C.R.S.
Section 5-3.5-103
Restricted acts and practices
(1)
The following acts and practices are prohibited in the making of a covered loan:(a)
No lending without cautionary notice.(I)
A lender may not make a covered loan unless the lender or a mortgage broker has given the following notice, or a substantially similar notice, in writing to the obligor within a reasonable period of time after determining that the loan would result in a covered loan, but no later than the time by which the notice is required under the notice provision contained in 12 CFR 226.31 (c), as amended:(II)
It shall be a rebuttable presumption that a lender or broker has met its obligation to provide this disclosure if the consumer provides the lender or broker with a signed acknowledgment of receipt of a copy of the notice set forth in subparagraph (I) of this paragraph (a).(b)
No lending without due regard to repayment ability.(I)
A lender may not make a covered loan to a consumer based on the consumer’s collateral without regard to the consumer’s repayment ability, including the consumer’s current and expected income, current obligations, and employment.(II)
There is a presumption that a creditor has violated this paragraph (b) if the creditor engages in a pattern or practice of making loans subject to 12 CFR 226.32 without verifying and documenting consumers’ repayment abilities.(III)
Intentionally left blank —Ed.(A)
In the case of a stated income loan, the reasonable basis for believing that there are sufficient funds to support the covered loan may not be based solely on the income stated by the obligor, but may include other information in the possession of the lender after the solicitation of all information that the lender customarily solicits in connection with stated income loans. A lender shall not knowingly or willfully originate a covered loan as a stated income loan with the intent of evading this subparagraph (III).(B)
A person who willfully and knowingly gives false or inaccurate information or fails to provide information that the person is required to disclose pursuant to applicable law may have violated and may be subject to penalties established in 15 U.S.C. sec. 1611.(c)
Refinancing within a one-year period.(d)
No refinancing certain low-rate loans.(e)
Restrictions on covered loan proceeds to pay home improvement contracts.(f)
No financing of credit insurance.(g)
No recommending default.(h)
No fee for payoff quote.
Source:
Section 5-3.5-103 — Restricted acts and practices, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-05.pdf
(accessed Oct. 20, 2023).