Attorney General John Suthers is backing a bipartisan proposal in the Legislature to crack down on appraisal fraud.
That's when appraisers inflate property values under pressure from mortgage brokers in order to give buyers extra money at closing time.
Suthers says those bad loans hurt banks, but also get passed on to other home-buyers, making properties more expensive.
Lawmakers voted last year to require mortgage brokers to be registered for the first time.
Under the new proposal, brokers found to engage in deceptive practices would lose their registration, or be barred from registering in Colorado.
Appraisers, real estate agents, investors and anyone else who participates in a scheme could be prosecuted or sued and subject to triple damages.