The Colorado attorney general’s office is investigating lending and advertising practices at four mortgage brokerages, an expansion of a probe begun last year.
The state sent subpoenas to 17 brokerages late last year, and has opened full investigations into the four, said Nate Strauch, spokesman for Colorado Attorney General John Suthers.
Strauch wouldn’t name the companies.
Officials have said they are focusing on mortgage companies that advertise low teaser interest rates, tout minimum- loan-payment plans and use confusing terms to describe their loans.
Deceptive lending practices can place home owners and buyers into loans they can’t afford, putting them at higher risk of foreclosure.
Colorado had the highest rate of foreclosure filings per household of any state last year, according to RealtyTrac of Irvine, Calif. The state is now No. 2.
Lenders initiated more than 28,000 foreclosures in the state last year, including more than 19,000 in the Denver area.
The state’s investigation could result in the filing of civil lawsuits against mortgage brokers found to have violated the Colorado Consumer Protection Act, Deputy Attorney General Jan Zavislan said in October.
The act forbids brokers from advertising “any false, misleading or deceptive statement with regard to rates, terms or conditions for a mortgage loan.”
Some mortgage advertising in Denver newspapers and on TV and radio features interest rates of as little as 1 percent and other special offers, with details often provided in fine print.
The state has subpoenaed the Denver Newspaper Agency, which handles business operations for The Denver Post and Rocky Mountain News, seeking information on mortgage advertisers.
The companies named in the DNA’s subpoena were Mortgage Planning and Lending Specialist Ltd., Jupiter Lending, Mile High Mortgage, CBA Inc., Consumer Mortgage Group Inc., Mortgage Processing Group Inc., Shifrin Inc., Wholesale Mortgage Lending LLC, Vision Title Agency of Colorado Inc. and VTA of Mile High.
Staff writer Greg Griffin can be reached at 303-954-1241 or ggriffin@denverpost.com.
