New Colorado Tri-Party Agreement

Sent to me by CMLA
Colorado allows funding lenders, title companies and warehouse line providers to enter into a Tri-Party Agreement ("TPA") by which checks from the mortgage company can be used as "Good Funds." This funding option can provide greater flexibility when closing loans and allows consumers, real estate agents and other parties to a loan transaction to receive funds at the closing table.

Over the past eighteen months, the Colorado Division of Insurance ("DOI") has worked with the Land Title Association of Colorado ("LTAC"), the CMLA and other interested parties to amend the Tri-Party Agreement ("TPA") to better accommodate the interests of consumers, title companies, lenders and warehouse line providers.

DOI has published a new TPA as part of a 23-Page regulatory bulletin available at their web site. Lenders, title companies and warehouse line providers who have interest in the TPA should consult Pages 14 - 16 of DOI bulletin # 3-5-1 for information about the TPA and the "Good Funds" Statute.

It is also important for all lenders, title companies and warehouse line providers who utilize TPAs and checks to close loans to begin the process of converting to the newly amended TPA as soon as possible. The new form is provided on Pages 18-23 of the DOI bulletin.

Click here to download DOI Bulletin # 3-5-1 and the New Tri-Party Agreement