2009 Colorado Legislative Highlights
Summary of Colorado 2009 Legislative Actions
RESPRO Colorado State Chapter
By Patrick Rice, Legislative Chairperson
January 29, 2010
The following is merely a highlight of many of the provisions of the cited bills approved by the 2009 Colorado Legislature. This summary is not meant to be a substitute for the thorough review of each of these bills nor is it intended to highlight each and every aspect of these bills. You are strongly urged to carefully review each bill and seek appropriate legal counsel to assure compliance of each provision. Copies of these bills can be downloaded in Adobe Acrobat (.pdf ) format at: http://www.leg.state.co.us/. Click on the House or Senate link for current “Bills”.
The 2009 legislative session was highlighted by several bills focusing on the continuing foreclosure issues facing Colorado lenders and borrowers. The following bills created new consumer protections, clarified procedural issues or created a mechanism to accurately report foreclosure data within Colorado:
H.B. 09-1109 (Rep. Priola, Sen. Veiga): “Concerning the extension of Foreclosure Protection to Purchasers of Residential Properties as to which Formal Proceedings have not yet been Commenced.”
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Amends the definition of a “residence in foreclosure” to include a residence or dwelling occupied as the home owner’s principal residence subject to a mortgage loan that is at least thirty days delinquent.
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Effective date: July 1, 2009.
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SIGNED BY THE GOVERNOR 3/20/09.
H.B. 09-1197 (Rep. McNulty, Sen. Harvey): “Concerning a Requirement that the Division of Housing Report Data Regarding Home Foreclosures in the State.”
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Division of Housing shall compile data quarterly concerning foreclosures in Colorado and collect data on the following items, among others:
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The number of Notice of Election and Demands recorded
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The number of properties sold at auction
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The number of defaults cured after the recording of a Notice of Election and Demand
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Automatic repeal on January 1, 2015
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Effective date: August 5, 2009
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SIGNED BY THE GOVERNOR 4/3/09.
H.B. 09-1207 (Rep. C. Gardner, Sen. Veiga): “Concerning Procedures to Enforce a Lien Related to Real Property”.
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34 page bill that, among other things, amends definition of “Amended Mailing List” to clarify the various parties to whom notice must be given
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Clarifies the procedures and copies of documents required to be provided to parties to a foreclosure
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Provides that a recorded affidavit that modifies a deed of trust or mortgage shall be accepted by the Trustee as evidence of such modification
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Clarifies the procedures for assignments of the deed of trust during the foreclosure process
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Modifies various time frames concerning the foreclosure process
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Modifies the form of a written bid
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Clarifies various provisions concerning continuation of sale, withdrawal, rescission of sale, and redemption.
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Effective date: Much of the bill became effective September 1, 2009 and the remainder became effective January 1, 2010
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SIGNED BY THE GOVERNOR 4/22/09.
H.B. 09-1227 (Rep. Frangas, Sen. Hudak): “Concerning Equity Skimming of Real Property.”
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Modifies the definition of the crime of “equity skimming of real property” to include collecting rents after a foreclosure sale on behalf of anybody other than the real property owner.
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Effective date: September 1, 2009
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SIGNED BY THE GOVERNOR 4/21/09.
H.B. 09-1276 (Rep. Ferrandino, Sen. M. Carroll): “Concerning a Delay in the Foreclosure of Residential Property for Eligible Borrowers.”
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Requires the holder of an evidence of debt to provide written notice of the Foreclosure Deferment Program set forth in Section 38-38-802 and sets out the time frames for providing such notice
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Establishes the eligibility of a borrower under the Foreclosure Deferment Program and the procedures for contacting a foreclosure counselor and related time frames associated with the foreclosure counselor’s determination of the borrower’s qualification for foreclosure deferment
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Establishes the terms of the foreclosure deferment, including the obligation of the holder and borrower to negotiate the terms of the debt obligation, requiring the borrower to make loan payments, taxes and insurance during the deferment; and procedures for the borrower’s failure to comply.
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Effective date: June 30, 2009
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SIGNED BY THE GOVERNOR 6/2/09.
Other bills relating to the real estate industry dealt with mortgage loan originator licensing, title insurance rate and fee filing justifications, affordable housing funding, designated beneficiary agreements, increasing the penalties under the “Colorado Consumer Protection Act”, and the timely payment of debts relating to property liens. The following is a summary of these bills:
H.B. 09-1085 (Rep. Rice, Sen. Heath): “Concerning the Regulation of Mortgage Loan Originators, and in connection therewith, Modifying the Mortgage Broker Licensing Act to Conform to the Federal ‘Secure and Fair Enforcement for Mortgage Licensing Act of 2008’ and Exempting Certain Financial Institutions from the List of Prohibited Practices Under the Act, and Making an Appropriation.”
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41 page bill that cleans up terms such as “mortgage broker” becoming “mortgage loan originator”, clarifies who is required to become licensed as a mortgage loan originator and the acts that fall within the definition;
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Requires state-licensed mortgage loan originators to register with the nationwide mortgage licensing system and registry established under the SAFE act no later than 7/31/2010
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Requires that a unique identifier provided through the registry appears on residential mortgage loan application forms, solicitations or ads
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Exempts various entities from the act, including banks and other entities subject to federal banking regulation
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Deletes the previous requirement that copies of certain loan documents be provided to the borrower one day prior to closing
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Effective date: August 5, 2009
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SIGNED BY THE GOVERNOR 5/21/09.
H.B. 09-1155 (Rep. Weissmann, Sen. M. Carroll): “Concerning Title Insurance, and, in connection therewith, Requiring Justifications to be Filed with the Commissioner of Insurance.”
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Requires all new or amended rate and/or fee filings submitted by a title entity to be accompanied by a justification for the rate or fee
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Authorizes the Commissioner to promulgate rules to implement the act
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Effective date: August 4, 2009
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SIGNED BY THE GOVERNOR 3/18/09.
H.B. 09-1213 (Rep. Gagliardi, Sen. Schwartz): “Concerning the Creation of the Housing Development Grant Fund in the State Treasury to be Administered by the Division of Housing for Purposes Associated with Increasing the Supply of Affordable Housing in the State.”
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Establishes The Housing Development Grant Fund within the State Treasury with the express purpose of improving, preserving or expanding the supply of affordable housing and to finance foreclosure prevention activities in Colorado
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Effective date: June 30, 2009
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SIGNED BY THE GOVERNOR 5/2/09.
H.B. 09-1260 (Rep. Ferrandino, Sen. Veiga): “Concerning Designated Beneficiary Agreements”.
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30 page bill that authorizes two competent and unmarried adults to enter into a designated beneficiary agreement whereby each adult is designated the beneficiary of the other
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Entitles each party to the designated beneficiary agreement to various financial protections regarding ownership of real and personal property
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Allows each party to inherit through intestate succession upon the death of the other designated beneficiary
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Creates forms for designation as well as revocation
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Effective date: July 1, 2009
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SIGNED BY THE GOVERNOR 4/9/09
S.B. 09-54 (Sen. Scheffel, Rep. A. Kerr): “Concerning an Increase in the Civil Penalties Recoverable by the State under Statutes Related to Fair Trade.”
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Imposes a penalty of two thousand dollars per violation and raises the maximum civil penalties under the Colorado Consumer Protection Act from $100,000 to $500,000 and $250,000 under the Colorado Antitrust Act of 1992
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Clarifies that the Act does not create a private right of action by requiring suit to be brought by the Attorney General or a district attorney
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Effective date: August 5, 2009
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SIGNED BY THE GOVERNOR 4/20/09.
S.B. 09-137 (Sen. Renfroe, Rep. Baumgardner): “Concerning the Timely Payment of Debts in Relation to a Waiver of the Right to Attach a Property Lien.”
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Makes it a class one misdemeanor to knowingly fail to timely pay the debts that covered by a lien waiver
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Requires a lien waiver to contain a statement that all debts associated with the lien waiver have been paid or will be timely paid
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Effective date: July 1, 2009
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SIGNED BY THE GOVERNOR 4/20/09.
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