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HB13-1249 dies on 10 to 1 vote

A message from CBA President and CEO Don Childears


ColoradoAG Suthers discusses CO's portion of national mortgage settlement

HB13-1249, Representative Beth McCann’s foreclosure bill was killed April 11 by the Business, Labor, Economic, & Workforce Development Committee (of the Colorado House of Representatives), with 10 legislators opposing the measure and one supporting it. An amendment to the bill failed on a 9 to 2 vote.

CBA worked hard for a big margin in the hope that this, in addition to last year’s defeat of a similar bill, will discourage a third attempt next year.

The bill was highly concerning for bankers, because a number of its provisions could have severely restricted credit availability in Colorado, driving up the cost for future homebuyers.

Those provisions included:

• requiring lenders to retroactively produce never before required years-old documents – some impossible to obtain;

• moving more of the foreclosure process to the purview of the judicial system, gumming up already bogged-down Colorado courts; and

• allowing interested persons, whether or not they are a direct party to a foreclosure, to challenge foreclosure proceedings and halt the process.

If passed, the bill would have allowed borrowers in foreclosure to stay in properties longer without paying HOA dues or property taxes and without making payments. Worse, the bill could have made Colorado much less appealing to secondary-market buyers.

All of our arguments against the bill as well as the 17 groups opposing HB13-1249 are in a position paper.

Watch Jenifer Waller's testimony on HB13-1249.

It is important to recognize the leadership of Committee Chair Angela Williams (D), and Representatives Tracy Kraft-Tharp (D), Brian DelGrosso (R), Millie Hamner (D), Chris Holbert (R), Clarice Navarro (R), Daniel Nordberg (R), Paul Rosenthal (D), Su Ryden (D), and Libby Szabo (R), each of whom understand that Colorado’s unique foreclosure system is the best in the country. Because it is the only one with objective public officials overseeing an efficient and balanced system, it is the most fair for all parties involved.

Governor Hickenlooper also understood failings of the bill and was helpful during our opposition to it. They all realized the damage HB13-1249 could have inflicted on homebuyers and on Colorado’s recovering economy.

CBA extends a hearty Thank You to each of them – and to you for your help in defeating this bad bill.

It is equally important to thank the lobbying team that worked so hard to defeat this. CBA led the effort and convened numerous allies. Jenifer Waller worked very hard and smart in leading the CBA team of lobbyists. Melanie Layton, one of our contract lobbyists, also did a great job. In addition to the 17 other organizations that joined us in opposition to HB13-1249, the real estate section of the Colorado Bar Association also opposed the bill. Thanks to all.

Read the Denver Post's coverage

  • In Colorado, 7,070 borrowers have benefitted from some type of consumer relief totaling more than $398 million, which on average represents about $56,301 per borrower. A fact sheet summarizing national consumer relief may be downloaded here. Including relief in progress, Colorado’s numbers are approximately $405.3 million with an additional 108 borrowers who could receive final loan modifications by the end of June 2013.
  • As of  May 2013, foreclosure filings have plummeted 41 percent in the first quarter of 2013. Read more.


In June 2012, Ballot Initiative 84 greatly damaging the foreclosure process in Colorado was withdrawn by proponents. After months of intense CBA effort (strategy meetings, educating the media on the foreclosure process and fighting the measure at all levels, including CBA challenging it at the Title Board and the Colorado Supreme Court), the proponents of the initiative pulled out of their campaign to get this bad measure on the November 2012 ballot.

In addition to the above CBA activities, CBA feels its efforts to discourage others from funding the proposal left the proponents with few financial resources, which forced them to conclude they could not prevail. Linked is a simple summary of why this would have been so bad. The proponents, Colorado Progressive Coalition (closely aligned with the Occupy group), said they were switching strategies to pursue changes in foreclosure laws in the 2013 Legislature. CBA was able to block those bills in 2012.

ln 2012, we focused on educating the public to correct the mistaken impression that lenders can foreclose without necessary documentation. That put us in better shape to oppose bad legislative proposals during the 2013 session. While we expected proponents to fail in gathering 87,000+ valid signatures to get the proposal on the 2012 ballot, we believe they realized that they lacked funding, that the Denver Post started to report accurately the documentation we must provide, and that the CPC proposal was flawed and gave us ammunition.

CBA had worked hard to achieve those things: we had contacted numerous potential funders of the proponent’s efforts to explain why the proposal didn’t deserve their support, we met numerous times for many hours with reporters to explain the foreclosure process and the necessary documentation, and we picked apart the proponent’s position with the attached document and a much longer technical review of it. In addition, we pulled together numerous allies to help oppose it, fought the foreclosure proposal in the Colorado Supreme Court, put out an RFP and obtained three excellent proposals for a fall opposition campaign, and helped draft a lengthy professional survey of 600 likely voters in Colorado that was conducted in June 2012 (thanks to our ally the Colorado Association of Realtors).

The survey results gave us insight on which arguments would have worked with voters. On three potential ballot issues appealed to the Colorado Supreme Court in an effort to keep them off of the fall’s ballot, we were successful on two issues (authorize municipalities to own and operate banks (#94) and create a state owned bank (#95)), but were unsuccessful stopping the foreclosure proposal (Initiative 84). IBC also filed briefs with the Supreme Court.

We will not let down our guard, but will continue to watch these issues and take necessary actions.

 Graph courtesy of Mortgage Bankers Association

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