Mortgage Lenders in Colorado are required to retain licensing with the Department of Regulatory Agencies since the passage of HR Bill 1085. This bill went into affect August 5, 2009, subject to company exemptions from the mortgage loan originator licensing requirements for employees of certain mortgage lenders in Colorado. On August 31st, 4,560 loan officers were notified their licenses were officially deactivated. Today only 4310 loan officers in the State of Colorado have active mortgage lender licenses according to the Department of Regulatory Agencies. (Incredible, isn't it? In one day our loan officer population dropped about 50%!)
Even though licensing is required few sellers, buyers, or even real estate agents think to verify the licensing of their mortgage lender. This is especially true in the case where the lender is being referred by a past client or because of a past business relationship. For instance if a buyer purchased a home last year, there would have been no state licensing required. If that same buyer decided to refinance their home during the recent refinance market this year, there is a good chance they would go back to their original lender who may or may NOT have adhered to the licensing requirements for mortgage lenders in Colorado established in the past year. Similarly, if a real estate agent has been doing business with a loan officer for the past several years, they might just assume their preferred lender complied with the states licensing laws.
What's the risk of not working with a licensed mortgage lender in Colorado? It is the Department of Regulatory Agencies, known as DORA, actually holding the individual loan officer responsible for minimum educational requirements and assures they maintain various types of insurance protecting consumers. Remember, too, this licensing is based on an INDIVIDUAL basis, not company licensure.
Think of it this way: would you even think about working with a real estate agent that was not licensed? Then why would you not verify that you are working with a mortgage lender in Colorado that is licensed?
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Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.
Ruth Vogt, Branch Manager
Colorado LMB #LMB100023827
Ruth,
"On August 31st, 4,560 loan officers were notified their licenses were officially deactivated. Today only 4310 loan officers in the State of Colorado have active mortgage lender licenses according to the Department of Regulatory Agencies."
Quite a change taking place in your state.
Interesting.
It's great to read what's happening in other areas.
Thanks.
It does amaze me that we still have so many lenders operating in the state without the required licensing. And, as I understand it, the penalty is to lose the ability to be licensed. Hello? Lose something they don't care about getting in the first place???
do we know why the 4310 loan officers lost their license?
How come it all happened in ONE day. Is there not a system in place by DORA monitoring the licensed Mortgage Brokers?
Thankfully WR Starkey keeps our education going all the time, keeping all parties (Both Loan Officers and their Support Staff) informed ALL the time.
Why would you trust something as important as your mortgage to someone who doesn't even care to get the proper licensing? It seems pretty simple, you should know who you are working with and take comfort in the fact that they have taken the time to get the property licensing.
It amazes me how people can risk losing something that it is so important and needed to be able to continue to provide for their families.
In this ever changing market, I sure hope agents and buyers would take the extra effort to verify the mortgage lender they are working with is currently licensed... especially when it's so easy to check on DORA's website.
Great point Ruth! Thank you for reminding those of us loan officers who are licensed and compliant with all of the rules that we should be encouraging our business partners to make sure that they are in business with people that are legit and following the rules!
Colorado was one of the last states to require licensing which seemed to have many out of state mortgage brokers active in marketing here. These changes in licensing reqirements have helped stop the risk associated with working with mortgage companies that are out of reach and unaccountable.
good info Ruth
Hi Ruth,
Thanks for the information. I like your last two paragraphs where you took the mundane ,reality of licensing, and turned it into a positive for the Reltors and the customer by emphasizing the training, and the insurance protection for the parties involved in the transaction.