On
and after January 1, 2007, all mortgage brokers conducting business in this
state must be registered with the Division of Real Estate pursuant to HB06-1161.
Only those mortgage brokers who are registered or exempt from registration by
law may broker a mortgage, offer to broker a mortgage, act as a mortgage
broker, or offer to act as a mortgage broker.
1. Getting a Colorado Real Estate Mortgage Broker Registration
Criminal
Background Information
Surety Bond
Application
2. General Information
Applications
will be accepted online starting October 1, 2006. Prior to submitting an
application, a set of fingerprints for a criminal history record check must be
submitted to the Colorado Bureau
of Investigation (CBI). The required background checks take approximately 3
months to process. Please start this process as soon as possible.
Below are answers to questions
you might have about becoming a registered mortgage broker.
When can I
apply for registration as a mortgage broker?
Can I get a
letter of exemption for my company/employees?
Who is
required to be registered?
Will I be
disqualified from registering if I have a conviction more than five years old?
Is Colorado
a brick and mortar state?
Can I get
one bond to cover all the employees in my business?
If I have
recently submitted fingerprints for a real estate broker license, do I need to
resubmit?
Who is exempt
from registration?
How do I
apply for registration?
What are the
costs associated with a registration?
What are the
education requirements for a mortgage broker?
How long will
my registration be valid?
Whom do I
contact to have a background check done?
What is a
surety bond?
How do I
obtain a surety bond?
What is an
FHA Approved Lender?
What if I
have more questions?
When can I apply for registration as a mortgage
broker?
You can apply online with our office starting October 1, 2006. Please start the
process by contacting CBI and getting your criminal background check.
Can I get a letter of exemption for my
company/employees?
Colorado does not issue letters of exemption.
Who is required to be registered?
All persons that broker a mortgage, offer to broker a mortgage, act as a
mortgage broker, or offer to act as a mortgage broker are required to register
with the Division of Real Estate. Section 12-61-904, C.R.S., exempts certain
persons from this registration requirement.
Can I get one bond to cover all the employees in my business?
No. The statute requires the registration of individual brokers. Each broker
must individually meet the registration requirements.
Will I be disqualified from registering if I
have a conviction more than five years old?
No However, if you have an arrest showing on your background check you will be
required to provide the court records to prove the conviction is more than five
years old.
Is Colorado a brick and mortar state?
No, but a foreign company must register the company and an agent in the state
in order to conduct business in Colorado. Please visit the Secretary of State's
website for more information at: http://www.sos.state.co.us/pubs/business/main.htm
If I have recently submitted fingerprints for a
real estate broker license, do I need to resubmit?
The Division of Real Estate will accept background checks submitted for a Colorado real estate broker licenses that have been conducted in the 12 months prior to the
application for mortgage broker registration.
Who is exempt from
registration?
Complete descriptions of exemptions are listed under §12-61-904, C.R.S. in
summary the following is exempt:
- Federal and state agencies and political subdivisions
of the state.
- Owner who finances a purchase of real property.
- Bank, saving bank, savings and loan association,
industrial bank, industrial loan company, credit union, or bank or
savings association holding company organized under federal law, and
subsidiary or employee of the above.
- Attorney who renders legal advice, but who is not in
the primary business of brokering a mortgage.
- FHA approved mortgagee.
- Person who funds a mortgage, but does not solicit a
borrower and does not participate in the negotiation of the residential
mortgage.
How do I apply for a registration?
On or after October 1, 2006 you can submit your application online at http://www.dora.state.co.us/real-estate/mb.
Processing completed applications will take up to 21 days.
NOTE: Processing does not start until we have received a
complete application which consists of:
1.
Application
2.
Surety
Bond
3.
Criminal
Background Check
4.
Fee
What are the costs associated with a registration?
The Division of Real Estate fee to register as a mortgage broker is $200.
Additional costs you are responsible for are the criminal background check and
surety bond.
What are the education requirements for a mortgage broker?
None at this time.
How long will my registration be valid?
A registered mortgage broker shall apply for registration every 3 years.
Whom do I contact to have a background check done?
All background checks are done through Colorado
Bureau of Investigations (CBI). You should start this process at least 3
months prior to submitting an application to the Real Estate Board. For more
information on CBI you can call CBI at 303-239-4208.
What is a surety bond?
A surety bond in the minimum sum of twenty five thousand dollars, executed by
the applicant as principal and by a surety company qualified and authorized to
do business in this state as surety, conditioned upon compliance with the
provisions of the law and with the rules and regulations of the law, Section
12-61-903(4) and 12-61-907 C.R.S.
How do I obtain a surety bond?
A bond is a form of insurance, please contact your insurance professional.
There are approximately 500 companies authorized to issue bonds in Colorado, each company will have slightly different underwriting criteria and premiums.
What is an FHA Approved Lender?
You can find this information at http://www.hud.gov/offices/hsg/sfh/lender/20020902.pdf.
What if I have more questions?
The Division of Real Estate is committed to providing quality service to all of
the entities we regulate and supervise. Our normal office hours are 8 a.m. to 5
p.m. (Mountain Time), Monday through Friday. Please e-mail us at mb@dora.state.co.us, call our office at
303-894-5953 or fax us at 303-894-7885 if you have additional questions or
comments.
