How do I obtain a temporary license?
1. Mortgage brokers seeking a temporary license must have:
a. Submitted their fingerprints for the criminal background check.
b. Acquired and maintain a $25,000 surety bond.
c. Acquired and maintain the requisite Errors and Omissions insurance.
d. Completed the online application and paid the $200.00 application fee.
2. In order to receive a temporary license, a licensed mortgage broker must sponsor a mortgage broker whose application is pending.
3. Sponsoring mortgage brokers are responsible and accountable for all activities conducted by the temporary licensee.
4. The sponsoring mortgage broker must complete the Mortgage Broker Temporary License Update Form posted on the Divison of Real Estate's website. This may be found at http://www.dora.state.co.us/real-estate/mortgage.MBForms.htm
5. The sponsoring mortgage broker shall complete and submit the form according to instructions provided.
6. Mortgage brokers shall allow five (5) business days for processing.
7. Temporary licenses are only valid for 120 days from the initial date the temporary licensee completed the mortgage broker application and paid the $200.00 application fee.
When can I apply for a license as a mortgage broker?
Online applications are now being accepted for licensure.
Who is required to be licensed?
All persons who broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker are required to be licensed with the Division of Real Estate. Section 12-61-904, C.R.S., exempts certain persons from this licensing requirement.
How do I license my company?
Companies are unable to be licensed. The Mortgage Broker Licensing Act (the "Act") requires individuals to be licensed. All the requirements for becoming licensed are specific to the individual.
How do I apply for a license?
You may submit your application online at https://eservices.psiexams.com/index_login.jsp. 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 (legible, complete, and within compliance)
2. Surety Bond
2. Errors and Omissions coverage
3. Criminal Background Check (within compliance)
4. Fee.
If you have ever been arrested, you should begin the process to obtain the final disposition documentation from the appropriate court as soon as possible. This will reduce delays in completing the application process.
What are the costs associated with receiving a license?
The licensing fee that the Division of Real Estate assesses is $200.00. Additionally, it is your responsibility to pay for your criminal background check, surety bond and E&O coverage.
What are the education requirements for a mortgage broker?
1. Pre-Licensing Education - All mortgage brokers will need to complete the pre-licensing education requirements and the requisite test. This will need to be completed by all mortgage brokers prior to January 1, 2009. Mortgage brokers who fail to complete the pre-licensing and test requirement are subject to disciplinary action regarding their license. The Director, Erin Toll, appointed a 10 member Mortgage Broker Education Task Force to help develop and determine the number of pre-licensing hours required, course content, course approval, the pre-licensing test and continuing education.
2. All mortgage brokers will need to complete a minimum of nine (9) hours of continuing education every three years.
Are transactions with occupancy types of second home and investment property within the jurisdiction of the Director of the Division of Real Estate?
Yes. All occupancy types on four or fewer units fall within the definition of a residential mortgage loan.
How do I update my contact information?
The Division of Real Estate maintains a "Mortgage Broker License Update" form. You will find this on our website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. You may update any and all information collected on your mortgage broker application.
How do I apply to have Temporary Mortgage Broker status?
1. 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.
2. Obtain your individual $25,000.00 surety bond. Please note that you need to have your surety bond in order to complete the online application.
3. Obtain your individual Errors & Omissions coverage for not less than $100,000.00 for each licensed individual per covered claim, with an annual aggregate limit of not less than $300,000.00 per licensed individual.
4. Complete the online application and pay the required $200.00 application fee.
5. Complete and submit the Mortgage Broker Temporary License Update Form
Is Colorado a brick and mortar state?
No, but a foreign company must register and license 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 license that have been conducted within the 12 months prior to the application for mortgage broker license.
How long will my license be valid?
A licensed mortgage broker shall apply for licensure every 3 years.
Whom do I contact to have a background check done?
The Colorado Bureau of Investigations (CBI) performs the background checks. You should start this process at least 3 months prior to submitting your application for license. For more information on the CBI, please call 303-239-4208.
When will I be able to file a complaint against a mortgage broker?
We will begin accepting and tracking complaints on or after January 1, 2007 for reporting to the General Assembly. Complaints outside the jurisdiction of the Mortgage Broker Licensing Act will be referred to the Office of the Attorney General or to the local district attorney's office.
How will I know when my background check is received by the Division of Real Estate?
After you have completed your application online, you will be able to check your status. If the Division of Real Estate has not received your background check, your status will be "pending background check." Once the Division has received your background check, your status will be updated and you will be notified.
What is a surety bond?
A surety bond is a contract among at least three parties: (i) the principal, (ii) the obligee, and (iii) the surety. Through this agreement, the surety agrees to make the obligee whole (usually by payment of money) if the principal defaults in its performance of its promise to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal.
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.
Am I required to send my surety bond to the Division of Real Estate?
No. Please keep your surety bond on file as the Division may request it in the future.
When does the surety bond need to be effective?
The surety bond must be effective prior to registration.
What is the amount of the surety bond?
All licensees need to maintain a $25,000.00 surety bond.
Does the surety bond need to be specific to the Mortgage Broker Licensing Act?
Yes. Surety bonds are specific to state statutes.
Can I get one bond to cover all the employees in my business?
No. The statute requires the licensing of individual brokers. Each broker must individually meet the license requirements.
Whom is the obligee on the surety bond?
The obligee should be the "State of Colorado."
Is there a surety bond sample form?
Yes. Please review the following document: Surety Bond Sample Form
How do I update my surety bond information?
The Division of Real Estate maintains a "Mortgage Broker License Update" form. You will find this on our website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. You may update any and all information collected on your mortgage broker application.
