Mortgage Fraud and the Wild West!
May 15, 2008 by Bob Schenkenberger · Leave a Comment
The rate of foreclosures seems to be linked to a little bit of Mortgage Fraud. Well, I’ll be darned. Who’d of thunk it?
Colorado has ranked in the Top 10 (or bottom 10, depending on your level of cynacism) for foreclosures during many of the past 5 years. Not coincidentally, the Centennial State has been in the Top 10 for Mortgage Fraud, over much of the same time.
Why is this? Maybe Colorado is full of dishonest people, home of the swindler? No, the real truth lies in the fact that Colorado was only one of two states (Alaska being the other) that had ZERO regulation over the mortgage industry.
Recently, this has changed. Mortgage Broker’s now need to be licensed by the state, and there are several new laws, enacted by the Legislature, targeting mortgage fraud and deceptive lending practices. By January of 2009, all mortgage brokers are required to complete educational requirements and pass a state exam, to continue in the business.
A good start, and with the tightening of underwriting guidelines, the “Wild West” that was, will be a bit more tame!
We are happy to refer you to LICENSED mortgage broker’s with whom we are comfortable putting our reputation behind. Please let us know if you would like the names of a couple honest and ethical mortgage professionals!
photo credit: adactio
Bob has been an active REALTOR for 18 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)
Facebook Comments