5 Things You Need to Know to Obtain Your Colorado Mortgage License

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mortgage licensing in ColoradoThe Colorado real estate market is hot and the trends seem to indicate that it is going to remain a seller’s market for the foreseeable future. The demand for housing is driven by multiple economic factors, making the average median price for single-family housing jump up 8.3% from 2016 to 2017. Townhomes and condos have also seen a significant upward trend in median sales prices.

Those who are looking to purchase a home need to be able to move quickly to secure financing as the market inventory continues to tighten. Now may be the time to consider adding Colorado to your footprint.

Here are 5 things you need to know about applying for a Colorado mortgage license.

Mortgage Company Does Not Require a Bond           

In many states, a mortgage company is required to carry a minimum bond amount in order to obtain their broker/lender license. Colorado, however, does not have that requirement. Individual loan officers within a company must carry a minimum bond amount of $25,000 but do not have to hold a Colorado branch license as it is not offered in the state. Also, the company can hold a blanket MLO bond whose amount depends on the number of loan officers sponsored. Therefore, as a company grows, bond costs which are usually the responsibility of loan officers, can be picked up by the company, which can be a cost-savings to your loan officers.

Separate Website for Additional Documents

While some states require individuals to complete their application with the documents required by the Nationwide Mortgage Licensing System (NMLS), Colorado has a separate website (DORA) that will require additional documentation outside of that list. Therefore, it is important to review and gather the documentation requirements before submitting your application.

Licensing is required for all persons who originate or offer a mortgage, or act or offer to act as a mortgage loan originator.

Mortgage Company Registration is Simple

Colorado has one of the most inexpensive and simplest applications for companies. This application does not require a company bond, but shifts that responsibility to the mortgage loan officers. Colorado also does not require a Qualified Individual, unlike some states. Therefore, the overall registration minimizes the requirements necessary to move forward with your license.

Does Not Require a Brick and Mortar Location

For a mortgage company to receive a license in other states, such as Texas, they are often required to have a brick and mortar location. On the other hand, Colorado does not have this requirement, reducing the potential overhead for a mortgage company.

Complete Qualifying Education Requirements

Individuals will need to fulfill the 20-hour Qualifying Education requirements of NMLS-approved licensing education by completing courses through services such as the MLG Fast Class, an industry-leading education provider. The following is necessary for licensure:

  • 3 hours of Federal law
  • 3 hours of Ethics
  • 2 hours of non-traditional mortgage lending
  • 2 hours of Colorado state-specific defined electives

(The 2 hours of state-specific content may also be completed as a standalone course.)

  • 8 hours of general electives

Once the courses have been completed, individuals must pass the SAFE exam.

Ready to Get Started?

The requirements for a mortgage license in Colorado make it an affordable option regarding fees, making it one of the simplest and cost-effective company applications in the country. If you are looking to register your company and obtain your mortgage license, we can help to walk you through the application process and answer any questions that you may have. Contact us today to speak with a representative.

The Mortgage Licensing Group, Inc. is a full-service mortgage licensing firm headquartered in Southern California that is recognized throughout the industry as an experienced and reliable service provider. Established in 2006, our company has been on the forefront of the ever-changing rules and regulations, helping alleviate the often daunting task of meeting the diverse state licensing requirements for our clientele.