Colorado

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Colorado

BILLS SEEK TO LICENSE & REGULATE MORTGAGE LENDERS

In an effort to combat foreclosures in Colorado, lawmakers have introduced two bills that seek to license and regulate mortgage lenders. Senate President Pro Tem, Peter Groff introduce a bill, SB-203, that would require licensing and insurance for home loan originators and would give the Colorado Real Estate Division Executive Director authority to suspend licenses. Groff’s bill also requires mortgage brokers to provide borrowers with all documents at least two business days before the loan is closed. This provision, if enacted, will require mortgage lenders across the country to change current practices. Another bill, HB-1322, introduced in the House by Representative Rosemary Marshall, would prohibit false home loan advertising and would require mortgage brokers to take home buyers’ ability to pay into consideration when recommending loans.

JUNKMAIL BILL ASSIGNED TO BUSINESS AFFAIRS AND LABOR

Two Colorado Representatives introduced a bill on February 15 that calls for creation of a junk mail opt-out list in the state. The bill, if enacted in its present form could make many Realtor marketing/farming business activities illegal (like mailing a neighborhood seeking a property for a prospective buyer, for example. HB-1303 defines bulk mail delivered to 25 or more people as junk. It would require an opt-out process similar to that of the no-call list for telephone solicitors. CAR has taken an oppose position to the bill, which has been assigned to the Business Affairs and Labor Committee but has not been scheduled for a hearing yet. According to the bill’s sponsor, freshman Representative Sarah Gagliardi (Jefferson County), junk mail is “an environmental sacrilege” and an invasion of privacy. The following is the title of the bill as introduced. “A Bill For An Act. Concerning the ability of a person to refuse unwanted commercial mail, and in conjunction therewith, enacting the ‘Colorado Junk Mail Opt-Out List Act’ containing exemptions for charitable nonprofit organizations, political organizations, and businesses with which the person has an established business relationship.”

WATER SOURCE DISCLOSURE ISSUE GOES TO CREC

HB 1156 – water disclosure – is the first bill of the year CAR actively opposed. Bill sponsors Rep. Looper and Sen. Gordon, were very willing to listen and work with us. CAR was the only organization opposing the bill – none of our partners took a position on the bill, they were simply monitoring the bill. The result is a bill that supports our position on full disclosure, no liability for any licensee involved in the transaction. And instead of being in statute, the statute now directs the RE Commission to promulgate rules on water disclosure. It will not go into effect until next January along with all of the form changes. The bill passed out of committee 13-0. The bill has been amended. HB 1156 now directs the Real Estate Commission to promulgate rules on water disclosure. It is intended that a declaration will appear in the contract to buy directing the buyer to review the appropriate section of the Seller’s Property Disclosure for the water source and contact information for the source. This is information is required to be provided by the seller and no real estate licensee involved in the transaction is responsible for providing the information nor are they liable if an “alleged inadequacy” is claimed by the buyer.