Tate Bill Easing Access to Home Loans Advances

Denver — At a time when home ownership seems increasingly out of reach for too many Americans, especially first-time buyers, a bill advancing through the Colorado Statehouse could help ease the path to a purchase by allowing family members to function as loan originators.

Senate Bill-127, which was authored by Senator Jack Tate (R-Centennial), today won unanimous support of the State Business Labor and Technology Committee. It now moves to the Senate floor for debate.  

Currently, state law doesn’t require that a parent who assists his or her child with a home loan be licensed as a loan originator. SB-127 broadens that exemption slightly to cover any member of the family. Tate believes this will help potential home-buyers who can’t, or don’t choose to, get a home loan through more traditional means.

“If we’re going to let parents help their children finance a home, without having to get licensed as a loan originator, why not let an uncle do the same for a niece, or a sister do the same for a brother?” asked Tate, in explaining the rationale behind the bill. “Our goal here is to expand alternative home financing options, by not limiting the loan originator exemption to just a parent helping a child, but to include other family members who might want to play this role.”     

"Senate Bill 127 is a great tool to help individuals provide family members with mortgages,” said Jeremy Schupbach, Director of Legislative Relations for the Colorado Bar Association, which backed the bill. “It was great to work with Senator Tate and our partners to pass this bill out of committee."

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