The CBA created the Environmental Sustainability Program to encourage law firms to reduce energy use and waste. The Challenge contained three components: people, planet, and profit, all of which are crucial to creating a sustainable practice. For each component, law practices across the state commit to make cost-saving investments and take conservation steps to promote energy efficiency and environmental best practices.

The CBA has three levels of sustainability that the law firms can meet.

• Advocate – Law Practice commits to 10-15 measures in the challenge.

• Leader – Law Practice commits to 16-20 measures in the challenge.

• Partner – Law practice commits to 20+ measures in the challenge.

Balcomb & Green was awarded as a “Leader.” To earn this designation, we implemented 20 specific measures required by the CBA, including installing energy efficient light bulbs and movement sensors throughout its office, tracking our energy consumption, transportation consumption, water usage, and paper usage from the office, using 100% recycled paper, recycling used paper, offering reusable kitchen utensils, glasses or mugs for employees and clients. Most of these programs were already in place at Balcomb & Green before the CBA’s program. We are proud to be one of the first law firms on the Western Slope to earn the designation of “Leader” in environmental sustainability practices for law office.

Balcomb & Green is a general practice law firm located in Glenwood Springs, Colorado, specializing in water rights, real estate, estate planning, and land use law.

Scott has trial and appellate experience in water rights and land use matters, as well as experience before all levels of government. He represents individuals, local governments, property owners, and homeowners associations in water court adjudications, land use questions and real estate transactions.

Scott is active in the local community. He is a ski racing coach for the Buddy Werner program at Sunlight Mountain and also serves on the City of Glenwood Springs’ Financial Advisory Board. He enjoys fishing, cycling and camping with his wife, Kathryn, and three sons, William, Nathan, and Ryan.

Scott is a graduate of the Colorado College and University of Denver, Sturm College of Law.

Balcomb & Green is a full-service law firm located in Glenwood Springs and serving clients statewide. 970-945-6546 or info@balcombgreen.com.

Balcomb & Green assists many clients in navigating the complicated regulatory regime of the Garfield County land use code. Balcomb & Green specializes in land use law and represents some of the largest developers in Garfield County and Glenwood Springs, including Battlement Mesa Partners, Glenwood Meadows, LLC, Aspen Glen, and Ranch at Roaring Fork Homeowners’ Association.

By: Chad J. Lee, Esq.

A. Licensing Required for Colorado Loan Originators, Including For Mobile Home Parks.

New federal regulations have broadened the scope of who must be licensed as a “mortgage originator.” The federal SAFE Act was enacted to provide minimum standards for the licensing of residential mortgage loan originators to combat fraud in the wake of the recent housing market crash. Compliance with the SAFE Act is mandatory. The act is very broad and applies to all types of financing which involve a security interest on a dwelling unit. All persons involved in the financing of a dwelling unit, whether it is real estate, mobile homes, or otherwise, need to comply with Colorado’s version of the SAFE Act. A violation of this act is a Class I misdemeanor and may be punishable by a fine of up to $5,000. (See, e.g. C.R.S. 12-61-910).

Colorado’s version of the SAFE Act was enacted in 2009 as the Mortgage Loan Originator Licensing Act (“MLOLA” C.R.S. § 12-61-901 et seq.). It requires all Colorado loan originators to obtain a license prior to originating a loan which contains any type of consensual security interest in a “dwelling unit.” “Dwelling unit” means any type of home, including a mobile home. A “loan originator” is defined very broadly as “an individual who (I) takes a residential mortgage loan application; or (II) offers or negotiates terms of a residential mortgage loan for compensation or gain.” (C.R.S. § 12-61-902).

According to Colorado’s MLOLA, a “Residential mortgage loan” means: “a loan that is primarily for personal, family, or household use and that is secured by a mortgage, deed of trust, or other equivalent, consensual security interest on a dwelling or residential real estate upon which is constructed or intended to be constructed a single-family dwelling or multiple-family dwelling of four or fewer units.” (C.R.S. § 12-61-902 (emphasis added)).

Under new federal regulations effective August 29, 2011, a “consensual security interest” includes any type of security interest, including installment sales contracts. The feds stated this was “consistent with the treatment by many states of such contracts in the same manner as mortgages and purchase money mortgages offered by sellers of residential real estate. While there is no formal recorded lien held by the provider of financing, the fact that the seller holds title to the property until the contract has been paid in full is the practical equivalent of a lien for purposes of the SAFE Act and its purposes and is comparable to the status of a mortgage in a state that follows title theory under mortgage law.” (SAFE Mortgage Licensing Act: Minimum Licensing Standards and Oversight Responsibilities, 76 FR 38464-01, effective August 29, 2011 (emphasis added)).

If your job description even comes close to fitting under the definition above, you need to consult with an attorney determine whether you must be licensed. Licensing Requirements can be found on the Colorado Department of Real Estate website. Below is a brief summary of licensing requirements:

(1) Submit fingerprints for a criminal history check
(2) Complete a pre-licensing course
(3) Pass a two part examination developed by DORA
(4) Obtain a surety bond
(5) Obtain errors and omissions insurance
(6) Complete DORA license application
(7) Pass the national component of the SAFE Mortgage Loan Originator exam
(8) Register with the Nationwide Mortgage Licensing System and Registry

B. Exemptions: Seller Financing and Attorneys

1. Seller Financing Exemption.

Earlier this year, the Colorado legislature enacted an exemption for a person who provides mortgage financing for the sale of no more than three properties in any twelve-month period, so long as the property is owned by the person and serves as security for the loan. (House Bill 11-1022). This exemption only applies to persons, estates, and trusts that carry back a loan on the property. Business entities are not entitled to the benefit of this exemption.

2. Attorney Exemption.

Attorneys are also exempt from the law. Many businesses have begun to utilize law firms as their mortgage originators, as this is often more efficient that licensing and in-house compliance. The MLOLA permits an attorney to receive the original application and to negotiate the terms of the loan. Loan processors are exempt from the act, so long as their duties are clerical in nature, like those performed after the receipt of an application, including collection and analysis of information used for processing the loan, and communicating with the borrower to obtain information necessary to underwrite a loan. However, any communication which offers or negotiates loan rates or terms must be done by a licensed originator or attorney.

If you are unsure whether your business or personal activities require licensing under the MLOLA, please consult with a qualified real estate attorney. For those of you who must comply with the law, but do not have the time or energy to be licensed, consider hiring a law firm to act as the mortgage originator instead.

About the Author: Chad J. Lee is a real estate attorney at Balcomb & Green, P.C. in Glenwood Springs, Colorado. Chad represents clients across the Western Slope involved in the financing of real estate, including mobile home park owners. Chad can be reached by email: clee@balcombgreen.com.

Chris will open the workshop with an informational discussion on Colorado Water Law 101 for participants. This is the second time Chris has participated in a workshop for the Colorado Water Trust; he led a similar discussion at the Trust’s April 23, 2010 Water on the Land workshop in Basalt.

Other speakers will discuss the Upper Colorado River drainage, Colorado’s instream-flow program, and the Colorado Water Trust’s program for converting existing, consumptive water rights to instream use. The workshop will be held at the Granby Library, 55 Zero Street, from 9:00 – 4:00. More information is available at www.coloradowatertrust.org.