NOTE: The governor signed this measure on 3/15/2013.
      
      
      HOUSE BILL 13-1017
      
      
      BY REPRESENTATIVE(S) Lebsock, Buckner, Court, Duran, Exum,
      Fields, Fischer, Ginal, Hamner, Hullinghorst, Kagan, Kraft-Tharp, Labuda,
      McCann, McLachlan, Melton, Mitsch Bush, Moreno, Pabon, Peniston,
      Pettersen, Primavera, Rosenthal, Ryden, Salazar, Schafer, Singer, Vigil,
      Williams, Young, Ferrandino;
      also SENATOR(S) Tochtrop and Giron, Guzman, Heath, Johnston, Kefalas,
      King, Newell, Nicholson, Steadman, Todd, Ulibarri, Morse.
      
      
      Concerning a requirement that successor servicers of residential
           mortgage loans follow through with loan modifications
           offered to borrowers, and, in connection therewith,
           requiring a servicer to inform a successor servicer of the
           terms of any modification offer upon any transfer of
           servicing rights for the loan.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, add 38-40-103.5 as
      follows:
      
           38-40-103.5.  Notice upon transfer of servicing rights - prior
      servicer's offer to borrower survives transfer. (1)  As used in this
      section:
      
           (a)  "Borrower" means a person liable under an evidence of
      debt constituting a residential mortgage loan.
      
           (b)  "Evidence of debt" has the meaning set forth in section
      38-38-100.3 (8).
      
           (c)  "Holder" means the holder of an evidence of debt
      constituting a residential mortgage loan.
      
           (d)  "Residential mortgage loan" has the meaning set forth
      in section 12-61-902, C.R.S.
      
           (e) (I)  "Servicer" means a person who collects, receives, or
      has the right to collect or receive payments on behalf of a
      holder, including payments of principal, interest, escrow amounts,
      and other amounts due on obligations due and owing to the
      holder.
      
           (II)  "Servicer" includes:
      
           (A)  The person or entity to whom payments are to be sent,
      as listed on the most recent billing statement or payment coupon
      provided to the borrower; or
      
           (B)  A subsidiary, affiliate, or assignee of a servicer,
      however designated, including a person designated as a
      subservicer.
      
           (2)  A servicer to whom servicing rights for a residential
      mortgage loan have been sold or transferred by the holder or by
      a predecessor servicer is subject to, and shall honor, the
      borrower's acceptance, prior to the sale or transfer of servicing
      rights, of any offer previously made by the holder or predecessor
      servicer in connection with a modification of a residential
      mortgage loan.
      
           (3)  At the time of the transfer or sale of servicing rights
      for a residential mortgage loan, the transferor or seller shall
      inform the buyer or transferee of the servicing rights whether a
      loan modification is pending.
      
           (4)  A contract for the transfer or sale of servicing rights
      for a residential mortgage loan must obligate the successor
      servicer to:
      
           (a)  Accept and continue processing any pending loan
      modification requests; and
      
           (b)  Honor any trial and permanent loan modification
      agreements entered into by the prior servicer.
      
           SECTION 2.  In Colorado Revised Statutes, amend 38-40-104 as
      follows:
      
           38-40-104.  Cause of action - attorney fees. (1)  If any applicant or
      debtor is aggrieved by a violation of section 38-40-102, or 38-40-103,
      which or 38-40-103.5 and the violation is not remedied in a reasonable,
      timely, and good faith manner by the party obligated to do so, and after a
      good faith effort to resolve the dispute is made by the debtor or borrower,
      such the debtor or borrower may bring an action in a court of competent
      jurisdiction for any such violation. and, If the court finds that actual
      damages have occurred, the court shall award to the debtor or
      borrower, in addition to actual damages, the amount of one thousand
      dollars, together with and costs and reasonable attorney fees.
      
           (2)  No A transferee from a lender shall be is not liable for any act
      or omission of the lender under section 38-40-102. No A transferee of
      servicing or collection rights shall be is not liable for any act or omission
      of the transferor of those rights under section 38-40-103 or 38-40-103.5.
      
           SECTION 3.  Applicability. This act applies to loan modification
      offers made on or after the effective date of this act.
      
           SECTION 4.  Safety clause. The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                         John P. Morse
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO