Colorado Mortgage Law Archives

July 7, 2008

Colorado Cleaning "Mortgage" House -- Find out who's been naughty or nice!

The Colorado Division of Real Estate is working tirelessly with a proven team of mortgage experts (such as famed mortgage industry watchdog Jim Spray...just google him!) to be sure mortgage brokers in Colorado follow the new State mortgage well as the Federal ones.

Citations are going down left and right--- less competition!

As a quick note, all mortgage brokers must be licensed as of January 1, 2008 as well as hold a $25,000 surety bond and errors and omissions insurance too in order to be in compliance.

By December 31, 2008, all of them have to have also taken a certified 40 hour education course (I was one of the first ones to make it through-- and did pass-- I'm now in full compliance realsm.jpg) covering all the laws as well as practical matters (doesn't mean they will still know how to explain a Truth in Lending form or Good Faith Estimate!).

There are some exceptions of course... and those can be found out on the Division's site:

And check your mortgage brokers advertising too--- all mortgage websites, advertising pieces, etc. must now contain the person's license AND the following sweet little piece of verbiage:

To check the license status of your mortgage broker, visit

July 10, 2008

The Right Expectations.... the Mystery Behind the New CO Mortgage Broker Laws

This will help real estate brokers with expectations from their mortgage brokers, as well as help the expectations of buyers/sellers in the loan process---and hopefully cut down on mistakes-- if real estate brokers know what’s going on in Colorado now since January as well as the current “loan climate” in general…

For me, I went inactive with my Realtor(R) license after talking at length to mortgage industry watchdog, Jim Spray, at the Land Title CE class in March--- he’s on Erin Toll’s mortgage broker task force and I decided....

Continue reading "The Right Expectations.... the Mystery Behind the New CO Mortgage Broker Laws" »

February 23, 2009

SELLERS, Reach out to MORE BUYERS by Offering an FHA Loan Sale!

In regular follow up with the Realtors® I work with often, and with some of my clients using the fabulous NEW FHA guidelines for their new home purchases mortgages--- I discovered an unusual situation:

Many of the "For Sale" home listings were NOT saying the home could be bought by a new buyer using an FHA mortgage!

When I asked the Realtors® why the MLS listings were excluding these, I found some serious confusion about what a SELLER might or might not have to do if they offered their home listing to an "FHA buyer".

Unfortunately, there is an enormous--- a HUGE-- amount of misinformation on the internet and elsewhere about FHA backed mortgages. In the past, sellers were required to pay certain closing costs (up to maybe $500) for any new buyer using an FHA backed mortgage on their home sale.

NOT ANYMORE! And not for some time :-).

Simply now: ANY home-for-sale (listed by a private seller FSBO (for sale by owner), by a private seller using a Realtor/Broker, by a seller who themselves already have an FHA backed loan on the home they are selling, by a bank seller (REO), by HUD....etc)--- any seller of a home--- does NOT have to pay ANYTHING towards a new buyer's costs--- NOTHING, NOT A DIME if they don't want to.

The new buyer with a qualified FHA backed mortgage can pay all their own closing costs if they want to. The seller pays nothing.

Now--- the seller CAN pay up to 6% of the CLOSING costs portion (NOT the 3.5% needed for the statutory DOWN PAYMENT amount) for a new buyer using an FHA backed mortgage--- but THEY DON'T HAVE TOO if they don't want to. Period.

Also and by-the-way, MOST of the buyers today are using FHA backed mortgages. Unlike the past where an FHA loan was usually linked to borrowers with "less than perfect credit", today, the FHA backed mortgages often offer lower rates than conventional mortgages and no hassles over an ever increasing mortgage insurance qualification battle.

So sellers, if you want to increase your chance, GREATLY increase your chance of a successful home sale, let your home be sold to any qualified buyer. And tell your Realtor® to list your home that way.

To check on this and other FHA MYTHS, you can call the FHA office: 800-225-5342 and also visit (and follow the links on the FHA logo to the FHA website)...and/or .download this page I copied and put into a PDF about FHA MYTHS

How Do I Know Who to Choose to do My Mortgage?

These days every new borrower (and Realtor® in business wanting a mortgage for their clients!) wants to know how to choose a new mortgage company and/or mortgage banker or broker to put together their mortgage.


"I will definitely keep u in mind, Eileen, for any upcoming clients I may have, you were ontop of it and kept in close communication w/me which I loved!! I would be glad to help any of your future clients."

...Shannon Byrdsong/MetroBrokers-GMAC

With all the new laws causing mortgage companies and former brokers to go out of business, the current economic and banking crisis causing even more drop-out--- and the bombardment of TV and Internet advertising to the general public (most of the ads misleading or wrong!), it's no wonder borrowers have confusion over who to trust and what's going on.

It should DEFINITELY no longer be about "I'll pick whoever will give me the best rate"---- since as of about August 2008, rates are...

Continue reading "How Do I Know Who to Choose to do My Mortgage?" »

About Colorado Mortgage Law

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