2020 Colorado Revised Statutes
Title 12 - Professions And Occupations
Article 10. Real Estate

Editor's note: This title 12 was repealed and reenacted, with relocations, in 2019. This article 10 was numbered as parts 1, 2, 4, 6, 7, 8, and 9 of article 61 of this title 12 prior to 2019. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this title 12, see the comparative tables located in the back of the index or https://leg.colorado.gov/sites/default/files/images/olls/title-12-2019table.pdf.

Cross references: For the penalty for selling land twice, see § 18-5-302.


PART 1 COMMON DEFINITIONS PART 2 BROKERS AND SALESPERSONS

Cross references: For the exemption of real estate brokers and sales representatives from certain provisions of the "Colorado Securities Act", see §§ 11-51-402 (3) and 11-51-405 (2).

PART 3 BROKERS' COMMISSIONS PART 4 BROKERAGE RELATIONSHIPS

Law reviews: For article, "The New Brokerage Legislation: The Demise of 'Agency By Surprise'", see 22 Colo. Law. 1919 (1993); for article, "Designated Brokerage: Colorado Real Estate Agency Law Evolves Again", see 32 Colo. Law. 11 (March 2003).

PART 5 SUBDIVISIONS

Cross references: For regulation of subdivisions by planning commissions, see part 1 of article 28 of title 30 and part 2 of article 23 of title 31.

PART 6 REAL ESTATE APPRAISERS

Law reviews: For article, "Professional Standards for the Appraiser", see 22 Colo. Law. 1263 (1993).

PART 7 MORTGAGE LOAN ORIGINATORS
  1. Short title. The short title of this part 7 is the "Mortgage Loan Originator Licensing and Mortgage Company Registration Act".

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 686, § 1, effective October 1.

Editor's note: This section is similar to former § 12-61-901 as it existed prior to 2019.

  1. Definitions. As used in this part 7, unless the context otherwise requires:

  1. "Affiliate" means a person who, directly or indirectly, through intermediaries, controls, is controlled by, or is under the common control of another person addressed by this part 7.

  2. "Affordable housing dwelling unit" means an affordable housing dwelling unit asdefined in section 29-26-102.

  3. "Board" means the board of mortgage loan originators created in section 12-10-703.

  4. "Borrower" means any person who consults with or retains a mortgage loan originator in an effort to obtain or seek advice or information on obtaining or applying to obtain a residential mortgage loan for himself, herself, or persons including himself or herself, regardless of whether the person actually obtains such a loan.

  5. "Community development organization" means any community housing development organization or community land trust as defined by the federal "Cranston-Gonzalez National Affordable Housing Act" of 1990 or a community-based development organization as defined by the federal "Housing and Community Development Act of 1974", that is also either a private or public nonprofit organization that is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and that receives funding from the United States department of housing and urban development, Colorado division of housing, Colorado housing and finance authority, or United States department of agriculture rural development, or through a grantee of the United States department of housing and urban development, purely for the purpose of community housing development activities.

  6. "Depository institution" has the same meaning as set forth in the "Federal DepositInsurance Act", 12 U.S.C. sec. 1813 (c), and includes a credit union.

  7. "Dwelling" shall have the same meaning as set forth in the federal "Truth in LendingAct", 15 U.S.C. sec. 1602 (w).

  8. "Federal banking agency" means the board of governors of the federal reserve system, the comptroller of the currency, the director of the office of thrift supervision, the national credit union administration, or the federal deposit insurance corporation.

  9. "HUD-approved housing counseling agency" means an agency that is either a privateor public nonprofit organization that is exempt from taxation under section 501 (a) of the federal

"Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue

Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and approved by the United States department of housing and urban development, in accordance with the housing counseling program handbook section 7610.1 and 24 CFR 214.

  1. "Individual" means a natural person.

  2. (a) "Loan processor or underwriter" means an individual who performs clerical or support duties at the direction of, and subject to supervision by, a state-licensed loan originator or a registered loan originator.

(b) As used in this subsection (11), "clerical or support duties" includes duties performed after receipt of an application for a residential mortgage loan, including:

  1. The receipt, collection, distribution, and analysis of information commonly used forthe processing or underwriting of a residential mortgage loan; and

  2. Communicating with a borrower to obtain the information necessary to process orunderwrite a loan, to the extent that the communication does not include offering or negotiating loan rates or terms or counseling consumers about residential mortgage loan rates or terms.

  1. "Mortgage company" means a person other than an individual who, through employees or other individuals, takes residential loan applications or offers or negotiates terms of a residential mortgage loan.

  2. "Mortgage lender" means a lender who is in the business of making residentialmortgage loans if:

  1. The lender is the payee on the promissory note evidencing the loan; and

  2. The loan proceeds are obtained by the lender from its own funds or from a line ofcredit made available to the lender from a bank or other entity that regularly loans money to lenders for the purpose of funding mortgage loans.

  1. (a) "Mortgage loan originator" means an individual who:

(I) Takes a residential mortgage loan application; or (II) Offers or negotiates terms of a residential mortgage loan.

(b) "Mortgage loan originator" does not include:

  1. An individual engaged solely as a loan processor or underwriter;

  2. A person that only performs real estate brokerage or sales activities and is licensedor registered pursuant to part 2 of this article 10, unless the person is compensated by a mortgage lender or a mortgage loan originator;

  3. A person solely involved in extensions of credit relating to time share plans, asdefined in 11 U.S.C. sec. 101 (53D);

  4. An individual who is servicing a mortgage loan; or

  5. A person that only performs the services and activities of a dealer, as defined insection 24-32-3302.

  1. "Nationwide mortgage licensing system and registry" means a mortgage licensingsystem developed pursuant to the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008", 12 U.S.C. sec. 5101 et seq., as amended, to track the licensing and registration of mortgage loan originators and that is established and maintained by:

  1. The Conference of State Bank Supervisors and the American Association of

Residential Mortgage Regulators, or their successor entities; or

  1. The secretary of the United States department of housing and urban development.

  1. "Nontraditional mortgage product" means a mortgage product other than a thirtyyear, fixed-rate mortgage.

  2. "Originate a mortgage" means to act, directly or indirectly, as a mortgage loan originator.

  3. "Person" means a natural person, corporation, company, limited liability company,partnership, firm, association, or other legal entity.

  4. "Quasi-government agency" means an agency that is either a private or public nonprofit organization that is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and was created to operate in accordance with article 4 of title 29 as a public housing authority.

  5. "Real estate brokerage activity" means an activity that involves offering or providing real estate brokerage services to the public, including, without limitation:

  1. Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lesseeof real property;

  2. Bringing together parties interested in the sale, purchase, lease, rental, or exchange ofreal property;

  3. Negotiating, on behalf of any party, any portion of a contract relating to the sale,purchase, lease, rental, or exchange of real property, other than matters related to financing for the transaction;

  4. Engaging in an activity for which a person engaged in the activity is required underapplicable law to be registered or licensed as a real estate agent or real estate broker; or

  5. Offering to engage in any activity, or act in any capacity related to the activity, described in this subsection (20).

  1. "Residential mortgage loan" means a loan that is primarily for personal, family, orhousehold use and that is secured by a mortgage, deed of trust, or other equivalent, consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a single-family dwelling or multiple-family dwelling of four or fewer units.

  2. "Residential real estate" means any real property upon which a dwelling is or willbe constructed.

  3. "Self-help housing organization" means a private or public nonprofit organizationthat is exempt from taxation under section 501 (a) of the federal "Internal Revenue Code of 1986" pursuant to section 501 (c) of the federal "Internal Revenue Code of 1986", 26 U.S.C. sec. 501 (a) and 501 (c), as amended, and that purely originates residential mortgage loans with interest rates no greater than zero percent for borrowers who have provided part of the labor to construct the dwelling securing the loan or that receives funding from the United States department of agriculture rural development section 502 mutual self-help housing program for borrowers that have provided part of the labor to construct the dwelling securing the loan.

  4. "Servicing a mortgage loan" means collecting, receiving, or obtaining the right tocollect or receive payments on behalf of a mortgage lender, including payments of principal, interest, escrow amounts, and other amounts due on obligations due and owing to the mortgage lender.

  5. "State-licensed loan originator" means an individual who is:

(a) A mortgage loan originator or engages in the activities of a mortgage loan originator; (b) Not an employee of a depository institution or a subsidiary that is:

  1. Owned and controlled by a depository institution; and

  2. Regulated by a federal banking agency;

  1. Licensed or required to be licensed pursuant to this part 7; and

  2. Registered as a state-licensed loan originator with, and maintains a unique identifierthrough, the nationwide mortgage licensing system and registry.

  1. "Unique identifier" means a number or other identifier assigned to a mortgage loanoriginator pursuant to protocols established by the nationwide mortgage licensing system and registry.

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 686, § 1, effective October 1.

Editor's note: This section is similar to former § 12-61-902 as it existed prior to 2019.

PART 8 HOA INFORMATION AND RESOURCE CENTER PART 9 HOME WARRANTY SERVICE CONTRACTS
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