2021 Colorado Code
Title 5 - Consumer Credit Code
Article 21 - Colorado Nonbank Mortgage Servicers Act (Effective January 1, 2022)
§ 5-21-108. Powers and Duties of the Administrator - Rules

1. [ ] The administrator may conduct investigations and examinations as follows:
   1. For purposes of general or specific inquiry or investigation to determine compliance with this article 21, the administrator may access, receive, and use any records or information belonging to a notifier or person subject to this article 21 who may have failed to notify the administrator pursuant to section 5-21-104, including criminal, civil, and administrative history information; personal history and experience information, including independent credit reports obtained from a consumer reporting agency described in section 603 (p) of the federal “Fair Credit Reporting Act”, 15 U.S.C. sec. 1681a, as amended; and any other records or information the administrator considers relevant to the inquiry or investigation regardless of the location, possession, control, or custody of the records or information.
   2. The administrator may initiate an investigation or examination where there is reason to believe that there is a potential violation that risks consumer harm, where a person who may be subject to this article 21 may have failed to notify the administrator, or based on a substantiated complaint. The administrator may review, investigate, or examine any notifier or person subject to this article 21 as often as necessary in order to carry out the purposes of this article 21. The administrator may direct, subpoena, or order the attendance of and examine under oath any person whose testimony may be required about the residential mortgage loan, residential mortgage loan servicing, or the business or subject matter of an examination or investigation and may direct, subpoena, or order the person to produce records the administrator considers relevant to the inquiry. Nothing limits the scope of the administrator's authority to review and investigate potential violations or harm discovered in the course of an investigation.
   3. 1. In making an examination or investigation authorized by this section, the administrator may control access to any records of the notifier or person under examination or investigation. The administrator may take possession of the records or place a person in exclusive charge of the records in the place where they are usually kept. (c) (I) In making an examination or investigation authorized by this section, the administrator may control access to any records of the notifier or person under examination or investigation. The administrator may take possession of the records or place a person in exclusive charge of the records in the place where they are usually kept.
      2. During the period of control, a person may not remove or attempt to remove any of the records except pursuant to a court order or with the written consent of the administrator. Unless the administrator has reasonable grounds to believe the records of the notifier or person have been, or are at risk of being, altered or destroyed for purposes of concealing a violation of this article 21, the notifier or owner of the records may have access to the records as necessary to conduct its ordinary business affairs.

2. In order to carry out the purposes of this section, the administrator may:
   1. Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in conducting examinations or investigations;
   2. Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and records or information obtained under this section;
   3. Use, hire, contract for, or employ publicly or privately available analytical systems, methods, or software to examine or investigate the notifier or person subject to this article 21;
   4. Accept and rely on examination or investigation reports made by other government officials within or outside this state; and
   5. Accept audit reports made by an independent certified public accountant for the notifier or person subject to this article 21 in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in a report of examination, report of investigation, or other writing of the administrator.

3. A person subject to investigation or examination under this section may not knowingly withhold, abstract, remove, mutilate, or destroy any records or other information relating to information regulated under this article 21.
4. Whenever it appears to the administrator that a person has violated, is violating, or is about to violate this section or a rule adopted pursuant to this article 21 or that a notifier or an owner, director, officer, member, partner, shareholder, trustee, employee, or agent of the notifier has committed fraud, engaged in dishonest activities, or made a misrepresentation, the administrator may take action against the person or notifier in accordance with this article 21.
5. The administrator shall adopt rules as necessary to implement this article 21.

History. Source: L. 2021: Entire article added, (HB 21-1282), ch. 482, p. 3440, § 1, effective January 1, 2022.