AMENDED MINUTES

LEGISLATIVE COMMITTEE

COLORADO PUBLIC TRUSTEES ASSOCIATION (CPTA)

Eastern Division Meeting

Pueblo Hampton Inn & Suites

Pueblo, CO

September 17, 2010

ROLL CALL

Members Present:        Bob Sagel, Chair         Carol Snyder               Dee Ann Stults

                                    Patty Bartlett              Tom Mowle                 Debby Morgan

                                    Susie Velasquez          Margaret Chapman     Ana Maria Peters-Ruddick

                                    Lois Widhalm

Others Present:            Tom Hill (by phone)    Paul Brown

Members Absent:        Jim Covington             Karen Arnold              Michelle Miller

DISCUSSION ITEMS

·         Senate Bill 10-093

Senator Lundberg sponsored this bill on behalf of constituents/investors but this bill is now dead.  In case a new similar bill is introduced in the 2011 session, the Public Trustees made a commitment to the legislators in committee during the 2010 session that they would work with all stakeholders to try to come to some solutions on the HOA assignment/redemption issues.   Public Trustees want to be part of the conversation and will look into setting up a meeting with the stakeholders to find out what the issues are.  It would benefit the Public Trustees to discuss this bill with the stakeholders.  Carol Snyder will try to set up a meeting with law firms, HOA attorneys, Michael Valdez from the Colorado Bar Association, foreclosure attorneys, Colorado Legal Services, Hindman Sanchez representatives and HOAs.  This meeting should be held at the Colorado Bar Association in October before Fall Seminar possibly on October 8, 2010.  Do the Public Trustees want to take a position on this bill?

·         Cure Figures

The issue is where a borrower is in default but has no time period.  The law should state a time period so that the borrower knows what they owe and for what time period.  For example, is the default for a September payment or some other period?  Arrearages should be detailed and include the time span.  This issue should be addressed if the Public Trustees have their own bill.

·         Mailing List

The question is that if a mailing is undeliverable, why even mail a second time?  The Public Trustees decided not to pursue this. 

·         Redemption

The issue is how to protect junior lienors with small liens.  One idea was if the lien is a percentage of the loan amount, provide documentation to the Public Trustee by the time the bid is due and that lien will be added into that bid amount.  Investors do not like to be blindsided by unrecorded HOA liens.  Small lienors need to protect their small businesses.  Consider HOAs recording their lien but limit the dollar amount assigned.  Why should they get a windfall on their lien.  Another possibility is to assign prior to sale.  Record or assign before sale to solve HOA issues. 

·         Legislation

Public Trustees will not pursue their own legislation.  Possible to include cure figures issue as a housekeeping bill.

·         Deferment

All Public Trustee are to collect and provide statistics on deferment for the time period August 2009 to August 2010.  The statistics to be provided include 1) eligibility 2) certified as qualified  3) withdrawal  and  4) foreclosure to sale.  The same statistics are needed for expedited foreclosures.  The Public Trustees will not take a position to kill the deferment bill.  There are federal programs available and Ana Maria Peters-Ruddick will check on these and get back with the Public Trustees on this. 

Respectfully Submitted by,

Susie Velasquez, 2^nd Vice President

for Karen Arnold, Secretary