And a collective “D’Oh!” rises from Colorado Republicans in the legislature. From The Associated Press:
A Colorado state senator and the mortgage company where he works are being investigated for allegedly misleading consumers by sending out advertising flyers that look like official tax documents, a state official said Wednesday.
Investigators believe Republican Sen. Ted Harvey and American Home Funding-the Greenwood Village company where he works as a broker-violated state laws by sending the ads, said Colorado Division of Real Estate Director Erin Toll…
…The flyer features the Statue of Liberty and Federal Housing Administration notice codes that rate the notification “Urgency: HIGH” and warns that “a call to action is required.” It has a notice in small print on the side that says it’s not a government document…
…Harvey said the notices are no different than those from other financial institutions. He rejected suggestions that he or the company broke the law.
Sure, that sounds bad. But here’s the kicker: Earlier this year Harvey tried to introduce legislation that would have restricted the state’s ability to regulate mortgage brokers.
Harvey said he got into a dispute with the division about a month ago after he proposed legislation that would remove Toll’s authority to investigate mortgage brokers and set up a board, similar to boards in the same division that hear complaints against real estate agents and appraisers. The legislation also would have set up an appeals process. [Pols emphasis]
The dispute escalated when a member of Toll’s staff showed disrespect when he tried to explain his proposed bill, Harvey said. He said he shook his finger in the staffer’s face to get their attention, but he denied trying to intimidate the staffer.
Barbara Kelley, executive director of the Department of Regulatory Agency, Toll’s boss, rejected the proposed legislation in a letter dated Feb. 18, which was obtained by The Associated Press under the Colorado Open Records Act. She told Harvey and other lawmakers that the division is following state law, which requires that a director oversee the mortgage loan originators program, because the board system is too expensive.
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This is a huge face-palm moment.
Glad you agree.
I tossed it as it felt like a scam. (That and a prepayment penalty, I refuse to pay.) predatory to say the least.
one BIG D’oh!
If Ted Harvey is surprised at the disrespect, it’s clear he doesn’t get out much. Politicians, used-car salesmen, mortgage brokers … in the public’s mind, they’re all in the same boat.
Flattery is more than lumping us in the same boat as members of Congress. Some of us deserve our own rowboat.
or he’ll threaten to sue you.
count as a form of insanity? There oughta be a law against making that charge in public.
I’m more concerned that Sen. Harvey tried to remove Erin Toll’s authority to oversee mortgage brokers.
Mortgage brokers weren’t even required to be licensed until a few years ago, and there were some pretty flagrant abuses. There is little doubt the lack of regulation played a role on the mortgage scams we are now all paying for dearly.
Director Toll hasn’t been reluctant to take on special interests protecting the consumer. Several years ago while insurance director she exposed the self dealing and kickbacks that were going on in the title insurance industry (which is a huge consumer ripoff) and even her husband was threatened.
When you have special interests trying to take away a regulators oversight, they’re doing their job (instead of being patsies for the industry being regulated).
Translation: we’re no more slimy than the next guy
than the fake Census forms sent by the GOP. Ah, but you already pointed out they’re no more slimy than the next guy.
I’m sure you can find something more or less equivalent among Democrats, somewhere, if you define equivalence correctly, so that’ll make it all OK. I’ll just state in anticipation of such a result that everybody does it, and wait eagerly for proof that confirms people’s desperate need to find equivalence everywhere.
Oh look, here’s an example of a Democrat sending mail to ask people to vote for him! There we go. All equaled out. [rests easy]
it’s really the government that should stop sending out tax forms that look like mortgage solicitations. Stop getting in the way of the private sector.
and complained to DORA both times. I called them the first time and asked for the marketing and or compliance guy. As if. Then I field a written complaint. WHen the second came a month later, I couldn’t believe it.
That thing was misleading in more ways than one- and I’m not going to elaborate here because I’m still hoping that DORA uses my complaints and I want to keep the details I provided unpublic so far.
Mortgage brokers weren’t all evil. And not the biggest offenders when it came to abusive lending practices in CO, even pre-licensing. But now, there is virtually no way to eliminate the CO rules (new federal rules make it a really stupid move) and no state still has un-supervised mortgage lenders.
Director Kelly is exactly correct.
Harvey is dead wrong. And his company deserves even more investigation from the newest originator right up to the highest director (really well connected group of people) : who knew or authorized what and when did they know it? If not Erin Toll, then AG Suthers.
You’re a good citizen. Thanks for doing this.
It’s not the first time – sadly, I’m sure it won’t be the last.
I have sent them as well.
We all need to do it more. The regulators don’t know about these anti consumer practices unless we tell them.
BTW weren’t you a mortgage broker.
Harvey makes a claim of disrespect (with he or the AP providing no details) but somehow finger wagging is a respectful and mature response?
So hopefully his fellow Senators will all start doing it to him.
We can only hope.
… from the loan sharks, where they attack the bill seeking to stop 300%-plus interest rates from payday lenders. Not ONCE do they mention that they’re payday lenders; instead they keep the nature of their business mysteriously secret.
The douchebags. Like Harvey’s company.
First of all thanks a lot for the great and informative article. I have to do a little research in my university about the paycheck loans and mortgages situation in our country so I have been searching for some valuable information in your website. I am so glad that I have found this your post because reading it I have known so many new facts about mortgage fraud, which I have not known before. Well, I will definitely bookmark your website because I see that it is full of various useful information about everything. Thanks a lot one more time for the useful stuff and keep up publishing these essential news in the nearest future too.
I have to admit that I have not heard anything that Harvey has investigated for Mortgage Fraud because he wants to reduce industry regulations. Very smart decision I think and it would be really interesting to read more publications about this event. I hope that I will manage to find it in your website. Thanks a lot for the useful and essential news and I will be waiting for more such great publications in the future. Respectfully, Greg Putton from Alaska insurance
I’m really fed up with the continuing ignorance of the Congress and the government with introducing proper legal regulations to solve these kind of problems once and for all. Seriously, even with all the lobbying, can’t someone do something about this? online payday loans