2023 Colorado Revised Statutes › Title 12 - PROFESSIONS AND OCCUPATIONS (§§ 12-1-101 — 12-315-310) › DIVISION OF REAL ESTATE (§§ 12-10-101 — 12-10-906) › Article 10 - REAL ESTATE (§§ 12-10-101 — 12-10-906) › Part 7 - MORTGAGE LOAN ORIGINATORS (§§ 12-10-701 — 12-10-730) › Section 12-10-704 - License required - rules

(1)
(a)
Unless licensed by the board and registered with the nationwide mortgage licensing system and registry as a state-licensed loan originator, an individual shall not originate or offer to originate a mortgage or act or offer to act as a mortgage loan originator.
(b)
On and after January 1, 2010, a licensed mortgage loan originator shall apply for license renewal in accordance with subsection (5) of this section every calendar year as determined by the board by rule.
(2)
An independent contractor may not engage in residential mortgage loan origination activities as a loan processor or underwriter unless the independent contractor is a state-licensed loan originator.
(3)
An applicant for initial licensing as a mortgage loan originator shall submit to the board the following:
(a)
A criminal history record check in compliance with subsection (6) of this section;
(b)
A disclosure of all administrative discipline taken against the applicant concerning the categories listed in section
12-10-711 (1)(c)
; and
(c)
The application fee established by the board in accordance with section
12-10-718
.
(4)
(a)
In addition to the requirements imposed by subsection (3) of this section, on or after August 5, 2009, each individual applicant for initial licensing as a mortgage loan originator must have satisfactorily completed:
(I)
At least twenty hours of education as administered and approved by the Nationwide Multistate Licensing System and Registry or its successor; and
(II)
A written examination approved by the board. For the portion of the examination that represents the state-specific test required in the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008",
12 U.S.C. sec. 5101
et seq., as amended, the board may adopt the uniform state test administered through the Nationwide Multistate Licensing System and Registry or its successor.
(b)
The board may contract with one or more independent testing services to develop, administer, and grade the examinations required by subsection (4)(a) of this section and to maintain and administer licensee records. The contract may allow the testing service to recover from applicants its costs incurred in connection with these functions. The board may contract separately for these functions and may allow the costs to be collected by a single contractor for distribution to other contractors.
(c)
The board may publish reports summarizing statistical information prepared by the nationwide mortgage licensing system and registry relating to mortgage loan originator examinations.
(5)
An applicant for license renewal shall submit to the board the following:
(a)
A disclosure of all administrative discipline taken against the applicant concerning the categories listed in section
12-10-711 (1)(c)
; and
(b)
The renewal fee established by the board in accordance with section
12-10-718
.
(6)
(a)
Prior to submitting an application for a license, an applicant shall submit a set of fingerprints to the Colorado bureau of investigation. Upon receipt of the applicant's fingerprints, the Colorado bureau of investigation shall use the fingerprints to conduct a state and national criminal history record check using records of the Colorado bureau of investigation and the federal bureau of investigation. All costs arising from the fingerprint-based criminal history record check must be borne by the applicant and must be paid when the set of fingerprints is submitted. Upon completion of the fingerprint-based criminal history record check, the bureau shall forward the results to the board. The board shall acquire a name-based judicial record check, as defined in section
22-2-119.3 (6)(d)
, for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check.
(b)
If the board determines that the criminal background check provided by the nationwide mortgage licensing system and registry is a sufficient method of screening license applicants to protect Colorado consumers, the board may, by rule, authorize the use of that criminal background check instead of the criminal history record check otherwise required by this subsection (6).
(7)
(a)
On and after January 1, 2010, in connection with an application for a license as a mortgage loan originator, the applicant shall furnish information concerning the applicant's identity to the nationwide mortgage licensing system and registry. The applicant shall furnish, at a minimum, the following:
(I)
Fingerprints for submission to the federal bureau of investigation and any government agency or entity authorized to receive fingerprints for a state, national, or international criminal history record check; and
(II)
Personal history and experience, in a form prescribed by the nationwide mortgage licensing system and registry, including submission of authorization for the nationwide mortgage licensing system and registry to obtain:
(A)
An independent credit report from the consumer reporting agency described in the federal "Fair Credit Reporting Act",
15 U.S.C. sec. 1681a (p)
; and
(B)
Information related to any administrative, civil, or criminal findings by a government jurisdiction.
(b)
An applicant is responsible for paying all costs arising from a criminal history record check and shall pay the costs upon submission of fingerprints.
(c)
The board shall acquire a name-based judicial record check, as defined in section
22-2-119.3 (6)(d)
, for an applicant who has a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based judicial record check.
(8)
Before granting a license to an applicant, the board shall require the applicant to post a bond as required by section
12-10-717
.
(9)
The board shall issue or deny a license within sixty days after:
(a)
The applicant has submitted the requisite information to the board and the Nationwide Multistate Licensing System and Registry, including the completed application and any necessary supplementary information, the application fee, and proof that the applicant has posted a surety bond and obtained errors and omissions insurance; and
(b)
The board receives the completed criminal history record check and all other relevant information or documents necessary to reasonably ascertain facts underlying the applicant's criminal history.
(10)
(a)
The board may require, as a condition of license renewal on or after January 1, 2009, continuing education of licensees for the purpose of enhancing the professional competence and professional responsibility of all licensees.
(b)
Continuing professional education requirements shall be determined by the board by rule; except that licensees shall be required to complete at least eight credit hours of continuing education each year. The board may contract with one or more independent service providers to develop, review, or approve continuing education courses. The contract may allow the independent service provider to recover from licensees its costs incurred in connection with these functions. The board may contract separately for these functions and may allow the costs to be collected by a single contractor for distribution to other contractors.
(11)
(a)
The board may require contractors and prospective contractors for services under subsections (4) and (10) of this section to submit, for the board's review and approval, information regarding the contents and materials of proposed courses and other documentation reasonably necessary to further the purposes of this section.
(b)
The board may set fees for the initial and continuing review of courses for which credit hours will be granted. The initial filing fee for review of materials shall not exceed five hundred dollars, and the fee for continued review shall not exceed two hundred fifty dollars per year per course offered.
(12)
The board may adopt reasonable rules to implement this section. The board may adopt rules necessary to implement provisions required in the federal "Secure and Fair Enforcement for Mortgage Licensing Act of 2008",
12 U.S.C. sec. 5101
et seq., as amended, and for participation in the nationwide mortgage licensing system and registry.
(13)
In order to fulfill the purposes of this part 7, the board may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this part 7.
(14)
The board may use the nationwide mortgage licensing system and registry as a channeling agent for requesting information from or distributing information to the department of justice, a government agency, or any other source.
Amended by 2022 Ch. 114, § 13, eff. 4/21/2022.
Amended by 2019 Ch. 125, § 72, eff. 1/1/2019.
Renumbered from C.R.S. §
12-61-903
and amended by 2019 Ch. 136, § 1, eff. 10/1/2019.
Amended by 2019 Ch. 125, § 16, eff. 4/18/2019.
Amended by 2018 Ch. 282, § 3, eff. 8/8/2018.
Amended by 2016 Ch. 117, § 2, eff. 8/10/2016.
Amended by 2013 Ch. 393, § 3, eff. 7/1/2013.
L. 2006: Entire part added, p. 1582, § 1, effective July 1. L. 2007: Entire section amended, p. 1732, § 4, effective 1/1/2008. L. 2009: Entire part amended, (HB 09 -1085), ch. 303, p. 1615, § 1, effective August 5. L. 2010: (1)(a), (1)(b), IP(2), (2)(c), (3), IP(4), (4)(b), (5), (5.5)(c), and (6) to (12) amended, (HB 10 -1141), ch. 280, p. 1285, § 5, effective August 11. L. 2013: (1)(a) amended and (5.7) repealed, (SB 13-156), ch. 393, p. 2286, § 3, effective July 1. L. 2016: (3)(a) amended, (HB 16-1306), ch. 117, p. 331, § 2, effective August 10. L. 2018: (3)(a) and (7) amended, (HB 18-1174), ch. 282, p. 1762, § 3, effective August 8.
(1) This section is similar to former § 12-61-903 as it existed prior to 2019.
(2) Before its relocation in 2019, this section was amended in HB 19-1166. Those amendments were superseded by the repeal and reenactment of this title 12, effective October 1, 2019. For those amendments to the former section in effect from April 18, 2019, to October 1, 2019, see HB 19-1166, chapter 125, Session Laws of Colorado 2019.