Only two states in the U.S. do not have licensing laws for lenders, Alaska and Colorado.
Amazing to think as progressive as Colorado is when it comes to setting trends in real estate, we let the people who handle the biggest transaction of our lives run around with all that personal information on us and there is no training, no liability, no requirements no nothing to be a lender.
Yes, anyone can wake up in the morning and decide to become a mortgage lender or broker.
That is very scary!
The fact is we have lots of regulation, rules and guide lines. The trouble is we have little if any enforcement.
If Colorado mortgage lenders were licensed at least there would be accountability if they did a consumer wrong. They could lose their license and livelihood (assuming they actually had one) if they were unethical.
As things stand now, it’s really tough to tell the good guys from the bad.
I generally work only with local lenders, those I know I can count on to deliver the funding on time. Recently, there was an instance when the lender came back to the purchaser (not my purchaser) with a much higher rate than had been initially agreed upon. The buyer did nothing to change their financial situation, but yet the lender couldn’t deliver the loan with the numbers as promised. He could deliver it at a higher rate…duh!
Of course these situations tend to happen on the eve of closing. The buyer was in a bind, the lender knew it. When the buyer felt the push, he developed a very strong backbone and told the lender he wouldn’t accept the new terms.
Guess what the lender said…”What are you going to do? Walk away from your earnest money?”
The suddenly wise buyer said, “YES!”
And he did. Most buyers don’t have the luxury of such a choice. Good for him.
Bully on the bad lender, scum bucket….he deserves to hang by the toe nails over a bucket of vinegar.
The consumer should be treated honestly with dignity and respect…first and foremost.
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
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