State Law Update: Colorado Protects Pending Modifications On Transferred Mortgage Loans

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On March 15, Colorado enacted HB 1017, which requires a loan servicer to whom servicing rights for a residential mortgage have been sold or transferred to honor or continue processing any pending loan modification, as long as the borrower’s acceptance of the loan modification occurs prior to the sale or transfer of servicing rights. The bill also requires that, at the time of transfer, the prior servicer must disclose any pending loan modifications to the new servicer. The new provisions took effect immediately and apply to all modification offers made on or after March 15, 2013.

Topics:  Loan Modifications, Mortgage Loan Servicing Standards, Mortgages

Published In: General Business Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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