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| Colorado is investigating newspaper records to determine if the “super-low mortgage rates” advertised by some loan originators were actually delivered.Colorado Attorney General John Suthers has subpoenaed the Denver Newspaper Agency seeking information about mortgage companies that advertised in the city’s major papers, The Rocky Mountain News and The Denver Post.
Kristen M. Holtzman, Suthers’ communications director, confirmed to MortgageDaily.com that the subpoenas were issued late last week. “It’s an ongoing investigation into practices in the mortgage industry,” Holtzman said in an interview. “The Attorney General is looking at a myriad of factors … including enforcement (of existing laws) and potential fraud in the industry.” The Denver Newspaper Agency handles advertising for both newspapers in the city. Holtzman said Suthers is seeking information on a number of companies, including Mortgage Planning and Lending Specialist Ltd., Jupiter Lending, Mile High Mortgage, CBA Inc., Consumer Mortgage Group Inc., Mortgage Processing Group Inc., Shifrin Inc., Wholesale Mortgage Lending LLC, Vision Title Agency of Colorado and VTA of Mile High. The agency has until Jan. 2 to comply, Holtzman said. Suthers has previously said he wants to “crackdown” on mortgage fraud and investigate companies that advertise super-low rates to deceptively entice customers. Holtzman said she could not divulge much information about the investigation, but she did say that Suthers believes the state’s Consumer Protection Act, which prohibits deceptive trade practices, may have been violated. Leo Shifrin, who is associated with some of the companies under scrutiny, including Mortgage Planning and Lending, said he has done “nothing wrong” and he is “in full cooperation mode” with the attorney general’s office “Our advertising fits all guidelines,” Shifrin told MortgageDaily.com in a voice mail message. “It is very good, legal advertising. “I really, really think this shakeup is a good thing,” he said. “A lot of brokers here in Colorado don’t really advertise fairly. This will even the playing field.” Shifrin acknowledged that his companies have received some complaints lodged with the Better Business Bureau but that “they’ve all been addressed but one.” Colorado has been a hot bed of mortgage fraud. Holtzman said the legislature has enacted tougher enforcement. She predicted the legislature will target appraisal fraud next year. “It’s a huge problem,” she said. Jason Berman, president of the Colorado Association of Mortgage Brokers, said the association supports the crackdown. “CAMB enthusiastically supports any effort by the (attorney general’s) office to enforce the law,” Berman said in an e-mail to MortgageDaily.com. “We feel a stronger emphasis on enforcement will diminish the need to ‘regulate’ Colorado’s fraud and foreclosure problems away. Legislative solutions aren’t the only tools available to curb mortgage fraud.” |
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Patrick Crowley is a feature journalist and blogger for MortgageDaily.com. He is also a reporter, blogger and columnist for The Cincinnati Enquirer. |
