Press Release- Jun 01, 2007
OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE:
FRIDAY, JUNE 1, 2007
Contact:
Evan Dreyer, 720.350.8370
Maj. Renee Cunningham, 720.226.5553 cell
GOV. RITTER SIGNS 48 BILLS, INCLUDING MORTGAGE FRAUD AND FORECLOSURE PREVENTION LEGISLATION
Total of 48 bills signed today, including smoke-free casinos
Joined by legislative sponsors, consumer-protection advocates and mortgage brokers, Gov. Bill Ritter today signed a tough new package of bills into law aimed at stemming Colorado's rising tide of residential-property foreclosures and mortgage fraud.
Gov. Ritter signed a total of 48 bills today.
"Colorado has one of the highest foreclosure and mortgage-fraud rates in the country,¿ Gov. Ritter said at Brothers Redevelopment Inc., which runs the Colorado Foreclosure Hotline through the state Division of Housing. "We're on pace to log another 37,000 foreclosures this year, which was up about 30 percent from 2006, and that was up 30 percent from 2005. Those are just staggering numbers.
"But the good news is that these bills will help stem the tide by setting standards for mortgage brokers, by prohibiting predatory lending practices and by protecting consumers in Colorado."
The bills are:
- HB 1322 (Marshall/Groff), "Mortgage Fraud Prevention Act"
- SB 85 (Veiga/Massey), "Protect Consumer Real Estate Transactions"
- SB 203 (Groff/Marshall), "Mortgage Broker Licensing"
- SB 216 (Veiga/Marshall), "Mortgage Loan Acts Practices"
- SB 249 (Veiga/Rice), "Real Estate Title Escrow Settlement"
"This is a great day for the state of Colorado," said state Rep. Rosemary Marshall, who championed the bills through the legislature. "This is the most comprehensive package of foreclosure-prevention and mortgage-fraud prevention laws in the country."
"These bills will make a substantial difference in the lives of people across the state," said Sen. Peter Groff. "These are among the most important bills that I have helped pass in my time in the legislature." Denver City Council President Michael Hancock also participated in today's signing ceremony after advocating on behalf of the bills during the legislative session.
"The next step will be educating consumers about how best to use the mortgage products available on the market," Hancock said. "Our goal is to make sure the American Dream doesn't turn into the American Nightmare."
Gov. Ritter today also signed the following bills:
HB 1040 (Stephens/Kopp), "Warrants and Bonds for Illegal Immigrants"
HB 1081 (Marostica/Tochtrop), "Powersports Motor Vehicle Dealers"
HB 1117 (Primavera/Gordon), "Motorcycle Helmet Requirement"
HB 1157 (Gracia/Veiga), "Real Estate Foreclosure"
HB 1183 (White/Isgar), "Nursing Facility Reimbursement Study"
HB 1198 (Pommer/Johnson), "Inspection Consumer Services Agriculture"
HB 1228 (C. Gardner/Shaffer), "Renewable Fuels"
HB 1234 (M. Carroll/Tochtrop), "Public Notice Insurance Rates Increase"
HB 1238 (White/Tapia), "Small Attendance Center Aid"
HB 1244 (Peniston/Williams), "Education Gifted and Talented Students"
HB 1248 (Benefield/Kester), "Drug and Alcohol After-School Programs"
HB 1249 (Primavera/Spence), "Regulate Movers Household Goods"
HB 1256 (Massey/Williams), "In-State Tuition Economic Development Incentive"
HB 1269 (McGihon/Gordon), "Smoke-Free Casinos"
HB 1272 (Rice/Morse), "Cold Case Team in CBI"
HB 1323 (Green/Gordon), "Corps & LLCs Under FCPA"
HB 1342 (Jahn/Tapia), "IPD Methods and Public Projects"
HB 1355 (McGihon/Hagedorn), "Determine Small Employer Carrier Premium"
HB 1359 (Buescher/Fitz-Gerald), "Accelerated Use of Strategic Contribution Fund Moneys"
HB 1360 (Massey/Shaffer), "Blue Ribbon Commission Health Care Reform"
HB 1362 (Levy/Morse), "Common Interest Declaration Plat Map"
HB 1363 (M. Carroll/Tapia), "Defendant Hearing Terminate Criminal Action"
HB 1364 (Rice/Pommer), "Life Insurance Sales Military Personnel"
HB 1365 (Hicks/Morse), "Challenger Learning Center PERA Employer"
HB 1366 (Soper/Tochtrop), "Workers' Comp Construction Contractors"
HB 1367 (Witwer/Shaffer), "Revisor's Bill"
HB 1369 (Stafford/Morse), "Continue Inmate Application Assistance"
HB 1370 (McGihon/Boyd), "Coordinated Care Pilot Program"
HB 1372 (Curry/Isgar), "Severance Tax Operational Account Reserve"
HB 1373 (Pommer/Johnson), "State Employee Salary Cap Adjustments"
HB 1376 (Garcia/Shaffer), "Precinct Caucus Day in Presidential Year"
HB 1377 (Pommer/Gordon), "Higher Ed and State Retirement Plans"
HB 1378 (Curry/Penry), "Retirement Group Special License Plates"
SB 8 (Taylor/Curry), "Expand Water Efficiency Grant Program"
SB 57 (Veiga/T. Carroll), "Regulate Debt Settlement Services"
SB 83 (Tupa/Weissmann), "Conduct of Elections"
SB 96 (Spence/T. Carroll), "Theft From At-Risk Individuals"
SB 222 (Windels/Riesberg), "Statutory Transfers Capitol Construction"
SB 234 (Gordon/Levy), "Voting By Mail"
SB 240 (Tapia/Buescher), "Capital Construction Fund Transfers"
SB 253 (Schwartz/Sonnenberg), "Stabilize Oil & Gas Production Revenues"
SB 256 (Shaffer/Madden), "Uninsured Motor Vehicle Insurance"
SB 263 (Tapia/Buescher), "Capital Construction"
Here is a summary of the foreclosure and mortgage-fraud bills:
HB 1322, Measures to Prevent Mortgage Fraud (Marshall/Groff) Expands the current regimen of registration for mortgage brokers by regulating the behavior of mortgage brokers and others involved in residential real estate transactions. Brokers must act for the benefit of the borrower, including making reasonable inquiry into the borrower's financial situation and using best efforts to obtain a loan that takes into consideration the borrower's situation.
SB 85, Protect Consumer Real Estate Transactions (Veiga/Massey) This bill addresses the relationship between mortgage brokers and real estate appraisers. Brokers are prohibited from trying to influence the judgment of a real estate appraiser through coercion, intimidation, or compensation.
SB 203, Mortgage Broker Licensing (Groff/Marshall) The bill creates the "Mortgage Broker Licensing Act." Brokers must now be licensed by the Division of Real Estate; must get adequate training, testing, and receive continuing professional education; and are now prohibited from engaging in 24 specific activities (misrepresentation, fraud, conflicts of interest, and obligations to the consumer). A broker who has had his license revoked for violating this legislation would not be eligible to get re-instated unless he provides full restitution to those individuals he has harmed.
SB 216, Mortgage Loan Acts Practices (Veiga/Marshall) Imposes on a mortgage broker a statutory duty of good faith and fair dealing toward a borrower. These duties include:
- Not to recommend the borrower to enter into a transaction "that does not have a reasonable, tangible net benefit to the borrower" considering his circumstances.
- To make reasonable inquiry into the borrower's financial circumstances and use best efforts to obtain a mortgage loan taking those circumstances into account.
- Not to engage in a pattern or practice of providing mortgage loans based on acquiring the foreclosure or liquidation value of the collateral without regard to ability to repay, or entering into a loan transaction knowing there was no reasonable probability of repayment by the borrower.
SB 249, Real Estate Title Escrow Settlement (Veiga/Rice) Directs the Division of Insurance to provide annual reports to the JBC and other specified legislative committees, and to post on the DOI website, a statistical report of the number of enforcement actions taken, the market trends associated with title insurance and real estate transactions, and consumer complaints generated by market analysis, investigation and enforcement efforts regarding title insurance.