(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.