Senate Bill Seeks To Corral Foreclosures and Mortgage Brokers

The Senate State, Veterans, and Military Affairs Committee has approved a bill by a 3-2 vote to regulate mortgage brokers and require they get a license if they want to do business in Colorado.

Senate Bill 203, advanced by Senate President Pro Tempore Peter Groff (D-Denver), was approved on a party line vote. Democratic Sens. Groff, Chris Romer, and Sue Windels voted for the measure, while Republican Sens. Ron May and Dave Schultheis voted no.As April Washington, of the Rocky Mountain News, reports:

Nearly a dozen witnesses testified on behalf of a measure meant to target “predatory lending practices,” reduce a record number of foreclosures in Colorado and crack down on those who prey on homeowners who can barely afford their payments.

The Rocky Mountain News quotes Sen. Groff as saying, “We’re trying to catch the bad actors. We’re trying to figure out a way to corral the growing foreclosures swamping the state.”

I contacted the offices of Sens. May and Schultheis seeking comment by the Senators, but did not yet receive a reply.