Colorado will start oversight of fast-growing non-bank mortgage companies on Jan. 1
Non-bank lenders are already covered by federal regulations, but the new state law will allow the state to enforce a matching set of requirements. The companies will also have to pay fees to the states totaling about $126,000 per year for the entire industry.
The goal is to let lenders know that “there’s another set of eyes watching their conduct,” said Rep. Mike Weissman, an Aurora Democrat who sponsored the bill along with Sen. Julie Gonzales. “Where there are bad actors, we think that it’s important there are consequences,” he added.
Weiser said that the new regulations weren’t in response to ongoing bad behavior, instead saying they were preventative.
“I want to start with the mantra of constant vigilance. We don’t want to wait for a problem to develop here,” he said.