(1) Unless a mortgage loan originator complies with both subsections (2) and (3) of this section, he or she shall not act as a mortgage loan originator in any transaction in which:
(a) The mortgage loan originator acts or has acted as a real estate broker or salesperson; or
(b) Another person doing business under the same licensed real estate broker acts or has acted as a real estate broker or salesperson.
(2) Before providing mortgage-related services to the borrower, a mortgage loan originator shall make a full and fair disclosure to the borrower, in addition to any other disclosures required by this part 7 or other laws, of all material features of the loan product and all facts material to the transaction.
(3) (a) A real estate broker or salesperson licensed under part 2 of this article 10 who also acts as a mortgage loan originator shall carry on the mortgage loan originator business activities and shall maintain the person's mortgage loan originator business records separate and apart from the real estate broker or sales activities conducted pursuant to part 2 of this article 10. The activities shall be deemed separate and apart even if they are conducted at an office location with a common entrance and mailing address if:
(I) Each business is clearly identified by a sign visible to the public;
(II) Each business is physically separated within the office facility; and
(III) No deception of the public as to the separate identities of the broker business firms results.
(b) This subsection (3) shall not require a real estate broker or salesperson licensed under part 2 of this article 10 who also acts as a mortgage loan originator to maintain a physical separation within the office facility for the conduct of its real estate broker or sales and mortgage loan originator activities if the board determines that maintaining the physical separation would constitute an undue financial hardship upon the mortgage loan originator and is unnecessary for the protection of the public.
Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 710, � 1, effective October 1.
Editor's note: This section is similar to former � 12-61-912 as it existed prior to 2019.
12-10-725. Written disclosure of fees and costs - contents - limits on fees - rules. (1) A mortgage loan originator's disclosures must comply with all applicable requirements of:
(a) The federal Truth in Lending Act, 15 U.S.C. sec. 1601 et seq., and Regulation Z, 12 CFR 226 and 12 CFR 1026;
(b) The federal Real Estate Settlement Procedures Act of 1974, 12 U.S.C. sec. 2601 et seq., and Regulation X, 12 CFR 1024 et seq.;
(c) The federal Equal Credit Opportunity Act, 15 U.S.C. sec. 1691 and Regulation B, 12 CFR 202.9, 202.11, and 202.12 and 12 CFR 1002;
(d) Title V, Subtitle A of the federal Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, 15 U.S.C. secs. 6801 to 6809, and the federal trade commission's privacy rules, 16 CFR 313 and 314, adopted in accordance with the federal Gramm-Leach-Bliley Act;
(e) The federal Home Mortgage Disclosure Act of 1975, 12 U.S.C. sec. 2801 et seq., and Regulation C, 12 CFR 203 and 12 CFR 1003, pertaining to home mortgage disclosure;
(f) The Federal Trade Commission Act of 1914, 15 U.S.C. sec. 45 (a), and 16 CFR 233;
(g) The federal Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. secs. 6101 to 6108, and the federal trade commission's telemarketing sales rule, 16 CFR 310.
(2) The board may, by rule, require mortgage loan originators to comply with other mortgage loan disclosure requirements contained in applicable statutes and regulations in connection with making any residential mortgage loan or engaging in other activity subject to this part 7.
Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 711, � 1, effective October 1.
Editor's note: This section is similar to former � 12-61-914 as it existed prior to 2019.