Mortgage Lenders in Colorado are required to retain licensing with the Department of Regulatory Agencies since the passage of HR Bill 1085. This bill went into affect August 5, 2009, subject to company exemptions from the mortgage loan originator licensing requirements for employees of certain mortgage lenders in Colorado. On August 31^st, 4,560 loan officers were notified their licenses were officially deactivated. Today only 4310 loan officers in the State of Colorado have active mortgage lender licenses according to the Department of Regulatory Agencies. (Incredible, isn't it? In one day our loan officer population dropped about 50%!)

Even though licensing is required few sellers, buyers, or even real estate agents think to verify the licensing of their mortgage lender. This is especially true in the case where the lender is being referred by a past client or because of a past business relationship. For instance if a buyer purchased a home last year, there would have been no state licensing required.  If that same buyer decided to refinance their home during the recent refinance market this year, there is a good chance they would go back to their original lender who may or may NOT have adhered to the licensing requirements for mortgage lenders in Colorado established in the past year. Similarly, if a real estate agent has been doing business with a loan officer for the past several years, they might just assume their preferred lender complied with the states licensing laws.

What's the risk of not working with a licensed mortgage lender in Colorado? It is the Department of Regulatory Agencies, known as DORA, actually holding the individual loan officer responsible for minimum educational requirements and assures they maintain various types of insurance protecting consumers. Remember, too, this licensing is based on an INDIVIDUAL basis, not company licensure.

Think of it this way: would you even think about working with a real estate agent that was not licensed? Then why would you not verify that you are working with a mortgage lender in Colorado that is licensed?

Links are listed below for the following:

Exemption List

Approved Mortgage Lender List