(1)Except as otherwise provided
in section 12-10-713, this part 7 does not apply to the following, unless otherwise
determined by the federal bureau of consumer financial protection or the United
States department of housing and urban development:
(a)With respect to a residential mortgage loan:
(I)A person, estate, or trust that provides mortgage financing for the sale of
no more than three properties in any twelve-month period to purchasers of the
properties, each of which is owned by the person, estate, or trust and serves as
security for the loan; or
(II)An individual who acts as a mortgage loan originator, without
compensation or gain to the mortgage loan originator, in providing loan financing
for not more than three residential mortgage loans in any twelve-month period
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(1) Except as otherwise provided
in section 12-10-713, this part 7 does not apply to the following, unless otherwise
determined by the federal bureau of consumer financial protection or the United
States department of housing and urban development:
(a) With respect to a residential mortgage loan:
(I) A person, estate, or trust that provides mortgage financing for the sale of
no more than three properties in any twelve-month period to purchasers of the
properties, each of which is owned by the person, estate, or trust and serves as
security for the loan; or
(II) An individual who acts as a mortgage loan originator, without
compensation or gain to the mortgage loan originator, in providing loan financing
for not more than three residential mortgage loans in any twelve-month period to a
family member of the individual. The board shall define family member by rule.
For purposes of this exemption only, compensation or gain excludes any interest
paid under the loan financing provided.
(b) A bank and a savings association as these terms are defined in the
Federal Deposit Insurance Act, 12 U.S.C. sec. 1811 et seq., as amended, a
subsidiary that is owned and controlled by a bank or savings association, employees
of a bank or savings association, employees of a subsidiary that is owned and
controlled by a bank or savings association, credit unions, and employees of credit
unions;
(c) An attorney who renders services in the course of practice, who is
licensed in Colorado, and who is not primarily engaged in the business of
negotiating residential mortgage loans;
(d) A person who:
(I) Funds a residential mortgage loan that has been originated and processed
by a licensed person or by an exempt person;
(II) Does not solicit borrowers in Colorado for the purpose of making
residential mortgage loans; and
(III) Does not participate in the negotiation of residential mortgage loans with
the borrower, except for setting the terms under which a person may buy or fund a
residential mortgage loan originated by a licensed or exempt person;
(e) A loan processor or underwriter who is not an independent contractor and
who does not represent to the public that the individual can or will perform any
activities of a mortgage loan originator. As used in this subsection (1)(e), represent
to the public means communicating, through advertising or other means of
communicating, or providing information, including the use of business cards,
stationery, brochures, signs, rate lists, or other promotional items, that the
individual is able to provide a particular service or activity for a consumer.
(f) To the extent that it is providing programs benefitting affordable housing
dwelling units, an agency of the federal government, the Colorado government, or
any of Colorado's political subdivisions or employees of an agency of the federal
government, of the Colorado government, or of any of Colorado's political
subdivisions;
(g) Quasi-government agencies, HUD-approved housing counseling
agencies, or employees of quasi-government agencies or HUD-approved housing
counseling agencies;
(h) Community development organizations or employees of community
development organizations;
(i) Self-help housing organizations or employees of self-help housing
organizations or volunteers acting as an agent of self-help housing organizations;
(j) A person licensed under part 2 of this article 10 who represents a person,
estate, or trust providing mortgage financing under subsection (1)(a) of this section.
(2) The exemptions in subsection (1) of this section shall not apply to persons
acting beyond the scope of the exemptions.
(3) The board may adopt reasonable rules modifying the exemptions in this
section in accordance with rules adopted by the federal bureau of consumer
financial protection or the United States department of housing and urban
development.