On April 1st, after having described the need for the Colorado Mortgage Accountability and Housing Stabilization Act, Representative Williams sent an email to those interested in its fate. In that email, she promoted her previous legislation around foreclosures and presented herself as an advocate on this issue. I subsequently responded with a short analysis of each of the bills she sponsored, shown below in red. Updated comments are shown in blue.As the State Representative of House District 7, one of my top priorities has been to address the mortgage foreclosure crisis that has hit our country and state, and particularly HD 7 the hardest with predatory lending. Since being elected in 2009, I have sponsored or co-sponsored the following legislation in an effort to help resolve the problems created by this crisis:HB10-1084 Foreclosed Property Volunteer Cleanup Liability
This protects people cleaning the property. While good for the neighborhood, it brings no protection for the homeowner against improper behavior by the banks.
HB10-1240 Residential Foreclosure Deferments
While providing homeowners proper notification that foreclosure proceedings will occur at the Rule 120 hearing, this does nothing to protect the homeowner against a foreclosure with any of the problems dealt with in HB13-1249.
Recently, Attorney General Suthers has been investigating foreclosure law firms in Colorado for collusion to overcharge for the notices required by this bill. The firms have been accused of charging five times the average price of posting such notices, making $millions per year.
HB10-1249 Expedited Residential Foreclosure Sales
While this bill helps to sell properties destined for blight, it does nothing to address foreclosure by banks than are not the actual holder of the mortgage, as addressed by HB13-1249.
HB11-1023 Continue Foreclosure Deferment Program
Continuing the Colorado Foreclosure Hotline (CFH) and helping Coloradans defer foreclosure is a great aim. It has been the experience of most all the people I know of who have called the hotline that they are directed to work with their bank on a modification, putting them in to the process by which dual tracking occurs; repeated (often 10 times or more) requests are made for the same documentation by the person supposedly helping them with the modification; and foreclosures are done despite the homeowner attempting in good faith to work out a modification. See the CFH document in which they talk about training for counselors with the Kansas City Federal Reserve Bank (conflict of interest much?): http://www.coloradoforeclosurehotline.org/LinkClick.aspx?fileticket=KGPksDi0YjY%3D&tabid=100
HB11-1136 Fund Foreclosure Prevention Counseling
This bill again supports the CFH, and the Attorney General’s funds are TO BE used to assist homeowners. How much support they will provide to help the number of people needing assistance to deal with questionable and unnecessary foreclosures remains to be seen (see https://www.coloradoattorneygeneral.gov/press/news/2012/10/18/attorney_general_announces_100_percent_5117_million_foreclosure_prevention_eff)