Jeff Rickard

What is happening in the mortgage business these days as a result of the rising foreclosure rates and the increase in Colorado’s fraudulent loan rankings?

The answer is “a whole lot”! On Friday June 1^st, 2007 multiple House and Senate bills were signed into law by the Governor. These bills are an attempt to make sure that the consumer is protected and fully educated to the loans that they are acquiring. They are also making an effort to rein in aggressive and often abused loan qualification guidelines, as well as, mortgage brokers who are not considering the buyers “true” ability to qualify for a loan.

Many months ago a bill was passed that required all mortgage brokers to be registered with the Division of Real Estate, this bill did have an exception to the rule that allowed employees of FHA lenders and correspondents to be exempt from the process. That has now changed, that exemption has been removed. So all loan officers are now going through the process of registration. That includes fingerprinting, background checks and posting a $25,000 bond. Loan officers from national bank firms are still exempt from that process. Continue Reading »