Industry News

Colorado unveils real estate fraud-fighting proposals

Contracts for homeowners help forestall foreclosure abuse

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New mortgage fraud-fighting legislation, including mandatory written contracts for foreclosure consultants and equity investors, will be introduced in Colorado based on the findings of its mortgage fraud task force, a state official said Thursday. "Earlier this year, the FBI identified Colorado as one of the top ten mortgage fraud 'hot spots' in the country," Colorado Attorney General John Suthers said. "This is unacceptable and thanks to the work of the Mortgage and Foreclosure Fraud Task Force, we are making efforts to remove Colorado from this list." Mortgage fraud is on the upswing nationally, with the number of suspicious activity reports to the Federal Bureau of Investigation in 2004 almost triple those in 2003, according to a report the FBI released in May. Around 15,000 such reports were filed in 2004, and more than 20,000 in 2005. According to the Federal Financial Institutions Council, up to 10 percent of all mortgage loan applications in the $3 trillion annual U....