HB16-1306 Summary

• Revises Colorado mortgage loan originator statutes to align with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 by relocating and repealing provisions.

• Allows the board to adopt the uniform state test administered through the Nationwide Mortgage Licensing System for the state-specific portion of the mortgage loan originator examination.

• Expands exemptions to include parents who provide loan financing to their children, in addition to the existing exemption for entities financing no more than three property sales per year.

• Adds eight new disciplinary grounds in section 12-61-905.5, including unfair or deceptive practices, fraud, misrepresentation, false advertising of rates, and failure to comply with federal lending laws (Truth in Lending Act, Real Estate Settlement Procedures Act, Equal Credit Opportunity Act, Gramm-Leach-Bliley Act, Home Mortgage Disclosure Act, and Telemarketing Sales Rule).

• Repeals sections 12-61-911, 12-61-910.4, and 12-61-913, consolidating prohibited conduct provisions into the disciplinary actions framework; takes effect August 10, 2016, subject to referendum petition.