IMPORTANT LEGAL REQUIREMENTS
Important definitions. Under § 5-21-103(4), C.R.S., mortgage servicer means: a person, wherever located,
that is responsible for servicing a Colorado residential mortgage loan. A mortgage servicer includes a person
that makes payments to a borrower under a reserves mortgage, as defined in § 11-38-102(3), C.R.S.
o A mortgage servicer does not include:
a supervised financial organization as defined in § 5-1-301(45), C.R.S.;
a mortgage loan originator regulated by the Division of Real Estate or as defined in § 12-10-
702(14)(a), C.R.S., except that mortgager loan originator or mortgage company that also
services a residential mortgage loan is a mortgage servicer;
a federal agency or department;
a collection agency as defined in § 5-16-103(3), C.R.S., that is license pursuant to § 5-16-120,
C.R.S. or is exempt from licensure under § 5-16103(3)(e), C.R.S. and whose mortgage debt
collection business involves collection of residential mortgage loans obtained by the collection
agency after default, except that a collection agency that also services resident mortgage
loans assigned to the collection agency before default is a mortgage servicer;
an agency, instrumentality, or political subdivision of this state;
a supervised lender as defined in § 5-1-301(46), C.R.S., that also services residential mortgage
loans is a mortgage servicer;
a small servicer that services fewer that five thousand residential mortgage loans in any
calendar year, exclusive of loans held for sale, as determined by the Administrator, who shall
apply the criteria in 12 C.F.R. 1026.41(e)(4)(iii) or any successor regulation;
a person that the Administrator designates by rule or order as exempt. These exemptions are
limited to nonprofit organizations, government agencies, or other entities whose primary
business is not to service mortgages and that seek to promote affordable housing or
financing;
an originator or servicer that utilizes a subservicer to carry out the administrative functions or
servicing a mortgage unless the subservicer is acting at the direction of the originator or
servicer; or
a person that services loans held for sale.
Record retention. Pursuant to § 5-21-105(2), C.R.S., a mortgage servicer shall maintain adequate records for
not less than four years following the final payment on the residential mortgage loan, transfer of the
mortgage servicing rights, or the assignment of the loan, whichever occurs first. Upon request by the
Administrator, a mortgage servicer shall make the records available by registered or certified mail, return
receipt requested, or any express delivery carrier that provides a dated delivery receipt, not later than thirty
business days after requested by the Administrator or other method of deliver as agreed to in writing by the
Administration, including secure electronic transmission. Upon a notifier’s request, the Administrator may
grant the notifier additional time to make the records available or to send the records to the Administrator.
o Every mortgage servicer shall maintain records in conformity with the Colorado Nonbank Mortgage
Servicers Act, rules adopted pursuant to the Act, and generally accepted accounting principles and
practices in a manner that will enable the Administrator to determine whether the servicer is
complying with the Act. A mortgage servicer’s record-keeping system is sufficient if the servicer
makes the required information reasonably available. The records need not be kept in the place of
business where mortgage loans are serviced if the Administrator is given free access to the records
wherever located.
Annual notification. Pursuant to § 5-21-105, C.R.S. nonbank mortgage servicers must notify the Administrator
and pay the notification fee annually.