Industry News

Colorado enacts bills to combat mortgage fraud, foreclosures

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Colorado Gov. Bill Ritter has signed five bills into law that are intended to address mortgage fraud and foreclosures. Most of the bills are focused on the conduct of mortgage brokers, who will also be required to obtain licenses from the state. Colorado lawmakers, with the approval of the governor, are also requiring title insurance companies to help pay for increased oversight of the industry. "Colorado has one of the highest foreclosure and mortgage-fraud rates in the country," Ritter said in a statement accompanying his approval of the bills. "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." SB 203 requires that mortgage brokers meet minimum training, testing and continuing education requirements in order to obtain licenses, which are good for three years. Colorado had previously required mortgage brokers to register but imposed less-stringent ...