Colorado Amends its Mortgage Loan Originator Licensing and Mortgage Company Registration Act

Colorado has amended its licensing provisions under its Mortgage Loan Originator Licensing and Mortgage Company Registration Act.  The Act includes a provision to extend the Colorado Board of Mortgage Loan Originators for an additional 11 years, until September 1, 2029.

The Act clarifies that the 60 day period within which the Board must act on a license application begins to run on the date when all information, including any supplemental information necessary to process the application has been received, rather than on the date when the application is first received.  The Act also aligns the educational requirements for initial licensure as a mortgage loan originator with the standards set by the SAFE Act.  The previous provisions required Colorado mortgage loan originators to complete a mortgage lending fundamental course approved by the Board and including at least 9 hours of instruction.  However, the updated provisions require at least 24 hours of education as approved by the NMLS or its successor.

Additionally, the Act provides that initial applications for licensure as well as those for renewal or revocation shall be denied by the Board for prior convictions of applicants for felonies involving fraud, dishonesty, breach of trust, or money laundering, and encourages the governor of Colorado to appoint a licensed mortgage loan originator who is an employee or exclusive agent of, or who works as an independent contractor for, a Colorado-based mortgage company as a member of the Board of Mortgage Loan Originators.

The amended provisions are effective August 8, 2018.