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March 2018 CMLA Legislative and Regulatory Update

Published: March 07, 2018

Dear CMLA Members:

The Second Regular Session of the Seventy-First General Assembly convened on January 10, 2018 and will end on May 9, 2018.  Our Legislative and Regulatory Affairs Committee (LARAC) is actively following these and other bills and issues as they arise.

Here are some of the issues and legislation we are following with links to the bills underlined.  If CMLA has a position on the bill, that is noted.  Information in this report is subject to change as developments take place.

  • HB18-1174(SUPPORT) - CONCERNING THE CONTINUATION UNDER THE SUNSET LAW OF THE BOARD OF MORTGAGE LOAN ORIGINATORS AND IN CONNECTION THEREWITH, ADOPTING THE LEGISLATIVE RECOMMENDATIONS OF THE DEPARTMENT OF REGULATORY AGENCIES AS CONTAINED IN THE DEPARTMENT’S SUNSET REPORT
    As covered in a previous letter to the membership from Terry Jones, Legislative and Regulatory Affairs Committee Chair, this bill continues the program for another 11 years, changes the time limit that the Board of MLOs has to issue an MLO license to 60 days after receipt of the last document, amends the SAFE Act education standards into the Act, and the SAFE Act standards for criminal convictions, conforming Colorado law more closely to the SAFE Act requirements.  As currently amended, the bill encourages the governor to appoint to one of the three licensee seats, licensed MLO who works for or is a contractor to a Colorado-based Mortgage Company.
  • SB18-109(AMEND) - CONCERNING AN AUTHORIZATION FOR NOTARIES PUBLIC TO PERFORM NOTARIAL ACTS USING AUDIO-VIDEO COMMUNICATION
    CMLA believes remote notarization of documents is an important step to accomplish.  We believe that the audio-video recording should be limited to the notarial act and not the entire closing. Second, the collection and sale of consumer data needs to be limited, and finally the law needs to be clear that a lender is free to refuse to accept a remotely notarized document should they choose to do so.
  • SB18-125(MONITOR) - CONCERNING FIDUCIARY RESPONSIBILITIES OF TITLE INSURANCE ENTITIES TO PROTECT FUNDS HELD IN CONJUCTION WITH REAL ESTATE CLOSING SETTLEMENT SERVICES
    This bill clarifies that the Colorado Commissioner of Insurance has the authority and jurisdiction to write rules governing the fiduciary duties of title companies closing services (who might be considered exempt from the Insurance Commissioner’s jurisdiction because closing services are not an insurance product).  We will continue to keep an eye on the bill as it moves through the legislative process as proper protection of funds in a real estate transaction is of concern to our industry.
  • HB18-1254(AWAITING INFORMATION) - CONCERNING THE MODIFICATION OF THE FORECLOSURE PROCESS ON PROPERTY THAT IS ENCUMBERED BY A DEED OF TRUST – This is a clean-up measure to modify certain aspects of the foreclosure process.  CMLA has been actively involved in the stakeholder group that provided input on this bill.  We are awaiting information on an amendment before adopting a position.
  • HB18-1128(MONITOR) - CONCERNING STRENGTHENING PROTECTIONS FOR CONSUMER DATA PRIVACY
    We are following this bill which deals with the security of private information and record keeping.  
  • HB18-1233(SUPPORT) - CONCERNING A CONSUMER REPORTING AGENCY’S PLACEMENT OF A SECURITY FREEZE ON THE CONSUMER REPORT OF A CONSUMER WHO IS UNDER THE CHARGE OF A REPRESENTATIVE AT THE REQUEST OF THE CONSUMER’S REPRESENTATIVE
    This bill is one of several bills that were introduced partially in reaction to the Equifax, Experian and other large data breaches along with the increasing level of identity theft of both children and at-risk adults.  This bill allows the parents, guardians or conservators of children of at-risk adults to put credit freezes on the credit reports of their charges.  
  • HB18-1154(NEUTRAL) - CONCERNING CONSUMER PROTECTIONS RELATING TO A SOLICITATION TO PROVIDE A COPY OF A PUBLIC RECORD FOR A FEE
    This bill limits the charges that solicitors who sell copies of records obtainable from the public records from the county clerks and recorders offices (documents such as copies of warranty deeds, deeds of trust, etc.) at very high markups or multiples of the cost they are available for at the clerk’s offices, and bans their use of solicitations that appear to be official government correspondence to do so.  We did make some suggestions in bill language.

Affordable Housing Bills:

  • HB18-1195(AWAITING INFORMATION) - CONCERNING THE CREATION OF A CREDIT AGAINST THE STATE INCOME TAX TO PROMOTE CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS ENGAGED IN THE DEVELOPMENT OF AFFORDABLE HOUSING FOR HOME OWNERSHIP
    This bill creates a tax credit program to support affordable housing statewide, and since it is administered by CHFA who has a wide range of experience administering affordable housing programs it seems to have promise.  Our triage group voiced a general recommendation of support, but with some questions/issues that we would like to see addressed. 
  • SB18-006(MONITOR- BILL FAILED) - CONCERNING THE ABILITY OF THE COUNTIES TO INCREASE THE FEE THEY CHARGE FOR THE RECORDING OF REAL ESTATE DOCUMENTS FOR THE PURPOSE OF FINANCING A STATEWIDE ATTAINABLE HOUSING INVESTMENT FUN
    This bill would have permitted counties to increase the documentary fee surcharge up to an additional $5.00 to fund attainable housing throughout the State.  It also would have resulted in recording fees varying from county to county statewide.  A similar bill failed last year as this one did this year.
  • SB18-007(SUPPORT) - CONCERNING THE COLORADO AFFORDABLE HOUSING TAX CREDIT, AND, IN CONNECTION THEREWITH, RENAMING THE LOW-INCOME HOUSING TAX CREDIT THE COLORADO AFFORDABLE HOUSING TAX CREDIT AND EXTENDING THE PERIOD DURING WHICH THE COLORADO HOUSING AND FINANCE AUTHORITY MAY ALLOCATE AFFORDABLE HOUSING TAX CREDITS
    Continues a successful program administered by CHFA that has helped several thousand people throughout the state find affordable housing.

CMLA members who have questions or concern are encouraged to contact me at any time. 

Respectfully Submitted,

Jim Clark
Executive Director

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