Loan Originator Licensing

Effective January 1, 2008, most mortgage loan originators who do business in Colorado must be licensed as a "mortgage broker". Employees of mortgage lending firms are not exempt, except for those who work for a federally-chartered or insured financial institution or a subsidiary thereof. Employees of state chartered financial institutions or subsidies thereof may also be exempt from licensing, but may be required to use certain state disclosure forms. CMLA would encourage all other loan originators to assume that they are a "mortgage broker" unless and until a qualified attorney or the Colorado Division of Real Estate determines otherwise.

CMLA offers this information as a service to its members and friends. This information should not be considered legal advice, nor should and person or entity rely on this information as counsel regarding rights or responsibilities under the law. Any person or entity who may be affected by Colorado "mortgage broker" licensing requirements should consult with a qualified attorney and/or the Colorado Division of Real Estate, which serves as the state regulatory agency for "mortgage broker" licensing.

Colorado definition of a "Mortgage Broker": mortgage broker means an individual who negotiates, originates, or offers or attempts to negotiate or originate for a borrower, and for a commission or other thing of value, a loan to be consummated and funded by a mortgage lender. Please note that the state of Colorado does not provide exemption based on HUD, FHA, VA, FNMA, FHLMC, or GNMA approval.