1/2 of Colorado Mortgage Brokers' Licenses Deactivated

By
Real Estate Agent with Referral Only Realty

Always use a broker you know and trust. According to Renee McGaw of the Denver Business Journal, as of today, the Colorado Division of Real Estate has deactivated "4,560 mortgage broker licenses." Back in 2008, the state instituted licensing of mortgage brokers and all of the state's brokers were given licenses with the understanding that within 1 year, they would complete the state's mandatory licensing tasks of continuing education, a licensing test and a criminal background check. Many brokers rose to the challenge and fulfilled the requirements by the January 1, 2009 deadline. According to McGaw, the state extended the deadline and gave numerous warnings of the looming new deadline, but as of August 31st, those who had not completed the requirements had their licenses deactivated.

Erin Toll, Director of CODORA said in the article (Denver Business Journal, 2009), "We are left with less than half the number we had Friday."  That number is down to 4,252, licensed brokers.

Why so many dropped? It could be simply a matter of attrition - with the changing lending regulations, credit freezes and harsh economic times, many brokers could have left the game and therefore not completed the licensing requirements. Hopefully, those out there still in operation are licensed, but that may not be the case.

 What does this mean for consumers? Theory would suggest that those brokers operating in CO are licensed and have fulfilled the state requirements. Reality might suggest otherwise. Consumers should double-check with their mortgage broker to make sure he or she is actually licensed. One way to veritfy is to visit the state's online database to search for licensed mortgage brokers, real estate brokers and appraisers: Search Here

Real estate agents - it may be time to check the database yourself to see if your mortgage broker made the cut - always work with a licensed, trusted broker.

To read the full article, please visit the Denver Business Journal Online (click the link or visit www.bizjournals.com/denver). Thanks to Renee McGaw for reporting on this important information.

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Thanks for reading my blog! For help in finding the perfect real estate agent for your needs, please feel free to contact me, Chrissy Harrison, the Real Estate Matchmaker (720) 205-7546

Comments (3)

Dena Stevens Coriz
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004

Thanks for the information, I didn't know it there were so many mortgage lenders now gone. And it's good news for consumers, the lenders who are no longer around are probably gone for a reason. I noticed in the local Parade of Homes Magazine how many new faces were now advertised, also a good thing. The entire Real Estate industry in moving and shaking, many are retiring or just plan leaving.

Sep 20, 2009 09:28 AM
Chrissy Harrison
Referral Only Realty - Longmont, CO

I agree that it is good news for consumers Dena. I think the ones who stayed in the game are most likely the 'good ones' and new brokers moving into the market are taking appropriate steps to become licensed. Things are looking up all over the state!

Sep 20, 2009 01:07 PM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Chrissy,
Right now there are a few brokers and just the big lenders ! , but that's is true, I'm amazed how this is happening !

 

Apr 07, 2010 04:31 PM