Committee approves financing measure
DENVER — Grand Junction’s newest state legislator won committee approval Thursday for his first bill, a measure he hopes will help lift the state’s real estate market out of the doldrums.
Rep. Ray Scott plans to do that with a bill to allow property owners to provide their own financing in selling homes and commercial properties.
The Grand Junction Republican said the bill is necessary to reflect federal changes to the Secure and Fair Enforcement for Mortgage Licensing Act, passed by Congress in 2008 to crack down on unlicensed and inexperienced people who were acting as mortgage loan originators.
“When we had the mortgage crisis, (the act) was more of a knee-jerk out of Washington about these people running mortgages, which there were, because they were doing bad things,” Scott said.
Under his measure, HB1022, a person, estate or trust would be able to provide their own financing, but would be limited to up to three sales during a 12-month period.
The House Economic & Business Development Committee passed the bill unanimously.
Scott said the change will help spur activity in the real estate market, something needed because of the tight credit market.
“If you had, for example, an $800,000 sale, and they can get a mortgage for up to $400,000, then the owner could carry the balance,” Scott said.
“This way, they could get the deal done because otherwise they couldn’t.”
The measure now heads to the full House for another vote.