4500 Colorado Mortgage Brokers Axed!

By
Real Estate Agent with Colorado Realty Professionals

I recently wrote about the upcoming licensing problems many Colorado Mortgage Brokers would face.  This article brought about a lively discussion about whether this was positive or not.  I stand by my opinion this is a good thing, despite many great counter points brought up (You can read the story and comments here.)

It’s a moot point now.  It’s done, and there will be significantly less competition for competent (and rules following) mortgage brokers in Colorado.  If you are a consumer either looking to start the process, or currently waist deep in it, I would suggest you check and see if your mortgage broker is still licensed!

The following is from the Colorado’s Division of Real Estate.

DORA logo

****NEWS ALERT****

The Colorado General Assembly passed House Bill 1085 in 2009. This bill became effective August 5th, 2009. House Bill 1085 defines circumstances in which the Director may inactivate a mortgage loan originator license if they have failed to comply with the education and testing requirements.

· As a result, the Director inactivated 4,560 licenses on August 31, 2009.

· Individuals whose licenses have been affected will receive an inactivation notice e-mail. THIS IS NOT THE INACTIVATION NOTICE E-MAIL.

· Individuals whose licenses are inactive are prohibited from practicing as a mortgage loan originator or in any other capacity which requires a license.

· Individuals who continue to practice with an inactive license are subject to all forms of discipline prescribed in the Mortgage Loan Originator Licensing Act, including permanent revocation and fines.

· Direct managers of individuals with inactive licenses are also subject to disciplinary action if they allow such individuals to continue to practice.

· In order to reactivate a license, the individual must be compliant with all licensing provisions and are required to pay an administrative fee of $500.00, in the form of a money order or cashiers check pursuant to Director Rule 1-4-1, entitled Mortgage Loan Originator Licensing Education.

· Individuals seeking reactivation shall complete the Mortgage Loan Originator Reactivation Form and provide proof of compliance, including but not limited to the surety bond, errors and omissions insurance, and completion of the education and testing requirements.

 

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Comments (4)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Soundfs like all states should adopt this plan.  Would eliminate at least some of the brokers with severe lack of knowledge and skills.

Sep 17, 2009 02:47 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Interesting... I hope this results in those who were incomptent leaving the business... What do you think?

Sep 17, 2009 02:48 AM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

My question would be about the bulk of folks that were cut off. How many are affected vs. the state cleaning out dead license holders? Same thing happend in Indiana about 2 yrs ago.

Thanks

Sep 17, 2009 04:06 AM
Bob Schenkenberger
Colorado Realty Professionals - Greenwood Village, CO
Denver Real Estate

Joan, I think that is the biggest benefit.  Those not interested enough to jump through the hoops probably shouldn't be in the business.  They were given over a year to take a couple of classes and pass a test.

Tony, There was some house cleaning, but I saw a number that estimated over 3000 of the de-activations were practicing mortgage brokers.

Here is a link to the original article I wrote about this.  The comments there are interesting as well!

http://bloghomedenver.com/2009/07/26/number-of-colorado-mortgage-brokers-to-be-slashed/

Sep 17, 2009 04:20 AM