The Tribune reports from Colorado. "Foreclosures hit a record high in 2006. Weld County foreclosures hit 2,073 for 2006, more than 500 more than in 2005, according to the Public Trustee's Office. And through the first three working days of 2007, 45 more foreclosures had been filed with that office."

"'We have a lot of investor buyers looking at our prices right now. There are some prices on single family homes I haven't seen in six or seven years and I've been in this business in Greeley for 11 years,' (realtor) Steve Baker said. Prices have decreased significantly in some cases, he added."

The Mountain Mail. "The number of filings for foreclosure in Chaffee County increased 57 percent from 2005 to 2006, representing one foreclosure for every 152 pieces of commercial and residential property. Many foreclosures in the metro area are a result of risky adjustable rate mortgages, Kim Anderson, mortgage loan officer at High Country Bank, said, and when the adjustable rate increased, monthly payments doubled in some cases."

The Denver Business Journal. "Tucker Hart Adams, a leading Colorado economist, continues to foresee a 75 percent chance of a Colorado recession in 2007; with a 40 percent chance of a severe recession, 30 percent chance of a 'soft landing' and a 5 percent chance of disaster."

"'Although we do have speculation and overbuilding, particularly in the single-family market, we got on top of it more quickly than many other parts of the country. I'm very concerned about multi-family and townhouses; even though anybody who sells in that market will tell you that it's dead in metro Denver, starts are still up almost 40 percent year-to-date,' Adams said."

The Denver Post. "Pressuring an appraiser to inflate a home's value would become a crime under legislation unveiled Monday by Colorado Attorney General John Suthers. Submitting a falsified appraisal to get a loan would also be a crime under the bill."

"Prosecutors need new laws to fight fraud and reduce foreclosures, Suthers said Monday. 'Appraisal fraud is a big part of the problem we have,' he said."

"Reaction from the mortgage industry to Suthers' proposals was mixed. 'An inflated appraisal defrauds the funding lender. It can also be bad for the consumer,' said Chris Holbert, president of the Colorado Mortgage Lenders Association. 'We are very supportive of the bill.'"

"But Bill Kidwell, president-elect of the Colorado Association of Mortgage Brokers, said there is not enough evidence of a link between appraisal fraud and deceptive trade practices to mortgage brokers. 'We firmly believe that significantly more research needs to be conducted before additional legislation is even considered,' Kidwell said."

"Appraisal fraud typically occurs when an appraiser assigns an inflated value to a home. In some cases, the inflated value allows the appraiser, mortgage broker and real-estate agent to make more money on a completed deal. When borrowers are unable to sell or refinance the inflated property, foreclosure can result."

"In cases of refinancing, the borrower may benefit initially from an inflated value but owe more than the home is worth."

"Corrupt appraisers have been too willing to provide whatever value is needed to get a deal done, taking business from ethical providers, said Matt George, vice president of the Colorado chapter of the Appraisal Institute."

"'There are a lot of good friends of mine who are not appraising anymore because they lost business by doing what was right,' George said."

The Rocky Mountain News. "'Just as homeownership is the American dream, mortgage and foreclosure fraud has become an American nightmare,' Suthers said at a news conference. Last year, a record 19,425 real estate foreclosures were filed in the seven-county Denver area."

"Chris Holbert, president of the Colorado Mortgage Lenders Association, praised the proposal. 'One of the best aspects (of this bill) is that it includes everyone who would be involved in real estate fraud - it's not just about mortgage brokers or loan originators, but includes real estate agents and consumers,' Holbert said."

"The Division of Real Estate will have the authority to deny or revoke the registration of a mortgage broker who has been prohibited by any court from engaging in deceptive conduct related to the industry. Prohibits mortgage brokers from compensating, coercing or intimidating a real estate appraiser to get an artificially inflated appraisal."

"(It) will prohibit anyone else, including Realtors, other brokers, lenders, investors or consumers, from improperly influencing an appraiser and prohibits an appraiser from knowingly submitting a false appraisal."