John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... 
Last June, former State Rep. Rosemary Marshall, (D-Denver), told InsideRealEstateNews that she hoped Gov. Bill Ritter would appoint her to the newly created Board of Mortgage Loan Originators. On Wednesday, the day the board became effective, her wish was granted.
Ritter, however, did not announce that he had named Marshall and four others to the board until Thursday. The law creating the board, House Bill 10-1141, was signed by Ritter on May 26. HB 10-1141 also changes the Division of Real Estate from what is known as a Type 1 transfer – a largely autonomous division – to a Type 2 transfer, which falls more under the umbrella of the Department of Regulatory Agencies.
The successor to Erin Toll, the former director of the Division of Real Estate, will have less power to wield than she did. Toll left after being placed on a paid leave of absence following a run-in with a mortgage broker, Sen. Ted Harvey, R-Highlands Ranch. Toll, now a Realtor with Perry & Co., dropped a whistle-blower complaint against DORA when she accepted a buy-out offer. The word on the street is that Toll’s replacement will be named in late September of in October.
Marshall’s didn’t want Toll’s job
“I did not put my hat in the ring for that job,” said Marshall. “That job is going to be more of an administrator’s job going forward, than actually being a director. But I actually did request and apply to serve on the board. The governor’s office called me on Wednesday to let me know I had been named on the board.” (For more on this subject please visit Erin Toll’s succesor to be paid $80,000 to $120,000.)
Marshall, who was initially elected as a state representative in 2000 and served four terms, around 2006 focused on enacting laws combating fraud and deceptive mortgage practices. In 2007, she sponsored what at the time was heralded as one of the most comprehensive packages of mortgage fraud legislation in the country. She received awards from Colorado Bankers Association and the Colorado Association of Mortgage Lenders.
Consumer advocate
“I think it is really important to have a consumer-advocate on this board who understands the law, which I do, since I initially was a sponsor of it and helped get it passed,” Marshall said. “I don’t think mortgage fraud is as much of an issue as it was back in 2007. Still, it is very important to ensure that the consumers and the public know if they have complaints about mortgage fraud that it will be investigated. And it is important to have people on the board who are very knowledgeable about the law, which I am.”
Marshall’s term, as well as Billy “Bart” Glenn Bartholomew’s of Arvada, will expire on Aug. 10, 2014. Julie I. Piepho, an executive vice president of Cornerstone Mortgage in Fort Collins; Cheryl L. Dingwell-Keckritz, of Clarion Mortgage Capital of Colorado Springs; and Leslie J. Mitchell of Denver, all were appointed to terms that expire on Aug. 10, 2012. Mitchell formerly was the president of 1st Bank of Cherry Creek. She retired earlier this year.
Under the law, three of the appointees must be licensed mortgage originators, while two need to be members of the public not engaged in mortgage origination or mortgage lending.
“Final and ultimate authority”
The board is the “final and ultimate authority for rule-making, enforcement and for the administration,” of the program. The board, however, may delegate in writing any of its duties to the director of the Division of Real Estate.
The board may deny an application for a mortgage broker, refuse to renew, suspend or revoke the license, enter cease and desist orders and impose fines if mortgage companies violated provisions that include: acting without proper registration; failing it maintain possession of document’s as prescribed by the board; employs or acts through unlicensed mortgage loan originators; or if the mortgage company engages in non-compliant, false or deceptive advertisements Toll had launched an investigation of Sen. Harvey’s firm for alleged deceptive advertising.
The board may fine mortgage companies who violate the standards of conduct under the law. Fines may not exceed $1,000 per violation in the first administrative proceeding and cannot be less than $1,000 or more than $2,000 per violation, in subsequent administrative proceedings.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.
Well, there you go again. They are proving, once again, that the political spoils system is firmly in place.
“I did not put my hat in the ring for that job,” said Marshall. “That job is going to be more of an administrator’s job going forward, than actually being a director.”
Why it seems like politics and the desire for power go hand-in-hand? Maybe Toll should have been a politician.