Two mortgage brokerages under investigation by the state are suing officials from the Colorado Division of Real Estate, alleging their privacy rights have been violated.
In separate lawsuits filed recently in Denver District Court, the owners of Acclaim Mortgage Inc. and Vintage Mortgage Co. sued division director Erin Toll and Cary Whitaker, manager of the state’s mortgage broker program.
As part of its investigation, the Division of Real Estate subpoenaed bank records for Acclaim owner Daniel Gordon and Vintage president Nicholas Barta. The division also requested bank records for Barta’s wife, Annette.
“My client doesn’t want the state perusing through his personal business just for the hell of it,” said Wayne Vaden, Gordon’s attorney. “It’s really a witch hunt.”
Barta’s attorney, Damon Semmens, declined to comment, citing the pending nature of the case.
A temporary restraining order against the Division of Real Estate that previously had been granted was dismissed Thursday, but Judge John Madden asked the division to cease its investigation until a hearing set for Oct. 19.
Toll said privacy rights do not apply to information relevant to her investigation, which is a result of complaints filed against Acclaim and Gordon. The complaint alleged Gordon was originating loans for unlicensed mortgage brokers, and therefore his bank records are relevant, she said.
The division requested account statements, copies of checks and evidence of deposits.
“We need to see his payments to unlicensed persons, and the only way to do that is through bank accounts,” Toll said. “He voluntarily gave up some of his rights in order to have the privilege of being a loan originator licensed by the state.”
Under a law that took effect Aug. 5, mortgage-loan originators must register with a national database. The Colorado Mortgage Loan Originator Licensing Act is designed to strengthen the state’s existing mortgage regulations and bring Colorado in line with recently enacted federal laws requiring the national registration. All licensees also must pass an FBI background check.
On Aug. 31, the Division of Real Estate inactivated 4,560 licenses of brokers who failed to comply with the law.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
