Colorado Issues Rule Providing Temporary Authority for MLOs

The Colorado Department of Regulatory Agencies, Division of Real Estate recently published an emergency rule to allow mortgage loan originators (MLOs) that meet certain requirements to continue to temporarily originate loans in Colorado for up to 120 days without a license after moving (i) from one state to another; or (ii) from a depository institution to a non-depository institution. The amended licensing provisions went into effect on November 24, 2019. 

The emergency rule provides that, in order to be eligible for a temporary MLO license, an individual must meet, among other things, the following conditions:

• Be employed and sponsored by a Colorado NMLS registered mortgage company.
• Be either: (i) a registered MLO working for a depository (i.e., bank or savings association) during the one year period preceding the date of application for a temporary license; or (ii) a licensed MLO in another state during the 30 day period preceding the date of application for a temporary license.
• Complete and submit the Colorado Division of Real Estate’s MLO License Application within seven business days of receiving notice of issuance of the temporary MLO license.

The MLO temporary license will allow qualifying MLO license applicants to temporarily act as a MLO while their MLO license application is pending, but will expire on one of the following dates, whichever is sooner: (i) 120 days after the date the temporary license was issued; (ii) the date the applicant’s application is withdrawn; (iii) the date the application is denied; (iv) the date the MLO license is approved; or (v) the date the applicant is no longer supervised by a Colorado-licensed MLO.