Date: 01/22/2007
Final
Banking Industry
COMMITTEE ON JOINT BUSINESS AFFAIRS & LABOR
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03:41 PM
Don Childears, President of the Colorado Bankers' Association (CBA), explained that he believes there is some positive data that suggests there is not a big change in foreclosure. Mr. Childears gave some statistics from 2004-2006 on non current loans, charge offs, and other real estate owned. Mr. Childears discussed the CBA's efforts to increase consumer awareness and education as well as general enforcement provisions that have been mentioned in previous testimony. He discussed a new Colorado Bureau Investigation unit that deals with foreclosure issues.
03:51 PM
John Dill, Credit Union Association of Colorado, spoke about the difference between credit union relationships with their customers, who are members, versus consumers who have no relationship with their lender. He emphasized the role of credit unions with their members in ensuring fewer problems with foreclosure and debt problems. Approximately 64 percent of credit unions in the state sell mortgages. He obtained data from 8 credit unions around the state with regard to their mortgage loans. Of those loans, less than one half of one percent were in foreclosure.
04:00 PM -- John Burrus, an attorney for the Independent Banker Association which represents 100-130 community banks. He emphasized that banks are not in the business of making loans that they cannot collect on and they do not want to foreclose. Representative Carroll asked about HOA foreclosures regarding HOA dues. Mr. Burrus stated that in most cases a person who is behind on HOA dues is also behind on their mortgage so typically HOAs will wait until the bank forecloses to collect.