Is your Colorado Mortgage Broker Licensed?   

Does the Colorado Realtor you are working have an active License?

For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com

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I got an email this week from DORA (Colorado Department of Regulatory Agencies) about the number of Mortgage professionals who just had their licenses inactivated; and realized it was a great idea for a blog post.  

According to an article in 5280, The Colorado Division of Real Estate inactivated 4,560 mortgage-broker licenses—more than half the licenses in the state—because brokers didn’t keep up with their licensing paperwork. It’s unclear how many of those brokers remain active, but some may have simply left the business as the economy struggles.

Also, according to an article in the Denver Post ” More than half of Colorado’s mortgage brokers have had their licenses inactivated because they failed to comply with new education and testing requirements that took effect early last month.  The Colorado Division of Real Estate on Monday inactivated 4,560 licenses of brokers who have failed to comply with the law. About a third of those were held by out-of-state brokers.

Real Estate License Requirements

As a Realtor, there are many things I have to do to keep my license in good standing, including paying lots of money for dues, having current  Errors and Omissions Insurance; and completing a certain amount of continuous education on a yearly basis.      When I originally got my license, I had to complete a specified amount of coursework, pass a comprehensive test, as well as go through a background check by the Colorado Bureau of Investigation.  Yes, I did get fingerprinted.

New Mortgage Professional License Requirements

Mortgage brokers in Colorado until recently didn’t have licensing requirements.  But they are now required to also go through a background check, have a surety bond, secure Errors and Omission Insurance, as well as complete coursework and pass a test. 

According to the DORA web site, “On and after August 5, 2009, all mortgage loan originators conducting business in this state must be licensed with the Division of Real Estate pursuant to House Bill 1085 . Only those mortgage loan Originators who are licensed or exempt from licensee by law may originate a mortgage, offer to originate a mortgage, act as a mortgage loan originator, or offer to act as a mortgage loan originator.”  Also, if I understand the law correctly, mortgage loan originators who work for a bank are not required to be licensed.  If you want more info, go to the DORA web site; and it gives specifics.

Do your research

If you ever want to double check and make sure the person you are working with has an active license, DORA has a great search page.   As an example, when I went to the search page, I put in Kathy as a first name, and 12 pages of Realtors and Appraisers came up.

Also, if someone is involved in a disciplinary action, this information will also show up in this web search, see right hand column in the screen shot picture.

As a licensed Colorado Real Estate Broker, I take my license very seriously.   I also feel I have a responsibility to the general public to help inform and educate them.

Make sure you know who you are doing business with

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For more information about Colorado Springs area real estate, contact Kathy Torline   KTorline@msn.com or 719-287-1049