Colorado Enacts MLO Licensing Provisions
The Colorado Division of Real Estate has adopted provisions regarding the temporary authority to act as a mortgage loan originator. These provisions are effective immediately.
Temporary MLO Requirements
The new provisions set forth a list of requirements that must be met by an applicant applying for a mortgage loan originator temporary license. Applicants must: 1) submit a set of fingerprints to the Nationwide Multistate Licensing System and Registry (NMLS); 2) be eligible for temporary authority in accordance with the policies and procedures set forth by the NMLS; and 3) be employed and sponsored by a Colorado NMLS registered mortgage company.
Additionally, applicants must not have been denied an application for a mortgage loan originator license in any jurisdiction or have had his or her license revoked or suspended in any jurisdiction. Applicants must also not have been subjected to a cease and desist order or have been convicted or, or pled guilty or nolo contendere to, a misdemeanor or felony.
The applicant must also meet one of the following: 1) one year prior to applying for a temporary license he or she must have registered in the NMLS as a loan originator for a depository, such as a bank; or 2) thirty days prior to applying for a temporary license he or she must have had a license issued as a mortgage loan originator in another jurisdiction.
License Application Requirements
Upon notice of the issuance of temporary authority from the NMLS, an applicant has seven business days to submit his or her license application, which includes the following state specific requirements: 1) submit a set of fingerprints to the Colorado Bureau of Investigations to be used for a criminal history check; 2) acquisition of a surety bond pursuant to section 12-10-717, C.R.S.; 3) acquisition of the errors and omissions insurance pursuant to section 12-10-707, C.R.S.; 4) identify the Responsible Colorado Licensed Mortgage Loan Originator who will be responsible for supervising the applicant for the duration of the temporary license; and 5) payment of the non-refundable application fee.
Expiration of the Temporary License
The temporary mortgage loan originator license will expire on the soonest of the following possible dates: 1) the applicant withdraws his or her application; 2) the Board denied the applicant’s application; 3) the Board approves and issues a Colorado mortgage loan originator license; 4) the termination date between the Responsible Colorado Licensed Mortgage Loan Originator and the holder of the temporary license; or 5) one hundred twenty days after the date the applicant was issued the temporary license.
For the full text of the regulation, please refer to https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=6161&fileName=4%20CCR%20725-3
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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