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.
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.