John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... 
Erin Toll, on leave as head of the Colorado Division of Real Estate, has hired an attorney.
Erin Toll, who abruptly went on leave as the director of the Colorado Real Estate Division this week has hired an Evergreen lawyer to represent her, the Denver Post reported today. (To read the story, please visit this link.)
Bill Finger, the lawyer, who specializes in employment rights of public employees, late today, said there is little he can say because of client-lawyer confidentiality. But he said he may be speaking publicly about the situation in the near future. (For more on his interview with InsideRealEstateNews.com, please visit this link.)
Leave follows senator spat
It is not clear why Toll is on leave, or even whether it was voluntary or not.
She went on leave in the wake of public dispute with Sen. Ted Harvey, (R-Highland Ranch), a mortgage broker, who works for American Home Funding, which is being investigated by Toll’s office for alleged misleading advertising.
However, one thing is clear: Toll is a lighting rod for strong opinions about her, both pro and con.
Judge, jury and executioner
One person, commenting on InsideRealEstateNews.com, had this to say: “I do not think anyone can comprehend the horribleness of this situation unless you have been a party to it. She was judge, jury and executioner before some people even knew they were in ‘trouble.” Others described her as a “ruthless megalomaniac,” and some even quoted the lyrics to “Ding Dong the Witch Is Dead,” to convey their glee that at least at this time, she’s no longer the head of the real estate division.
But another person, also commenting on InsideRealEstateNews.com, seems to think she is more like the new sheriff in town going after the bad players with a vengeance.
Toll has supporters
“The mortgage industry in this state has been neglected for years – lenders running amok. Now when someone comes in and tries to clean up this mess, they are complaining that they’re being too tough and unfair. Baloney… Erin Toll should be applauded for protecting the citizens of Colorado. Stop whining and insist that the bums get thrown out of the business so the honest brokers can do their jobs. There are honest brokers out there – let them shine“
Mike Rosser, a mortgage industry consultant, who followed his father into the business in 1965 – but his first mortgage banking meeting in 1940 when he was all of 8 years old – he has never seen a state-appointed official garner such strong feelings, positive and negative.
“I think part of is a sign of the times,” Rosser said. “With the foreclosure crisis, there has been more focus on this industry than ever before.”
One person close to Toll said he is taking the vitriolic attacks against Toll with a grain of salt, because he thinks most of the loudest critics are coming from people she has investigated, and does not represent the feelings of the majority of the people in the industry.
Brokers didn’t collapse economy
Dan Brown, principal of Spire Financial, who has never met Toll, said he can see both sides. But he said he doesn’t think it is fair to target his industry as it were the root cause of the worst housing market and economy since the Great Depression.
“What I think is funny about this, is the smallest of the small guys – the mortgage brokers and the appraisers – somehow are the people are taking the full-brunt of the blame for this macro-issue of the collapse of the entire economy,” Brown said. “That is simply short-sighted.”
He said if it is true that Toll is “the judge, jury and executioner, who can carte blanche go after anybody on a whim, and destroy their livelihood,” that is too much power in the hand of one person.
“They keep wanting to single out the mortgage brokers, when I think 95 percent to 98 percent of them are doing a good job,” Brown said. “On the other hand, I can understand her desire to carry a big stick. I want the bad apples gone. They reflect poorly on me and everyone else who is doing a good job. If an investigation has merit, I want her to come down hard on those people. So I think she is in a tough situation.”
Peer board needed
One way to resolve the problem is to create a board to oversee investigations and mete out punishment. The Colorado Senate has approved the idea of a board, but it is not law yet.
Rosser also likes the idea of creating a board, and disagrees with a Denver Post editorial today that called legislators to hold off on creating a board, until the “dust settles” on the Toll turmoil.
I asked Rosser if a board, which would include members of the mortgage industry, would be a case of the fox guarding the hen house.
“No, it would be the hens watching the fox den,” he said.
Rosser noted that he serves on a state housing board that has some authority over the manufactured housing industry.
“It’s a system that works and is very fair,” Rosser said. “The meetings are open to the public and is very transparent. We have some very spirited debates. My experience on boards is that board members take it very seriously. They receive staff reports and look at all of the evidence very carefully.”
But Gary Bauer, an independent real estate broker, isn’t sure another board is needed.
“I’m not necessarily against having a peer-board created for mortgage brokers, the way other boards look at other people involved in real estate transactions,” Bauer said. “But I just worry about another level of government being created that is not needed.” He also said that legislators should look to see if creating a board would end up costing the government more money, before it approves it.
For an earlier blog on Erin Toll, please visit this link.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
[...] Erin Toll hires a lawyer [...]
Good! Finanlly Someone Sees The LIGHT! She certainley doesn't!
Yes Erin Toll and the “Board of Appraisers”, (which is a complete joke), threw O’Gorman under the bus without provocation, in spite of a court ruling; Ms. O’Gorman was found innocent of any wrong doing by a Federal Court! She Was Still Ruined By Erin Toll In The Press! How Low Have We Gone?
We, as an appraisal community, call “bullshit” on the interference of these uneducated “committees" who dictate our profession! STOP THE MADNESS!
Judge, jury and executioner
Welcome To The Middle Ages! Get Her Out Of There! WTF? No Qualifications!!!!????????
Ah Ha! Someone finally saw the light… Cost me $75,000 and my life – Go Away, Erin Toll….
we already have an appraisal board and a real estate board, very few people ever get to appear before them and state thier case due to the prohibitive cost of just defending the investigation. i had a complaint lodged against me. the borrower was pissed because the appraisal was too low to get her refi. i was called in by the investigator to discuss the situation and "see what we could work out" i was bombarded by the investigator and thier attorney ( i was never told thier attorney would be present) and they insisted i just surrender my license. i told them i would see them in hell first. the board is not setup to be the "value police". the board is there to oversee enforcement of the rules. values are OPINIONS based on varying factors and change based on indicating factors, sometimes in a very short period of time. erin toll had no experience in either the appraisal, real estate or mortgage industry and had no busines being APPOINTED to the position. if her leave was voluntary she sure wouldn't need an attorney. i for one am glad she will be under the scrutiny of the public, instead of the other way around for a change. also, sen. harvey was never personally under investigation
Toll came into DORA under former Gov. Bill Owens, who on Thursday characterized Toll as a regulator who perceived potential violators as the enemy.
"She was an unguided missile that always sought the headline," Owens said. "Ms. Toll's primary objective was to keep her name in the news by lashing out at her perceived enemies."
Seems like there has been plenty of concerns about Toll from the very person who placed her. I am surprised she wasn't removed sooner. I hope she receives the very treatment and handling she dished out.
Political Bullshit… I suggest a class action suit against the State Of Colorado.
That's a great idea! How many appraiser's have lost their lives due to her?
It's unfortunate that what is lost in all of this is how bad we need someone heading up the Real Estate Commission that is willing to go after people. I met Erin once, but I can't say that I know enough about her to form an opinion. I certainly don't approve of unfair investigation tactics, but I can say the number of people that she has investigated pales in comparison to the number of people I've seen screwed by real estate "professionals", agents, appraisers, and lenders. More often than not, it's just stupidity or laziness on the part of the professional, but in many cases it is intentional and malicious. If she was over-zealous in her pursuit, then I'm sure she'll suffer the consequences, but I've seen first hand why she would feel the need to be.
She can't even read or understand an appraisal – see O'Gorman v. State of Colorado… Read the depositions….
Where can I find this case? Citation? Dates?
Erin Toll, her office and investigators have thrown people under the bus publicly for years now! She has chosen to fight many of these battles in the press. You can simply google Julie O'Gorman (I do not know her at all) and see all the tactics with the benefit of hindsight and see that Ms Toll plays very dirty. She should be the subject this time around of those very same tactics!
Ms. Toll is a NY transplant who aspired for greater office with ZERO qualifications. Let's hope she decides to go back to NY and take her shitty ways with her.
The Mortgage Brokers division is a JOKE. NO one in the division has any experience as a mortgage Broker, Underwriter or with the intricate loan products, programs or processing nor did any of them deal with consumers in an originating capacity. If they never worked in it in a ‘hands on capacity’ how can they understand it? Oh wait THEY CAN’T
Toll, under the Director Model has the authority of Rule Making and she has flexed these muscles. She is not a legislator and has NO mortgage industry experience herself, what gives her the right to impose ‘Rules’ that affect the industry and its professionals?
Further, Toll told the CO State Senators that having a board model would be letting the fox guard the hen house. Does she think ALL Mortgage brokers are foxes?
Are there no honest mortgage brokers with enough ethics and expertise to govern their own industry? This in itself shows the power hungry, ignorant attitude of Mrs. Toll regarding the very industry she governs.
Kudos to Senator Harvey and Senator Mitchell for standing up to Mrs. Toll.
I hope Erin does NOT return–zealous mis-directed & ego strong and I hope ALL have the wisdom NOT to replace her with someone similar!
Erin Toll has been on a total Witch-hunt against Mtg Brokers and Appraisers– WAY out of proportion with their level of responsiblity in the housing melt-down– and she made it clear that her motive was to get to Washington by garnering attention for her persecution of Brokers and Appraisers. Quite a few of her man-dated changes do not help the consumer– in fact they work the other way. And the damage she has caused to many high integrity people's livelihoods is inexcuseable.
Ms Toll clearly had a personal agenda and vendetta against the very industry she was appointed leader of.
There were concerns by Bill Owens himself.
The bottom line is Ms Toll made her bed. She lied to the press claiming Mr. Harvey was investigation when she knew damn well he wasn 't. She should research tortious interference. Also, this is par for the course with this man eating feminazi. She was used to alerting the media long before destroying somebody. The problem is Mr Harvey had the tools to fight back and people in his corner to listed to her.
I hope the lawyer takes her for all she is worth, she loses her ability to work for ANY state again, and Mr Harvey sues her in civil court. She brought this on her self!