Seller financing exemption now law
A measure proposed by a Grand Valley legislator was among the first of the session to be signed into law.
House Bill 1022 passed the Legislature unanimously and was signed into law on March 1 by Colorado Gov. John Hickenlooper.
The bill will go into effect on Aug. 10, assuming the legislature adjourns as scheduled.
State Rep. Ray Scott, R-Grand Junction, introduced the measure, which exempts property owners providing seller financing on up to three residential properties in a
12-month period from having to be licensed as mortgage loan originators.
“I was elected to help get our economy back on track. A key component to our state economic recovery is to revive the housing market,” Scott said.
Previous state law placed more restrictions on seller financing than what the federal government dictates. Moreover, buyers of a large number of resort, farm and ranch properties are unable to secure conventional financing because the loans exceed Federal Housing Administration (FHA) limits or are considered too risky by lending institutions.
“With credit tight, and too many homes on the market, especially in rural areas, it’s vital we find a responsible way to absorb the excess inventory,” Scott said. “We can’t get our economy back on track without a recovery in the housing market. I decided to carry this bill because it didn’t make sense for the state government to put unnecessary restrictions upon willing buyers and sellers.”