State officials changed how they approach investigations into the real estate industry just days after Colorado’s top real estate regulator wrongly said a state senator and his employer were under scrutiny for mortgage-related offenses.
Under changes that went into effect March 12:
• Investigators now must tell licensees why they’re under scrutiny.
• The broad-reaching use of subpoenas as an investigative tool is to be limited.
• The agency is now refusing to divulge certain information that previously had been made public, including the existence of investigations or their outcome.
The new marching orders regarding investigations came a day after a meeting between Gov. Bill Ritter’s office and Barbara Kelley, director of the Department of Regulatory Agencies, which oversees the Division of Real Estate.
Previously, investigators had discretion on whether to reveal the nature of a complaint. Licensees often complained that inquiries occurred without their knowledge or that sweeping requests for information came without explanation.
Under the new rules, investigators may provide details of the complaint to witnesses they interview.
“Be professional when discussing any allegations with witnesses,” the bold-faced guideline reminds investigators.
