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Last Updated:
May 02, 2011

May 2011 Summit County Real Estate.Net Notices

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HB 1022- Seller Financing of Real Property gets signed into law

We are pleased to report that HB 1022 - Seller Financing of Real Property by Rep. Ray Scott (R-Grand Junction) and Sen. John Morse (D-Colorado Springs) - was signed into earlier this week and will take effect immediately.  The new law, proposed by CAR, will now allow a seller up to three transactions in any twelve month period before they are required to be licensed as a mortgage loan originator.  Formerly, state law permitted seller financing only if the property being conveyed serves as the seller's residence.

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We would like to extend a special thank you to Representative Scott and Senate Majority Leader Morse for sponsoring the bill and guiding it through the legislative process.  HB 1022 gained unanimous consent in both chambers of the legislature prior to being sent to the Governor's office. This bill synchronizes Colorado law with the seller financing language in the Dodd Frank Act.

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SB 15-Protections for Homeowner's Insurance gains initial approval in Senate

SB 15 by Sen. Joyce Foster (D-Denver) and Rep. Joe Miklosi (D-Denver) passed on Second Reading in the Senate this morning. This bill seeks to prohibit an insurance company from cancelling or refusing to renew a homeowner's insurance policy if the homeowner has filed two claims or fewer in the previous 5 years. SB 15 also excludes claims for which an insurance company paid nothing from an insurance claim account and lengthens the notice of cancellation or refusal to renew period from 30-45 days. 

 

REALTORS recognize that accessible and affordable insurance is essential to the real estate market. Property and casualty coverage is an important, underwriting requirement for conventional, government-assisted and commercial mortgages.  This bill provides critical protection for homeowners against the threat of losing coverage in the instance of a natural disaster or some other event outside their control.  It still needs to pass one final vote in the Senate before moving on to the House.

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HB 1132 On-bill Financing for Energy Efficiency Improvements

HB1132 introduced by Rep. Pete Lee (D-Colorado Springs) has been assigned to the House Committee on Transportation. Current law does not allow a public utility to finance the up-front costs of making one or more energy efficiency improvements to real property and to have the property owner repay the financing over time through direct charges on the owner's utility bills. HB 1132 allows on-bill financing under certain circumstances.

REALTORS have expressed our opposition to the legislation due to a number of reasons:   the financing creates an encumbrance/lien on the property; the absence of credit risk protection;  and the uncertainty surrounding FHFA's evolving stance on additional encumbrances. Home buyers would also be saddled with the previous owner's energy efficiency improvement's costs. HB 1132's first hearing is scheduled for March 9th.

NAR's 2011 Public Policy Priorities

NAR has issued its 2011 Public Policy Priorities. The brief discusses issues such as taxation, real estate finance, business issues and technology, and commercial real estate.

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Jobs and Home Ownership

In advance of the release of President Obama's Fiscal Year 2012 budget and in light of the Administration's call for reforms to the secondary mortgage market, NAR placed the ad "Jobs and Home Ownership. You Can't Have One Without the Other" in The Washington Post, reminding consumers and lawmakers about the critical connection between housing and jobs.

The comprehensive version of the 2011 Public Policy Priorities delves deeper into issues such as NARs response to the foreclosure crisis, mortgage interest deduction, FHA programs, and commercial real estate lending. NAR's staff uses its close proximity to the U.S. Capitol and its long-standing relationships with legislators to work closely with Congress and regulatory agencies to push forward issues that benefit REALTORS®.  This brief is a great way to learn more about NAR's policies and stance on a variety of issues effecting the real estate industry and consumers.

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Glenwood Springs Council To Continue Work On Comp Plan

The Glenwood Springs City Council will hold a second hearing on the proposed Comprehensive Plan Update on Thursday night at 6 p.m. in Glenwood. The city, like the county, has spent several years working to draft a comprehensive plan that will guide development in Glenwood Springs. The Planning and Zoning Commission was unable to report the document out of the commission with a recommendation due to concerns by some commissioners that the document was too large and complex for citizens to read and understand. Other commissioners felt the document should have more meat, and direction in the document. GSAR has been genreally please with the document, as it is advisory in nature, rather than mandatory, and it encourages economic development and growth in Glenwood Springs. NAR's Land Use Attrorney's have commented that this Comprehensive Plan is one fo the better ones they have seen nationwide. After the Councils review on Thursday, they will consider a resolution to approve the Comp Plan on Thursday, March 17th at their regular Council meeting. 

 

GSAR Meeting With CAR, Banks, and Title Companies to Discuss Buyer Choice of Title Companies With REO Properties

While buyers technically have a choice of title company under RESPA rules, REALTORS are seeing more and more problems with title companies chosen by banks in REO properties. These title companies are not local, so they often miss tranfer taxes, and don't understand procedures such as "first right of refusal". Recently a Denver based title company was handling a transaction where there was a first right of refusal on a property. the title company had not handled a "first right of refusal" so passed the the trnasaction off to another title company. This delayed the transaction by two weeks. There have been several instances where local transfer taxes were missed completely, and an instance where an out of state title company applied an Aspen transfer tax to a property in Aspen.  The Glenwood Springs Association of REALTORS has been pressuring CAR for nearly a year to help clarify, and reinforce a buyers ability to choose a title company fo their choice. On Tuesday, GSAR leadership and government affairs staff will meet with CAR, banks, and title companies in a stakeholders meeting to discuss options on how to address this issue legislatively in Colorado. Two other states, California and Hawaii, already have laws on the books regarding choice of title companies, but say little more than what RESPA rules already say.

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