Colorado

ATTORNEY GENERAL SEEKING REGULATION OF MORTGAGE BROKERS
Attorney General, John Suthers thinks regulating mortgage brokers is a way to combat increasing mortgage fraud in Colorado. Colorado is in the top 10 states for mortgage fraud nationwide. Only Colorado and Alaska do not regulate mortgage brokers. Suthers is traveling the state to present information on the problem of mortgage fraud and seeking public feedback on the issue and what to do about it. Legislators are gearing up to introduce bills next session that will provide the regulatory framework and streamline the foreclosure process so it is more consumer friendly. Regulations will likely include background checks and require that mortgage brokers post a $100,000 bond to ensure that consumers who are defrauded can be compensated. An interesting note is the fact that the Colorado legislature eliminated the real estate recovery fund in 2005, two years after it raided the fund to balance the state budget.