENT OF BASIS

The statutory basis for the rules titled Rules of the Board of Mortgage Loan Originators is Part 9 of Title 12, Article 61, Colorado Revised Statutes, as amended.  

STATEMENT OF PURPOSE

The purpose of this rule is to effectuate the legislative directive to promulgate necessary and appropriate rules in conformity with the state statutes of the Mortgage Loan Originator Licensing and Mortgage Company Registration Act.

SPECIFIC PURPOSE OF THIS RULEMAKING

The purpose of this rule is to define terms pertaining to the practices of mortgage loan originators and mortgage companies and ensuring state and federal terms reconcile.  

Proposed New, Amended and Repealed Rules

[Deleted material shown struck through, new material shown ALL CAPS. Rules, or portions of rules, which are unaffected are reproduced.  Readers are advised to obtain a copy of the complete rules of the Board at www.dora.state.co.us/real-estate/.

CHAPTER 1:	Definitions

1.4	Advertisement: Any commercial message that promotes consumer credit. Advertisements may appear:
A.	In newspapers, magazines, leaflets, flyers, catalogs, direct mail literature, or other printed material;
B.	On radio, television, or a public address system;
C.	On an inside or outside sign or display, or a window display;
D.	In point-of-sale literature, price tags, signs, and billboards; or
E.	Online, such as on the internet. HAS THE SAME MEANING AS SET FORTH IN 12 C.F.R. §1026.2(a)(2) AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.

         1.6	Business Day:
	A.	General business day means a day on which the offices of the creditor are open to the public carrying on substantially all of the creditor's business functions.
	B.	Specific business day means all calendar days except Sundays and federal holidays. HAS THE SAME MEANING AS SET FORTH IN 12 C.F.R. §1026.2(a)(6) AND 12 C.F.R. §1024.2(b) AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.
1.9	Creditor: Is a person or organization (a) that regularly extends consumer credit for which a finance charge is required or that is repayable in more than four installments even without a finance charge, and (b) to whom the obligation is initially payable—for example, the finance company, bank, automobile dealer or other lender identified on the face of the credit agreement. A person or organization is considered to extend credit “regularly,” if it has extended credit more than 25 times during the preceding year or more than 5 times for transactions secured by dwellings. HAS THE SAME MEANING AS SET FORTH IN 12 C.F.R. §1026.2(a)(17) AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.

1.11	Finance Charge: The dollar amount charged for credit. It includes interest and other costs, such as service charges, transaction charges, buyer’s points, loan fees, and mortgage insurance. It also includes the premiums for credit life, accident, and health insurance, if required, and for property insurance, unless the buyer may select the insurer. HAS THE SAME MEANING AS SET FORTH IN 12 C.F.R. §1026.4(a) AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.

1.13	Good Faith Estimate Disclosure: Is the SAME disclosure form established in the Real Estate Settlement Procedures Act, Part 3500SPECIFIC TO REGULATION X, Appendix C AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.

1.29	Application: means the submission of a consumer’s financial information for the purposes of obtaining an extension of credit and consists of the submission of the following six pieces of information: (1) the consumer’s name; (2) the consumer’s income; (3) the consumer’s social security number to obtain a credit report; (4) the property address; (5) an estimate of the value of the property; and (6) the mortgage loan amount sought. HAS THE SAME MEANING AS SET FORTH IN 12 C.F.R. §1026.2(a)(3) AND 12 C.F.R. §1024.2(b) AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.

1.34	Truth-in-Lending Disclosure: Is the SAME disclosure form established by the Truth in Lending Act, specific to Regulation Z, Appendices H-2, H-3, H-4(a), (b), (c) and (d) AS INCORPORATED BY REFERENCE IN BOARD RULE 1.36.

1.37	MLO Compensation Rule: means the Consumer Financial Protection Bureau’s Loan Originator Compensation rule set forth in 12 C.F.R. § 1026 et seq., Truth in Lending Act (Regulation Z), effective January 10, 2014, incorporated by reference in compliance with Section 24-4-103(12.5), C.R.S., and does not include any later amendments or editions of the final rule. A certified copy of the MLO Compensation rule is readily available for public inspection at the offices of the Board of Mortgage Loan Originators at 1560 Broadway, Suite 925, Denver, Colorado. The MLO Compensation rule may be examined at the internet website of the Consumer Financial Protection Bureau at www.consumerfinance.gov. The Consumer Financial Protection Bureau may also be contacted at 1700 G Street, NW, Washington, D.C. 20552 or by telephone at (202) 435-7000. [REPEALED]

1.38	Colorado Lock-in Disclosure: means the Colorado Lock-in Disclosure form created by the Board of Mortgage Loan Originators. This form is to be used for any loan application or transaction that is exempt from NOT UNDER THE AUTHORITY of the TILA-RESPA Integrated Disclosure rule RULE AS DEFINED AND INCORPORATED BY REFERENCE IN BOARD RULE 1.36. This disclosure may be found on the Division of Real Estate’s Website. A mortgage loan originator may use an alternate form if the alternate form includes all information required on the Colorado Lock-in Disclosure form, as determined by the Board.

A hearing on the above subject matter will be held on Wednesday, January 18, 2017, at the Colorado Division of Real Estate, 1560 Broadway, Suite 110-D, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.