HB 21-1282: Colorado Nonbank Mortgage Servicers Act

• Creates the "Colorado Nonbank Mortgage Servicers Act" establishing state regulation of mortgage servicers handling Colorado residential mortgage loans, effective January 1, 2022

• Requires mortgage servicers to notify the state administrator within 30 days of commencing business and annually by January 31, and to pay initial and annual notification fees

• Grants the administrator broad investigative and enforcement powers including examination authority, record access, and ability to issue cease-and-desist orders, civil penalties up to amounts in 12 U.S.C. § 5565(c)(2), and refunds to borrowers

• Exempts certain entities including supervised financial organizations, mortgage loan originators regulated by the Division of Real Estate, federal agencies, small servicers with fewer than 5,000 loans, and nonprofits promoting affordable housing

• Appropriates $51,783 to the Department of Law for 2021-22 fiscal year (0.5 FTE) from the Uniform Consumer Credit Code Cash Fund to implement the act