Colorado permissible fees

Colorado permits mortgage brokers to charge fees disclosed in writing within three business days of application, but a fee that inures to the broker’s benefit may not exceed the disclosed amount unless the need was not reasonably foreseeable and the borrower receives three business days’ notice before closing. A broker may charge a fee only if a loan is actually obtained; however, if the broker obtains a written commitment from a lender and the borrower fails to close through no fault of the broker, the broker may charge up to $300 for services rendered (C.R.S. § 12-61-915). Brokers must refund any fees for third-party services not provided and cannot charge a fee based on “best efforts” alone (C.R.S. § 12-61-911(d)). For lenders, Colorado does not impose specific caps on origination, application, processing, or underwriting fees; lenders must provide a good-faith estimate of settlement charges consistent with RESPA requirements (C.R.S. § 38-40-102). State law does not separately regulate lender fee amounts beyond federal standards and general prohibitions on unconscionable or deceptive practices.