Colorado

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Colorado - January 19, 2007

LAWMAKERS WILL ADDRESS FORCLOSURES AND LENDING PRACTICES

Legislative leaders have been very clear that they will introduce (several bill are already under consideration) and pass legislation this session to address the extremely high foreclosure rate in Colorado. In December, Colorado again had the highest foreclosure rate in the nation. Legislators are almost certain to go after third party mortgage brokers, predatory lending, subprime lenders, and appraisers in their efforts to protect Colorado’s homebuyers. Even as legislators ponder various bills, the Colorado Division of Housing Director, Kathi Williams is processing complaints and the Colorado Real Estate Commission Executive Director, Erin Toll, has filed charges against several Colorado appraisers and is aggressively pursuing more enforcement authority. State Attorney General, John Suthers says he’ll seek stronger curbs on predatory lending and appraisal fraud. Actions taken by lawmakers and regulators are also likely to alter existing Realtor®/lender/appraiser relationships and practices. It is still too early to say exactly what form legislation will take before gaining sufficient votes to pass in both houses of the General Assembly.