Colorado State | Dept. of Regulatory Agencies | Div. of Real Estate | Mortgage Broker Information
Important Definitions:
Mortgage Loan Originator: means an individual who takes a residential mortgage loan application; or offers or negotiates terms of a residential mortgage loan.
Residential Mortgage Loan: means a loan that is primarily for personal, family, or household use and that is secured by a mortgage or deed of trust on residential real estate upon which is constructed or intended to be constructed a single-family dwelling or multiple-family dwelling of four or fewer units.
1. Introduction:
How do I obtain a temporary license?
When
can I apply for a license as a mortgage loan originator?
Who
is required to be licensed?
How do I license my company?
How
do I apply for a license?
What
are the costs associated with a license?
What
are the education requirements for a mortgage loan originator?
Are transactions with occupancy types of second home and investment property within the jurisdiction of the Director of the Division of Real Estate?
How do I update my contact information?
How do I inactivate my mortgage loan originator license?
How do I re-activate my license?
If I am not compliant with the licensing requirements, what should I do?
Is Colorado a brick and mortar state?
I am a hard money lender. Am I required to be licensed as a mortgage loan originator?
If I have recently submitted fingerprints for a real estate broker license, do I need to resubmit?
How long will my license be valid?
Whom do I contact to have a background check done?
What if I have more questions?
When will I be able to file a complaint against a mortgage loan originator?
Colorado Foreclosure Hotline: 1.877.601.4673
3. Surety Bond
Questions:
What
is a surety bond?
How
do I obtain a surety bond?
Am
I required to send my surety bond to the Division of Real Estate?
When
does the surety bond need to be effective?
What
is the amount of the surety bond?
Does
the surety bond need to be specific to the Mortgage Loan Originator Licensing
Act?
Can
I get one bond to cover all the employees in my business?
Whom
is the obligee of the surety bond?
Is there a surety bond sample form?
How do I update my surety bond information?
4. Exemption
Questions:
Who
is exempt from Licensure?
How
do I learn more about the Supervised Lenders license?
Does my Mortgage Company Originator Registration exempt me from the Colorado Uniform Consumer Credit Code Supervised Lender License requirements?
If
my company is registered with the Secretary of State, are we exempt?
Is
correspondent lending an exemption?
My
company is a mortgage banker. Am I exempt?
5. Errors and Omissions Insurance:
Where can I find a list of E&O providers
where can I find information about the E&O policy requirements
How do I apply to have Temporary Mortgage Loan Originator status?
Where can I find more information about the temporary mortgage loan originator status?
7. S.A.F.E Information
What is S.A.F.E?
8. Nationwide Mortgage Licensing System and Registry
What is NMLS&R?
When will I receive my Unique Identifier for Freddie Mac? Fannie Mae?
Introduction
Q:
How do I obtain a temporary license?
A:
- Mortgage brokers seeking a temporary license must have:
- Mortgage loan originators seeking a temporary license must comply with rule 1-1-2, entitled Mortgage Loan Originator Temporary License.
- In order to receive a temporary license, a licensed mortgage loan originator must sponsor a mortgage loan originator whose application is pending.
- Sponsoring mortgage loan originators are responsible and accountable for all activities conducted by the temporary licensee.
- The sponsoring mortgage broker must complete the Mortgage Loan Originator Temporary License Update Form posted on the Division of Real Estate’s website. This may be found at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm.
- The sponsoring mortgage loan originator shall complete and submit the form according to instructions provided.
- Mortgageloan originator shall allow five (5) business days for processing.
- Temporary licenses are only valid for 120 days from the initial date the temporary licensee completed the mortgage broker application and paid the $375.00 application fee.
Q:
When can I apply for a license as a mortgage loan originator?
A:
Online applications are now being accepted for licensure.
Back
Q:
Who is required to be licensed?
A:
All individuals, not otherwise exempted in section 12-61-904, Colorado Revised Statutes, who meet the definition of a mortgage loan originator as this term is defined in section 12-61-902(6), Colorado Revised Statutes. Additionally, all individual independent contractor loan processors and underwriters that are not directly supervised by a state-licensed loan originator.
Back
Q:
How do I license my company
A:
Mortgage companies are not required to be licensed. Mortgage companies, however, are required to be registered on the NMLS on and after January 1, 2011. The registration process on the NMLS began on October 1, 2010. To register your mortgage company, please visit the NMLS Home Page
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Q:
How do I apply for a license?
A:
In July of 2008, Congress passed the Housing and Economic Recovery Act of 2008. Title V of this Act is the S.A.F.E. Mortgage Licensing Act. The S.A.F.E. Act establishes minimum licensing standards for mortgage loan originators and requires states to adopt such provisions. As a result, the Colorado General Assembly passed House Bill 09-1085. Accordingly, all mortgage loan originators under the supervision of the Board of Mortgage Loan Origiantors are required to be licensed as state-licensed loan originators. Effectively, loan originators are required to be licensed by the Board of Motgage Loan Originators and registered through the Nationwide Mortgage Licensing System and Registry (the “NMLS&R”). The Division of Real Estate has created the following checklist to assist new applicants prior to January 1, 2010. Please click here to view the licensure check list
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Q:
What are the costs associated with receiving a license?
A:
The licensing fee that the Division of Real Estate assesses is currently posted at: Fee Schedule. Additionally, it is your responsibility to pay for your criminal background checks, surety bond, E&O coverage and all costs and fees associated with registration with the NMLS&R system.
Back
Q:
What are the education requirements for a mortgage loan originator?
A:
All education requirements are defined in rule 1-4-1, entitled Licensing Education, Examination and Continuing Education Requirements. This rule may be found at: Rules and Position Statements
Back
Q:
Are transactions with occupancy types of second home and investment property within the jurisdiction of the Director of the Division of Real Estate?
A:
Yes. All occupancy types on four or fewer units fall within the definition of a residential mortgage loan.
Back
Q:
How do I update my contact information?
A:
Licensees may update their contact information logging in to the Division of Real Estate's Online E-Services site and selecting the button labeled "View/Edit Details". Additionally, you’ll need to ensure your information is current with the Nationwide Mortgage Licensing System and Registry in accordance with their policy and procedures.
Back
Q:
How do I inactivate my mortgage loan originator license?
A:
In order to inactivate your mortgage loan originator license, you will need to complete the mortgage loan originator license update form. On this form, there is an area to request that the Division inactivates your license. You can find this form on the Division of Real Estate website, in the mortgage loan originator section under forms at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. Additionally, you will need to fax, mail or personally deliver this document to the Division of Real Estate. You are not able to inactivate your license online.
Back
Q:
How do I re-activate my license?
A:
In order to re-activate your mortgage loan originator license, you will need to complete the mortgage loan originator reactivation form. On this form, there is an area to request that the Division reactivates your license. You can find this form on the Division of Real Estate website, in the mortgage loan originator section under forms at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. You will need to mail or personally deliver this document to the Division of Real Estate. Additionally, you will need to provide proof to the Division of Real Estate that you are compliant with all licensing requirements, including but not limited to the surety bond, errors and omissions insurance, education and testing requirements. You are not able to re-activate your license online.
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General Information
Q:
If I am not compliant with the licensing requirements, what should I do?
A:
The Division of Real Estate recommends inactivating your license prior to becoming non-compliant. If you fail to inactivate your license, you may be subject to disciplinary action
Q:
Is Colorado a brick and mortar state?
A:
No, but a foreign company must register and license the company and an agent
in the state in order to conduct business in Colorado. Please visit
the Secretary of State's website for more information at:
http://www.sos.state.co.us/pubs/business/main.htm
Back
Q:
I am a hard money lender. Am I required to be licensed as a mortgage broker?
A:
Yes.
Q:
If I have recently submitted fingerprints for a real estate broker
license, do I need to resubmit?
A:
The Division of Real Estate will accept background checks submitted
for a Colorado real estate broker license that have been conducted
within the 12 months prior to the application for mortgage broker
license. The NMLS&R system has policies relating to background checks. For purposes of registering with the NMLS&R, you will need to follow their defined policies.
Back
Q:
How long will my license be valid?
A:
A licensed mortgage loan originator shall apply for license renewal and NMLS registration renewal every calendar year.
Back
Q:
Whom do I contact to have a background check done?
A:
The Colorado Bureau of Investigations
(CBI) performs the background checks for the Colorado state license. You should start this
process at least 3 months prior to submitting your application
for license. For more information on the CBI, please call
303-239-4208. To submit fingerprints to the NMLS&R, please contact them at http://www.stateregulatoryregistry.org/NMLS/AM/Template.cfm?Section=Home3.
Back
Q:
What if I have more questions?
A:
The Division of Real Estate is committed to providing quality
service to all of the entities we regulate and supervise. Our
normal office hours are 8 a.m. to 5 p.m. (Mountain Time), Monday
through Friday. Please e-mail us at
E-Mail,
call our office at 303-894-2166 or fax us at 303-894-7885 if
you have additional questions or comments.
Back
Q:
When will I be able to file a complaint against a mortgage
loan originator?
A:
The Division of Real Estate began accepting complaints on January 1, 2007. Complaints
outside the jurisdiction of the Mortgage Loan Originator Licensing
Act will be referred to the Office of the Attorney General
or to the local district attorney's office. To file a complaint, please visit: MLO Complaint Process
Back
Surety Bond Questions
Q:
What is a surety bond?
A:
A surety bond is a contract among at least three parties:
(i) the principal, (ii) the obligee, and (iii) the surety. Through
this agreement, the surety agrees to make the obligee whole
(usually by payment of money) if the principal defaults in its
performance of its promise to the obligee. The contract is formed
so as to induce the obligee to contract with the principal,
i.e., to demonstrate the credibility of the principal.
Back
Q:
How do I obtain a surety bond?
A:
Please contact your insurance
professional. There are approximately 500 companies authorized
to issue bonds in Colorado. Each company will have slightly
different underwriting criteria and premiums.
Back
Q:
Am I required to send my surety bond to the Division of Real
Estate?
A:
No. Please keep your surety bond on file as the Division may
request it in the future.
Back
Q:
When does the surety bond need to be effective?
A:
The surety bond must be effective prior to licensure.
Back
Q:
What is the amount of the surety bond?
A:
You need to ensure that you comply with rule 1-2-2, entitled Surety Bond Requirements for Mortgage Loan Originators. To access this rule, please visit: Rules and Position Statements
Back
Q:
Does the surety bond need to be specific to the Mortgage Loan Originator
Licensing Act?
A:
Yes. The surety bond needs to be specific to Colorado state statutes and conform with Board rules.
Back
Q:
Can I get one bond to cover all the employees in my business?
A:
Yes. All licensees need to comply with rule 1-2-2, entitled Surety Bond Requirements for Mortgage Loan Originators.
Back
Q:
Whom is the obligee on the surety bond?
A:
The obligee should be the "State of Colorado."
Q:
Is there a surety bond sample form?
A:
Yes. Please review the following document: Surety Bond Sample Form
Q:
How do I update my surety bond information?
A:
The Division of Real Estate maintains a "Mortgage Loan Originator License Update" form. You will find this on our website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. You may update any and all information collected on your mortgage Loan Originator application.
Exemption Questions
Q:
Who is exempt from licensure?
A:
A complete description of exemptions are listed under §12-61-904,
C.R.S. Back
Q:
How do I learn more about the Supervised Lenders license?
A:
The Office of the Attorney General manages the Supervised Lenders
license.
You may reach them at (303) 866-4527or at
http://www.ago.state.co.us/UCCC/ContactUs.cfm.
Back
Q:
Does my Mortgage Company Originator Registration exempt me from the Colorado Uniform Consumer Credit Code Supervised Lender License requirements?
A:
Please click here to view a memorandum from the Colorado Uniform Consumer Credit Code on this subject.
Back
Q:
If my company is registered with the Secretary of State, are we
exempt?
A:
No. The Secretary of State requires all companies operating in
Colorado to be registered. Registration with the Secretary of
State is not specific to the mortgage industry. The Secretary
of State is a separate state agency than the Department of Regulatory
Agencies. You may reach the Secretary of State at (303)894-2200
or at
http://www.sos.state.co.us/.
Back
Q:
Is correspondent lending an exemption?
A:
No. Correspondent lending is not an exemption.
Back
Q:
My company is a mortgage banker. Am I exempt?
A:
No. Only state and nationally chartered banks are exempt.
Back
Q:
What if I have more questions?
A:
The Division of Real Estate is committed to providing quality
service to all of the entities we regulate and supervise. Our
normal office hours are 8 a.m. to 5 p.m. (Mountain Time), Monday
through Friday. Please e-mail us at E-Mail,
call our office at 303-894-2166 or fax us at 303-894-7885 if
you have additional questions or comments.
Q:
When will I be able to file a complaint against a mortgage
loan originator?
A:
The Division of Real Estate began accepting complaints on January 1, 2007. Complaints
outside the jurisdiction of the Mortgage Loan Originator Licensing
Act will be referred to the Office of the Attorney General
or to the local district attorney's office. To file a complaint, please visit: MLO Complaint Process
Back
Q:
Is correspondent lending an exemption?
A:
No. Correspondent lending is not an exemption.
Back
Q:
My company is a mortgage banker. Am I exempt?
A:
No. Only state and nationally chartered banks are exempt.
Back
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