Mortgage brokers act as middleman between borrowers and lending institutions, working with clients to determine which mortgage products best suit their needs.In order to work as a mortgage broker in Colorado, you have to get the proper license, which involves an application, pre-licensing training and testing, a background check, and continuing education.You can either start your own company or work for a mortgage broker once you are licensed.
Step 1: Get your first background check.
To begin the license application process, you must submit a set of fingerprints to the Colorado Bureau of Investigation.The Colorado Department of Regulatory Authorities has a website where you can find a location for fingerprints.If you have a criminal record or have had a professional license revoked in the past, you can request a preliminary advisory opinion from the NMLS.This will let you know if you are eligible for a license before you pay the associated fees.
Step 2: Register with NMLS.
Start filling out the application for a mortgage loan originator license by creating an account on the NMLS website.You can request your own account or your employer can create it for you.Information about your personal and occupational history will be entered on the application.
Step 3: You should get a second background check.
You must have a background check done by the NMLS even though you have already been fingerprinted.You can schedule an appointment to have your fingerprints taken.Depending on how the fingerprints were scanned, you may be able to submit a copy of them.The cost for electronic scanning and paper printing is more than the price for fingerprints.
Step 4: It is necessary to fulfill the educational requirements.
To be approved for a license, you must complete 20 hours of training through an organization approved by the NMLS.Federal law and regulations, ethics, and two hours on nontraditional mortgage products are included in the training.Colorado will require two hours of training on state-specific regulations, which can be covered in one of the required courses.The NMLS has approved many different educational institutions to offer these classes, so you can choose which one is most convenient for you.Depending on your schedule, you can either take each class individually or take longer classes that fulfill multiple requirements.If you took the courses more than three years ago, you will have to take them again, because the training must not be done before the submission of your application.
Step 5: You need to pass your exams.
The NMLS administers the S.A.F.E Mortgage Loan Originator Exam after you have completed the training programs.You must be able to answer questions about the roles of the various regulatory agencies, state and federal laws that govern mortgage loan origination, as well as the regulations you must abide by as a mortgage broker, in order to do well on the tests.You need to provide proof that you completed the training in order to register for the tests.In order to pass the exams, you must answer 75% of the questions correctly.
Step 6: Purchase a surety bond.
A surety bond is a written agreement similar to a specialized insurance policy where financial compensation is made in the event that the principal fails in their duties.Private companies can offer these bonds.The surety bond should be in the amount of $25,000.Depending on the size of the company and the amount of their coverage, you may be able to be covered by their surety bond.
Step 7: Errors and omissions insurance is required.
In the event that you are deemed responsible for complaints regarding a service you provided or failed to provide, Colorado requires all mortgage brokers to hold insurance policies that offer protection.Make sure your policy complies with the minimum levels required by the state.Depending on the number of employees and the amount of coverage, you may be able to operate under your employer's insurance policy.
Step 8: You need to complete your application.
You must apply for a mortgage loan originator license on the Division of Real Estate's website after you have fulfilled all of the requirements.Your license number will be given to you when your application is approved.Call the Division of Real Estate if you want your NMLS online record updated with your new license number.
Step 9: Stay up to date with continuing education requirements.
You will need to take at least eight hours of continuing education courses each year to get your license renewed.Each year, the Colorado Division of Real Estate issues a two-hour state-specific course for you to take.Evidence of completion should be submitted to the Division of Real Estate.You can't repeat the classes that you took to get your initial license.
Step 10: Your license should be renewed.
You have to renew your license with the Colorado Division of Real Estate every year in order to remain a mortgage broker.You have two months to get your license renewed if you don't do it in a timely manner.If you don't get your license back during that time, you will have to apply for a license again in order to work as a mortgage broker in Colorado.
Step 11: Follow the law
You will be required to interview your clients regarding their financial situations and suggest appropriate mortgage products based on that information.All of the costs associated with the mortgage must be disclosed.You will learn the full details of the other regulations when you take your required training courses.You may be required to pay fines or have your license revoked if you don't follow any state or federal laws.