Loan modifications require mortgage broker license
By John Rebchook, Rocky Mountain News (Contact)
Published November 20, 2008 at 12:05 a.m.
Only licensed mortgage brokers may provide home loan modifications in Colorado under the new Mortgage Broker Licensing Law, the Colorado Division of Real Estate reminded consumers on Wednesday.
The reminder came because of the increased number of complaints the division has received about loan modification companies.
"Any person offering to assist troubled borrowers by modifying the borrower's mortgage terms or conditions must be licensed as a mortgage broker in Colorado. Those operating without a license face steep fines and penalties for noncompliance," said Cary Whitaker, Mortgage Broker Program manager.
The real estate division intends to step up investigations into loan-modification companies as consumers continue to complain about high fees and low results.
These newly formed companies appear to have sprung up in response to the increased demand for solutions to the foreclosure crisis. "Borrowers need to be cautious before spending money on these services. Nonprofit HUD-approved housing counseling agencies are available to provide loan-modification assistance or foreclosure- prevention education, usually at no charge," said Erin Toll, director of the Colorado Division of Real Estate. Consumers can check the license status of mortgage professionals online at dora.state.co.us/real-estate or at 303-894-2166.
Featured
-
Boulder Wildfire
See photos from the Boulder County fire.
-
Legislature Blog
The Rocky's Lynn Bartels and Ed Sealover provide live updates from the Capitol.
-
Rocky multimedia
The news comes alive in our videos and slide shows. Catch up on what's happening today.
-
Who's next?
Complete coverage of the Broncos' search for a new coach.
-
Weekend plans?
Figure out things to do this weekend with the help of our entertainment calendar.
-
Winter Escapes
Your insider’s guide to the copious joys of the coolest season.
-
Sam Adams' Open Mic
Open Mic: Two-man advantage with Avs
-
Bronco Dean's rant
Listen to Bronco Dean's rant on what's next for the Broncos.
-
Live updates
Sign up for mobile alerts and breaking news e-mails to keep up with the latest news.
Post your comment
Registration is required. Click here to create your free user account, or login below.
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.