REP. MILLIE HAMNER AND OTHER LAWMAKERS SIDE WITH BANKS!!
Colorado foreclosure bill killed in committee
In a bipartisan vote, a measure letting homeowners facing foreclosure challenge a bank’s right to do so died in a legislative committee Thursday.
Rep. Beth McCann, D-Denver, offered HB1249, which mostly sought to codify into state law federal rules that prevent banks from a practice known as “dual tracking,” where a foreclosure can occur while the loan is being modified.
But it also took on current law that allows banks to foreclose without the need to prove they have that right. Most do, but a state law loophole allows foreclosures based solely on a lawyer’s assertion their banking client holds the mortgage.
The House committee on Business, Labor, Economic and Workforce Development killed it 9-2.
“The bill simply doesn’t solve the issues we heard about tonight,” Rep. Millie Hamner, D-Frisco, said.
After a three-hour hearing, a disappointed McCann said she’d return next session with a similar effort. She lost one last year as well.
“The bill was not designed to stop foreclosures,” McCann said. “It is to protect homeowners from needless foreclosure.”
Because mortgages are often sold on the secondary market, and Colorado doesn’t require banks to record those transfers, homeowners are confused when the foreclosing bank is different than the one that loaned them the money to buy the house.
“Legislators nearly gutted our rights by stopping assignments in our public records,” homeowner Marcie Jacobs testified. “We’ve made a mess.”
Financial groups said the bill created a conflict with a new federal Consumer Financial Protection Bureau.
“We find the bill troubling on several aspects,” said Jenifer Waller, vice president of the Colorado Bankers Association, “It’s flawed on one key concept: that lenders wish to foreclose in the first place.”
David Migoya: denverpost.com
Colorado foreclosure bill killed in committee
In a bipartisan vote, a measure letting homeowners facing foreclosure challenge a bank’s right to do so died in a legislative committee Thursday.
Rep. Beth McCann, D-Denver, offered HB1249, which mostly sought to codify into state law federal rules that prevent banks from a practice known as “dual tracking,” where a foreclosure can occur while the loan is being modified.
But it also took on current law that allows banks to foreclose without the need to prove they have that right. Most do, but a state law loophole allows foreclosures based solely on a lawyer’s assertion their banking client holds the mortgage.
The House committee on Business, Labor, Economic and Workforce Development killed it 9-2.
“The bill simply doesn’t solve the issues we heard about tonight,” Rep. Millie Hamner, D-Frisco, said.
After a three-hour hearing, a disappointed McCann said she’d return next session with a similar effort. She lost one last year as well.
“The bill was not designed to stop foreclosures,” McCann said. “It is to protect homeowners from needless foreclosure.”
Because mortgages are often sold on the secondary market, and Colorado doesn’t require banks to record those transfers, homeowners are confused when the foreclosing bank is different than the one that loaned them the money to buy the house.
“Legislators nearly gutted our rights by stopping assignments in our public records,” homeowner Marcie Jacobs testified. “We’ve made a mess.”
Financial groups said the bill created a conflict with a new federal Consumer Financial Protection Bureau.
“We find the bill troubling on several aspects,” said Jenifer Waller, vice president of the Colorado Bankers Association, “It’s flawed on one key concept: that lenders wish to foreclose in the first place.”
David Migoya: denverpost.com