It is hard to believe that 2007 is already over 8.3% behind us. Seems that I was just celebrating the holidays and digging out of all that wonderful Colorado snow. Now, Valentine’s Day is arriving faster than an on-coming train.

I would like to thank every professional, affiliate and associate member who has supported CAMB through one of its most remarkable years on record.

CAMB’s efforts in 2005 and 2006 led to groundbreaking legislation. As of January 1st, 2007, Colorado mortgage brokers are required to submit to a criminal background check, acquire a $25,000 surety bond and register with the Division of Real Estate to practice their chosen profession. While the new law is minimally invasive, it does provide a degree of consumer protection by preventing felons from practicing in Colorado when they find their practices can’t be continued in other states.

Many of us would rather not have the government telling us what to do. We would rather police ourselves. Certainly, the new law is not everything CAMB had hoped for. But, the reality is that becoming subject to some form of legislation was inevitable and thanks to the efforts of CAMB’s leaders, the Mortgage Broker Registration Act, while not everything CAMB had hoped for, is a minimally invasive start. The sunrise application submitted by CAMB neither asked for, nor expected the introduction of a surety bond requirement. CAMB has openly opposed bonding based on the irrelevance for its intended purpose. Having said that, we are pleased that through efforts including those of CAMB's leadership, the $100,000 bond that was originally proposed in the DORA (Department of Regulatory Agencies) report was reduced in the final bill to $25,000. At least with the lower amount, the bond becomes a barrier to entry for fewer applicant’s whose only issue is credit. CAMB still has work to do to make sure that applicants with minimal experience and some credit challenges have the opportunity to work in their chosen industry without suffering an unreasonably high cost of entry. To that end, CAMB has been diligent in finding reasonable alternative bond sources for applicants. The CAMB web site identifies several bond providers who have more liberal credit requirements. For those applicants who have been denied a bond you can go to the CAMB web site and report it so we can capture the data for use as we champion changes in the 2006 law.

While this next activity may receive a mixed reaction, CAMB is also beginning a campaign to remove the registration exemption for FHA mortgagees. We believe that too many individuals have been excluded by a misunderstanding in the FHA structure. In order to make the protective nature of the law most comprehensive those who do FHA business should also been included in the registration process. Since this may be a controversial subject, we would really like to know how CAMB members feel about this issue. If you have a strong feeling, for or against, the idea of minimizing exemption so the industry has comprehensive line of sight to everyone who participates in the mortgage loan origination process, we would certainly like to hear from you. Simply send an email to info@camb.org and give us your opinion. We’ll accumulate your views and consider them in our thinking, as well as report back to you.

While the new law is not popular with everyone, it seems that it was inevitable, that Colorado could not continue to be one of only two states without some form of direct legislative attention. This inevitability seems especially true given the incredible and largely undeserved connection that appears to have been drawn between mortgage brokers and the occurrence of fraud, abuse and foreclosure.

With respect to that largely inappropriate connection, let me assure you that CAMB’s leadership is preparing to tackle that public defamation head-on. We plan to challenge that concept with fact-based data that we hope will once and for all drive home the understanding that we, the mortgage brokers, are not to blame for even a small fraction of the foreclosures. CAMB believes fervently that any fraud and abuse is inexcusable and should be dealt with directly and with the maximum civil and criminal penalties that can be mustered. But we also believe that it is incredibly important for our industry to shed the image of being at the center of all that is evil in the industry. More over we would like to make the public aware that much of the foreclosure volume is driven by many more American families having a shot at the American dream! That is not an excuse to ignore and do the best we can to manage foreclosure, but rather a statement that we need to define the problem on a fact basis, find actionable causes and pursue them. Not just blame groups for a problem that has not been well defined in the first place.

Your CAMB leadership has made tackling this issue one of the focuses for 2007.

We will be asking for your help. Our legislators are in session and only have until May 20th to work their agenda. During that time, CAMB will be seeking your assistance at the grassroots level to help us influence outcomes that will advance (y)our legislative and education agenda.

2007 is the first year we have operated under a law specific to the Colorado mortgage broker industry. This marks the opportunity for, as well as, the need for many of you to become involved. Please do not sit back and watch. Contact one of CAMB's leaders, board members or committees and get involved. Your industry needs your support and CAMB welcomes differing points of view, open and passionate minds and we invite you to help us shape the your future.

Future messages will focus on specific issues. In this initial message I wanted to give a more general picture of where we have been and what we have on our plate for the next twelve months. Again, thanks to everyone who trusts me enough to allow me to help guide the association as we pursue our vision, mission and goals. Your association has gathered a team of professionals who care passionately about serving you, Colorado consumers and the Colorado mortgage industry in general. Let’s give them all the support we can as they help shape a better home financing engine in this beautiful state!

Thank you – Hope to meet you in 2007.