If signed bill could regulate mortgage companies | SummitDaily.com

If signed bill could regulate mortgage companies

GREELEY – Colorado’s lightly regulated mortgage industry could face much closer monitoring if Gov. Bill Owens signs the Mortgage Brokers Registration Act.Without regulation, Colorado’s foreclosure rate has risen to fifth in the nation, according to The Greeley Tribune.Owens has not said whether he will sign the bill. Real estate agents say even if he does it won’t solve the whole problem.”Part of the concern we have is that mortgage brokers are the only part of the real estate transaction that’s not regulated,” said Scott Meiklejohn, executive director of the Colorado Association of Mortgage Brokers, an agency that has worked for eight years to pass the legislation. “Consumers assume we are and that makes it very dangerous.”The refinancing boom started in the 90s has making things worse.”We were the stockbrokers of the ’90s when the market was booming,” said Tom Beck, co-owner of Lighthouse Lending in Greeley. “Everyone thought the mortgage industry was a get-rich-quick scheme. Unfortunately, now, there is less business and, as the pie gets smaller, there are a lot of people who are becoming more desperate to find a way to write a mortgage, and they’re pushing envelopes and flat-out doing some illegal things to make something work.”Regulation is expected to weed out brokers who may have a record of financial fraud.”What will happen now is that we have your name on a list, and there will be a place that someone can actually call and complain about you, and there will be someone keeping track of complaints,” said Rep. Val Vigil, D-Thornton, who sponsored the bill. “That in itself, knowing that people can report you and someone does have your name, should suffice.”The bill also would require mortgage brokers to post a $25,000 bond.

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