CAMB 2007 Convention

NAMB West
NAMB West

Response from DRE

The Division of Real Estate has been notified of possible market disruptions in the mortgage industry regarding specific mortgage products.  The products of concern include, but are not limited to, stated and lower documentation type products.  These concerns stem from provisions included in House Bill 1322 and Senate Bill 216, specifically section 12-61-904.5 (1)(b), Colorado Revised Statutes.  

Upon initial review, the Division of Real Estate has no reason to believe that stated and lower documentation type mortgage products are prohibited by these provisions.  Accordingly, the Division of Real Estate does not intend to promulgate rules to prohibit these types of products.

The Division of Real Estate is actively addressing this issue and seeks to provide a formal position statement as soon as possible.  Please continue to monitor the Division of Real Estate's website at:

http://www.dora.state.co.us/real-estate/index.htm and future e-mail notifications.

Thank you,

Colorado Division of Real Estate

Comments from DRE

The Division of Real Estate (DRE) reports that they will have to create 12 new rules to meet all the new requirements for the new laws (listed below). The DRE is inviting industry input into the creation of these new rules. At this time, the DRE expects to have the rules and guidelines in place by October of 2007. Please continue to check our site as we will post new information as it becomes available.