According to the Denver Post, the Colorado Attorney General's Office is investigating lending and advertising practices at four mortgage brokerages which is an expansion of a probe that begun last year.
Late last year, the state sent 17 subpoenas to brokerages and opened full investigations into four, according to Nate Strauch, spokesman for Colorado Attorney General John Suthers. The companies were not named.
Officials state that the main focus of the investigation is to look into companies that advertise low teaser interest rates, tout minimum-loan-payment plans and use confusing terms to describe their loans.
Colorado had the highest rate of foreclosure filings per household of any state last year, according to RealtyTrac of Irvine, Calif. The state is now No. 2.
The state's investigation could result in the filing of civil lawsuits against mortgage brokers found to have violated the Colorado Consumer Protection Act, Deputy Attorney General Jan Zavislan said in October.
For more information regarding mortgage brokers and what they are allowed to advertise, click the links below:
What is a Mortgage Broker?
What Mortgage Brokers Can Advertise
-- L. Morse
Labels: Forclosure, Mortgage Brokers, mortgages
0 Comments:
Post a Comment
<< Home