Posted: Tue Jan 09, 2007 8:47 pm Post subject: New law to deal with mortgage fraud and deceptive brokers
Hi all,
Some new laws and regulations are being proposed by different states for the benefit of borrowers.
The Attorney General John Suthers have set up a new law in Colorado in order to get rid of appraisal fraud and mortgage brokers who are into deceptive trade practices.
The number of foreclosures in Colorado has soared up for a number of moths last year. Experts therefore hope that this law may be helpful in reducing the foreclosure rate in the state.
The law is expected to deal with problems of appraisal fraud, and charges penalty against mortgage brokers who indulge into illegal practices.
Yeah, under the law, the Division of Real Estate will have the right to deny or cancel the registration of a mortgage broker who has come across court action for deceptive practices.
From January 1, mortgage brokers in Colorado have been for the first time asked to register with the state.
Let's see if the new law can stop brokers/realtors/lenders from influencing appraisers to increase the appraised value of the borrower's home. _________________ Procrastination is the enemy of your financial sucess
Posted: Wed Jan 10, 2007 2:30 am Post subject: Proposal to curb fraudulent appraisal and broker activities
Hi,
It's not yet a law but a proposal put forward by the Attorney General. But if it becomes a law, then it will be helpful for getting rid of fraudulent activities in the real estate as well as mortgage industry.
The best aspect of the law is that it leaves none and includes everyone involved in the real estate business – be it broker, loan officer, real estate agent and consumers.
The new legislation if implemented will certainly be a good move. Under this new legislation it would be possible to criminally prosecute violators and they will have to face civil liability as per the Consumer Protection Act (CPA). First such offense will be considered a misdemeanor while further repetition of such act will be treated as felonies.
The CMLA (Colorado Mortgage Lenders Association) is in favor of such legislation as is evident from what Chris Holbert (President of CMLA) has said -
Quote:
"An inflated appraisal defrauds the funding lender. It can also be bad for the consumer. We are very supportive of the bill."
If such industry support continues I think Colorado won't remain on top of the list of states having highest number of foreclosures and the situation will improve.
helping_user
