(Jan. 29) – The House gave final approval today to a bill by Rep. Steve Lebsock (D-Thornton) to close a loophole in home mortgage loan modifications.
In cases where mortgages are sold while they are in the process of being modified, current Colorado law allows the new servicers of the mortgages to disregard the proposed modifications. HB13-1017, which has the support of the Colorado Banking Association and other finance and real estate industry groups, ends that practice.
Because loan modifications often involve homeowners who are struggling to make their payments, the collapse of a loan modification often turns a distressed loan into a foreclosure.
Today’s 37-28 vote sent the bill to the Senate. It was the first party-line vote in the House this year.
“I’m excited to pass my first bill,” Rep. Lebsock said after the vote. “I wish it had received bipartisan support, but I’m proud to sponsor a bill that will keep more Colorado families in their homes.”