(1) A mortgage loan originator shall have a duty of good faith and fair dealing in all communications and transactions with a borrower. The duty includes, but is not limited to:
The duty to not recommend or induce the borrower to enter into a transaction thatdoes not have a reasonable, tangible net benefit to the borrower, considering all of the circumstances, including the terms of a loan, the cost of a loan, and the borrower's circumstances;
The duty to make a reasonable inquiry concerning the borrower's current and prospective income, existing debts and other obligations, and any other relevant information and, after making the inquiry, to make his or her best efforts to recommend, broker, or originate a residential mortgage loan that takes into consideration the information submitted by the borrower, but the mortgage loan originator shall not be deemed to violate this section if the borrower conceals or misrepresents relevant information; and
The duty not to commit any acts, practices, or omissions in violation of section 3840-105.
For purposes of implementing subsection (1) of this section, the board may adoptrules defining what constitutes a reasonable, tangible net benefit to the borrower.
A violation of this section constitutes a deceptive trade practice under the "ColoradoConsumer Protection Act", article 1 of title 6.
Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 698, § 1, effective October 1.
Editor's note: This section is similar to former § 12-61-904.5 as it existed prior to 2019.