Colorado Regulatory Update

Colorado Regulatory Update

The Colorado Department of Regulatory Agencies, Division of Real Estate (“Division”), recently promulgated rules related to mortgage loan originator licensing, effective March 1, 2016.

COLORADO 4 CCR 725-3

 

Requirement for Original Licensure

An applicant for licensure as a Colorado mortgage loan originator must, in addition to previous requirements, successfully complete two hours of Colorado specific pre-licensing education reviewed and approved by the Nationwide Mortgage Licensing System and Registry (“NMLS”) or by a company contracted by NMLS for the review and approval of pre-licensing courses.  The two hours of Colorado specific education replaces what was a required general elective within the 20 hours of pre-licensing education.  Applicants may also complete the two hours of Colorado specific pre-licensing education as a standalone course outside of the 20 hour pre-licensing education.

 

Applicants must also successfully complete the S.A.F.E. Mortgage Loan Originator examination developed by NMLS and consisting of two sections, a national component and a uniform state test (“UST”) component.

 

Continuing Education Requirement

Licensed individuals must complete at least eight hours of continuing education courses, which must include one hour of Colorado specific education, reviewed and approved by the NMLS or by a company contracted to review and approve continuing education courses.  The Colorado specific education may replace what was a required general elective within the eight hour continuing education course or may be completed as a standalone course.  The continuing education requirements must be completed each calendar year and prior to license and registration renewals or reinstatements.  Previously, an additional two hour state specific course was required.

 

Renewal, Reinstatement, Inactivation, Suspension, Surrender or Revocation

Individuals who fail to maintain a valid license for a period of up to five years after the date of license expiration and were compliant with the annual continuing education requirements at the time of license expiration will need to complete the following:

·        Register with NMLS in accordance with policies and procedures established by the NMLS.  This includes, but is not limited to completion of the correct registration application, authorization for the registry to pull a credit report and payment of any fees associated with registration;

·        Submit fingerprints to NMLS in accordance with policies and procedures established by NMLS;

·        Obtain a compliant surety bond;

·        Obtain compliant errors and omissions insurance; and

·        Complete the Colorado Division of Real Estate specific license application and pay the application fee.

 

Individuals who fail to maintain a valid license for a period of up to five years after the date of license expiration and who were not compliant with the annual continuing education requirements at the time of license expiration will need to complete the following:

·        Comply with all requirements set forth above, and

·        Complete at least eight hours of “late” continuing education courses, which must include one hour of Colorado specific education, reviewed and approved by NMLS or by a company contracted to review and approve continuing education courses.

 

Individuals who fail to maintain a valid license for a period of more than five years after the date of license expiration will need to complete the following:

·        Comply with all requirements set forth above; and

·        Retake and successfully pass the S.A.F.E. Mortgage Loan Originator examination, developed by NMLS, consisting of two sections.  These two sections include a national component and a UST component.  An individual must pass the test in accordance with policies and procedures developed and administered by the NMLS and in compliance with the S.A.F.E. Mortgage Licensing Act.