Wholesaler · Colorado Springs, CO · Member since 2009 · 286 posts · 255 votes
I received an email earlier today about a proposed change to the Colorado statutes concerning hard money lenders. If this passes it will require all hard money lenders to be licensed. Link below.
This is bad news. Is there a strong mortgage broker lobby here that wants to marginalize the private lender?
It's the lenders that take the risk; why do they need a license to do that?
Littleton, CO · Member since 2012 · 4 posts · 0 votes
14y
The rule was overturned by a judge. I believe it happened on December 7th 2011. DORA/BMLO is scheduled to hold a hearing to take place on Feb 15 2012 to discuss the repeal.
Wholesaler · Colorado Springs, CO · Member since 2009 · 286 posts · 255 votes
14y
I would like to read about this more if you may PM or post a link or directions to obtain more information regarding this ruling and the upcoming hearing. Thanks!
Flipper/Rehabber · Anaheim, CA · Member since 2010 · 188 posts · 118 votes
14y
Interesting proposal. Fortunately, even if it did take effect, it would not prohibit lending to rehabbers as well as the use of transactional funding. The proposal specifically states that it applies to residential mortgage loans, defined as: “. . . a loan that is primarily for personal, family, or household use.."
Real Estate Lender · Littleton, CO · Member since 2012 · 32 posts · 15 votes
14y
On December 7th, 2012 the Denver District Court ruled in case number 2011CV2811, "... the Board exceeded its statutory rule-making authority and Rule 1-1-6 is invalid."
The Board of Mortgage Loan Originators (DORA) is holding a public hearing on Feb 15, 2012 at 9AM related to this.
This post is only my personal opinion. I am not an attorney. I make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information.