Colorado Mortgage Fraud Law Passed The House - $75,000 Mandatory Minimum Fine

According to Justin R. Morton, State Government Relations Representative for the Appraisal Institute, a Colorado bill establishing mortgage fraud laws passed the House yesterday, April 4. This measure imposes a mandatory minimum fine of $75,000 for residential mortgage fraud and grants the attorney general concurrent jurisdiction to prosecute mortgage fraud. This measure is sponsored by Rosemary Marshall (D) and has not been referred to a Senate committee. In this bill, The General Assembly of Colorado declared that the high rates of mortgage fraud in Colorado were unacceptable; that residential mortgage fraud shall not be tolerated; and that the goals of Colorado law are to deter residential mortgage fraud and to make the victim whole. The General Assembly of Colorado has determined that:

• Mortgage lending has a significant effect upon Colorado's economy.
• An estimated two trillion five hundred billion dollars in mortgage loans were made in the United States in 2005;
• an estimated eighty percent of reported mortgage fraud involves collusion by industry insiders; and
• Colorado's per capita incidents of mortgage fraud is one of the ten highest in the nation.

Thanks to Gary W. Grantham ,Cañon City, CO www.granthamappraisal.net for the story.

To read the full bill - Click here.

Questions or concerns can be directed to: Justin R. Morton , State Government Relations Representative - AI, 122 C Street, NW, Suite 360, Washington DC 20001 Tel: (202) 298-5593 Appraisal , Real Estate , Appraiser , USPAP , RESPA