§ 12-10-726 — Fee, commission, or compensation - when permitted - amount

Colorado § 12-10-726

• Jurisdiction: Colorado
• Title 12: Professions
• Art.: Real Estate

Text

(1) Except as otherwise permitted by subsection (2) or (3) of this section, a
mortgage loan originator shall not receive a fee, commission, or compensation of
any kind in connection with the preparation or negotiation of a residential mortgage
loan unless a borrower actually obtains a loan from a lender on the terms and
conditions agreed to by the borrower and mortgage loan originator.

(2) If the mortgage loan originator has obtained for the borrower a written
commitment from a lender for a loan on the terms and conditions agreed to by the
borrower and the mortgage loan originator, and the borrower fails to close on the
loan through no fault of the mortgage loan originator, the mortgage loan originator
may charge a fee, not to exceed three hundred dollars, for services rendered,
preparation of documents, or transfer of documents in the borrower's file that were
prepared or paid for by the borrower if the fee is not otherwise prohibited by the
federal Truth in Lending Act, 15 U.S.C. sec. 1601, and Regulation Z, 12 CFR 226, as
amended.

(3) A mortgage loan originator may solicit or receive fees for third-party
provider goods or services in advance. Fees for any goods or services not provided
shall be refunded to the borrower, and the mortgage loan originator may not charge
more for the goods and services than the actual costs of the goods or services
charged by the third-party provider.

Legislative History

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 712, � 1, effective October 1.