PARTNERSHIPS – WHAT IS DENVER DOING

The creation of Denver’s Foreclosure Task Force was the first step locally to begin a comprehensive and collaborative evaluation on foreclosure problems. The Colorado Division of Housing 2006 Foreclosure Report stated that Denver along with Adams, Weld, Arapahoe, and Boulder Counties reported the highest foreclosure filings per household. Denver alone reported 1 in 47 households in foreclosure. Statewide, there were approximately 1 in 58 households in foreclosure compared to 1 in 75 in 2005. From 2005 through 2006 foreclosures increased 31% from 21,782 to 28,435 and between 2003 and 2006, foreclosures increased by 110% from 13,575.[1] From 2005 to 2006, Denver’s foreclosure rate increased by 14%. In the first quarter of 2007, Denver reported a total of 1,940 foreclosures, a foreclosure rate of 1 in 127; and the City is anticipating a total of 7,760 foreclosures by the end of the year. As reported by Colorado’s Foreclosure Hotline, 2,500 calls from Denver were generated to the hotline by citizens regarding foreclosure issues. The Foreclosure Task Force reviewed what Denver and the State of Colorado had already begun to do in order to identify other foreclosure measures and to support the progress of programs already in place. In 2005, the state concentrated on foreclosure fraud and began steps to legislate against mortgage fraud activities and to create enhanced consumer protections.

In July 2005, Colorado Attorney General John Suthers formed a Foreclosure Fraud Task Force to remove Colorado from the FBI’s list of top ten hot spot states for mortgage fraud activities. The state task force focused on public awareness, outreach, and key legislation during the 2006 General Assembly. The following bills were signed by Governor Owens, enacting new regulations and consumer protections:

· House Bill 06-1387: Sponsors of the bill were Representative Garcia and Senator Veiga. The bill modified and clarified law governing real estate foreclosures, including issues related to public trustees and foreclosure processes, including foreclosure proceedings, notice, cure periods, sales, withdrawal and termination, and redemption timelines.
· House Bill 06-1161: Sponsors of the bill were Representatives Vigil and Massey and Senator Veiga. The bill established regulatory requirements which include mandatory mortgage broker registration including recordkeeping of complaints and disciplinary actions against mortgage brokers. In addition, the legislation created the Mortgage Broker Registration Cash Fund to collect fee revenue.
· Senate Bill 06-71: Sponsors of the bill were Representative Massey and Senator Veiga. The legislation established the Colorado Foreclosure Protection Act and prohibits certain deceptive business practices and provides homeowners with additional protection measures from losing their home to predatory investors.
The Colorado Foreclosure Prevention Task Force created and launched the Foreclosure Hotline (1-877-601-HOPE) on October 12, 2006. The hotline connects borrowers with non-profit housing counselors to provide individuals with options when facing foreclosures. Counselors also facilitate communications between lenders and borrowers.
2006 Colorado Division of Housing Foreclosure Report