Bulletin: CO000038

Dear Associates:

This Bulletin updates the guidelines and underwriting requirements in order to issue the Colorado Additional Advances Endorsement 108.8 due to recent statutory changes in the Colorado Statute relating to Future Advances. §C.R.S. 38-39-106.

The following additional underwriting requirement will be added under (1) of the guidelines for issuing this form:

(i) Evidence satisfactory to underwriting that according to §C.R.S. 38-39-106, "additional amounts" include one or more of the following:

a. All increases in the principal amount that results from negative amortization or the addition of deferred interest;

b. All disbursements made for the payment of taxes, levies or insurance with respect to the property subject to the mortgage or made to protect such property from waste, damage, or abuse;

c. If the mortgage or evidence of the debt secured by the mortgage so provides, all reasonable expenses associated with collection of the indebtedness or foreclosure of the mortgage; and

d. Interest on any of the following items specified in paragraphs (a) to (c) in accordance with the terms of the mortgage or evidence of debt secured by the mortgage.

IF YOU HAVE ANY QUESTIONS REGARDING THE ISSUES RAISED BY THIS BULLETIN, PLEASE CONTACT YOUR LOCAL UNDERWRITING PERSONNEL.