Amendments for HB24-1011
House Journal, February 1
51 HB24-1011 be amended as follows, and as so amended, be referred to
52 the Committee of the Whole with favorable
53 recommendation:
54
55 Amend printed bill, page 3, line 3, after "MEANS A" insert "WRITTEN".
1 Page 3, strike lines 17 through 19 and substitute "DESTROYED, A
2 BORROWER, AFTER CONSULTING WITH THE BORROWER'S CONTRACTOR,
3 SHALL CREATE A REPAIR PLAN OR REBUILD PLAN FOR THE RESIDENTIAL
4 PROPERTY. THE BORROWER SHALL SUBMIT THE REPAIR PLAN OR REBUILD
5 PLAN TO THE MORTGAGE SERVICER FOR APPROVAL. THE MORTGAGE
6 SERVICER SHALL INDICATE APPROVAL OR DENIAL OF THE PLAN WITHIN
7 THIRTY DAYS OF RECEIPT. THE REPAIR PLAN OR REBUILD PLAN MUST
8 INCLUDE SPECIFIC".
9
10 Page 4, strike lines 1 through 6 and substitute:
11
12 "(c) (I) IF A BORROWER IS NOT DELINQUENT IN MAKING PAYMENTS
13 ON THE MORTGAGE OR THE BORROWER IS LESS THAN THIRTY-ONE DAYS
14 DELINQUENT IN MAKING PAYMENTS ON THE MORTGAGE, A MORTGAGE
15 SERVICER SHALL DISBURSE THE INSURANCE PROCEEDS TO THE BORROWER
16 AS FOLLOWS:".
17
18 Page 4, strike lines 15 through 19 and substitute "SHALL DISBURSE THE
19 REMAINING PROCEEDS BASED ON PERIODIC INSPECTIONS AND PROGRESS ON
20 THE WORK IN ACCORDANCE WITH THE MILESTONES IN THE REPAIR PLAN OR
21 REBUILD PLAN DESCRIBED IN SUBSECTION (2)(b) OF THIS SECTION AND,
22 WHERE REQUIRED BY FEDERAL LAW OR REGULATION, AFTER APPROVAL BY
23 THE FEDERAL HOME LOAN BANKS OR APPLICABLE FEDERAL AGENCY.".
24
25 Page 4, strike lines 24 through 27.
26
27 Page 5, strike line 1 and substitute:
28
29 "(d) IF A BORROWER IS MORE THAN THIRTY-ONE DAYS DELINQUENT
30 IN MAKING PAYMENTS ON THE MORTGAGE, A MORTGAGE SERVICER SHALL
31 DISBURSE THE INSURANCE PROCEEDS TO THE BORROWER AS FOLLOWS:".
32
33 Page 5, after line 21 insert:
34
35 "(e) FOR THE PURPOSES OF DISBURSEMENT OF INSURANCE
36 PROCEEDS AS DESCRIBED IN SUBSECTIONS (2)(c) AND (2)(d) OF THIS
37 SECTION:
38 (I) A MORTGAGE SERVICER SHALL MAKE THE FIRST DISBURSEMENT
39 OF INSURANCE PROCEEDS TO THE BORROWER:
40 (A) WITHIN FOURTEEN DAYS AFTER THE MORTGAGE SERVICER
41 RECEIVES THE INSURANCE PROCEEDS IF THE MORTGAGE IS INSURED BY THE
42 FEDERAL GOVERNMENT OR SECURITIZED BY THE FEDERAL NATIONAL
43 MORTGAGE ASSOCIATION OR THE FEDERAL HOME LOAN MORTGAGE
44 CORPORATION; AND
45 (B) AS SOON AS REASONABLY POSSIBLE AND NO LATER THAN
46 THIRTY DAYS AFTER THE MORTGAGE SERVICER RECEIVES THE INSURANCE
47 PROCEEDS IF THE MORTGAGE IS NOT INSURED BY THE FEDERAL
48 GOVERNMENT OR SECURITIZED BY THE FEDERAL NATIONAL MORTGAGE
49 ASSOCIATION OR THE FEDERAL HOME LOAN MORTGAGE CORPORATION;
50 AND
51 (II) A MORTGAGE SERVICER MAY DISBURSE FUNDS DIRECTLY TO A
52 DESIGNEE OF A BORROWER SO LONG AS:
53 (A) THE DESIGNEE IS AGREED TO BY BOTH THE BORROWER AND
54 THE MORTGAGE SERVICER; AND
55
1 (B) THE DESIGNATION IS PERMITTED BY FEDERAL AND STATE LAW
2 AND ANY ASSOCIATED RULES.".
3
4 Reletter succeeding paragraphs accordingly.
5
6 Page 6, line 12, strike "BORROWER" and substitute "BORROWER, IN
7 WRITING,".
8
9 Page 6, after line 16 insert:
10
11 "(5) NOTHING IN THIS SECTION:
12 (a) PROHIBITS A MORTGAGE SERVICER FROM RELEASING
13 INSURANCE PROCEEDS IN AMOUNTS GREATER THAN REQUIRED BY THIS
14 SECTION;
15 (b) PROHIBITS OR LIMITS A MORTGAGE SERVICER FROM
16 DISTRIBUTING ADDITIONAL MONEY THAT IS MADE AVAILABLE DURING A
17 DECLARED STATE OF EMERGENCY OR NATURAL DISASTER; OR
18 (c) PROHIBITS A MORTGAGE SERVICER FROM COMPLYING WITH
19 FEDERAL RULES AND REGULATIONS.".
20
21
House Journal, February 5
13 Amendment No. 1, Business Affairs & Labor Report, dated January 31,
14 2024, and placed in member's bill file; Report also printed in House
15 Journal, February 1, 2024.
16
17 Amendment No. 2, by Representative Brown:
18
19 Amend printed bill, page 3, line 1, after "MEANS A" insert "WRITTEN".
20
21 As amended, ordered engrossed and placed on the Calendar for Third
22 Reading and Final Passage.
23
Senate Journal, March 27
After consideration on the merits, the Committee recommends that HB24-1011 be
amended as follows, and as so amended, be referred to the Committee of the Whole with
favorable recommendation and with a recommendation that it be placed on the Consent
Calendar.
Amend reengrossed bill, page 6, line 21, strike "MORTGAGE." and substitute
"MORTGAGE UNLESS:
(I) THE PROPERTY IS AN AFFORDABLE RESIDENTIAL RENTAL PROPERTY
THAT IS SUBJECT TO RENT OR INCOME RESTRICTIONS AS REQUIRED BY FEDERAL,
STATE, LOCAL, OR POLITICAL SUBDIVISION PROGRAM REQUIREMENTS; AND
(II) THE INSURANCE PROCEEDS IN EXCESS OF THE REMAINING AMOUNT
THAT THE BORROWER OWES ON THE MORTGAGE ARE NECESSARY TO RETURN THE
PROPERTY TO THE SAME CONDITION IN WHICH THE PROPERTY EXISTED PRIOR TO
THE DAMAGE OR DESTRUCTION.".
Page 6, line 24, strike "BORROWER." and substitute "BORROWER AS REQUIRED
BY THIS SECTION.".
Page 7, strike line 22 and substitute "FEDERAL RULES, REGULATIONS, AND
REQUIREMENTS.".
Business,
Labor, &
Technology
Senate Journal, March 29
HB24-1011 by Representative(s) Brown and Amabile; also Senator(s) Cutter and Marchman--
Concerning mortgage servicers, and, in connection therewith, requiring mortgage servicers
to take certain actions regarding the disbursement of insurance proceeds to borrowers.
Amendment No. 1, Business, Labor & Technology Committee Amendment.
(Printed in Senate Journal, March 28, page(s) 608 and placed in members' bill files.)
Amendment No. 2(L.006), by Senator Cutter and Marchman.
Amend reengrossed bill, page 8, after line 15 insert:
"SECTION 4. In Colorado Revised Statutes, repeal 10-4-112 as
follows:
10-4-112. Property damage - time of payment. (1) After an insurer
has issued a draft or check to a loss payee and the insured under the terms of a
property damage policy for the repair of property damage to a one- to
four-family dwelling unit or an owner-operated commercial property when the
mortgage or deed of trust secures a debt not in excess of two hundred thousand
dollars, such draft or check, if satisfactory in an amount to the insured, shall be
properly endorsed by the insured in favor of the loss payee and delivered to the
loss payee.
(2) If the draft or check is for the full amount of the loss and is in an
amount of one thousand dollars or less, the loss payee shall return the draft or
check, properly endorsed, to the insured within ten days after the date of its
receipt by the loss payee, unless the evidence of the debt or the instrument given
as security for the debt is in default.
(3) If the draft or check is in an amount in excess of one thousand
dollars, or is a partial payment on a loss in an amount in excess of one thousand
dollars, the loss payee shall either:
(a) Send the draft or check, properly endorsed, to the insured within ten
days after the date of its receipt by the loss payee;
(b) Process the draft or check for collection or deposit, except as
provided in paragraph (c) of this subsection (3). Any loss payee holding funds
under this paragraph (b), upon its approval of contracts or plans for the
completion of repairs, shall make reasonable advances or progress payments as
appropriate to be applied to the completion of repairs and shall be entitled to
require appropriate lien waivers and to inspect the repairs during the progress
of the repairs. The loss payee shall be entitled to retain up to fifteen percent of
the amount of the draft or check as retainage until completion and inspection,
satisfactory to the insured, of the work.
(c) Process the draft or check for collection or deposit. Any loss payee
holding funds under this paragraph (c) shall hold such funds for the payment of
the cost of repairs unless any one of the following circumstances is present:
(I) The evidence of the debt or the instrument given as security for the
debt is in default. If the default is a result of failure to make payments in a
timely manner as required by the evidence of debt or the instrument securing
the debt, the loss payee may apply an amount of such proceeds sufficient to cure
the default, including taxes, penalties, and late charges, and hold the balance for
the cost of repairs, pursuant to paragraph (b) of this subsection (3).
(II) The restoration of the property would violate local, state, or federal
laws or regulations;
(III) The property cannot reasonably be restored to its condition prior
to the loss at a cost of not to exceed the amount of the draft, reduced by an
amount applied to cure a default pursuant to subparagraph (I) of this paragraph
(c).
(d) Advise the insurer and insured that it is not satisfied with the
amount of the draft or check and pursue a claim for the loss under the terms of
the policy. Upon such notification the insured shall not be precluded from
pursuing, either singly or jointly with the loss payee, a claim for the loss under
the terms of the policy.
(4) Neither approval of contracts, plans for the completion of repairs,
nor inspection of the work shall make the loss payee liable to any person for any
improper, negligent, or unsatisfactory repairs.".
Renumber succeeding section accordingly.
As amended, ordered revised and placed on the calendar for third reading and final
passage.