What is a Mortgage Loan Officer?
A Mortgage Loan Officer or “mortgage loan originator” is an organization or individual that works with a borrower to carry out a mortgage transaction. A mortgage loan officer is the original mortgage lender that can be either a mortgage broker or a mortgage banker. Mortgage officers consist of a wide range of large firms, small firms, and individuals.
Wondering how to become a Loan Officer in Colorado? First you'll need to start with getting licensed. Here are the steps you need to take to become a Colorado Mortgage Loan Originator.
How to Become a Colorado Mortgage Loan Originator
Step #1: Meet Requirements
Colorado State Law requires you to meet the following requirements before you start your licensing process:
- Have no felonies in the past 7 years
- Never been convicted of a felony involving fraud, breach of trust, or dishonesty
- Never had a loan officer license revoked
- Demonstrate financial responsibility
Step #2: Submit a set of Fingerprints
Send a set of your fingerprints to the Colorado Bureau of Investigations for an FBI criminal history background check.
Instructions and methods of sending your fingerprints can be found here.
Step #3: Register with the Nationwide Mortgage Licensing System and Registry
All mortgage licenses are submitted and processed through NMLS, the Nationwide Mortgage Licensing System. Register and complete the correct registration application, authorize the registry to pull a credit report, and pay any registration fees.
Step #4: Submit a set of Fingerprints to the Nationwide Mortgage Licensing System and Registry
Fingerprints must not only be sent to the Colorado Bureau of Investigations, but also to the Nationwide Mortgage Licensing System.
Step #5: Complete the 20 Hours of Pre-licensing Education
Complete a pre-licensing education class approved by the Nationwide Mortgage Licensing System or a company contracted by them.
Education course information can be found here.
Step #6: Pass the S.A.F.E. Mortgage Loan Originator Exam
You must score a 75% or better on this exam that tests you over ethics, federal law and regulation, state law and regulation, fraud, consumer protection, nontraditional mortgages, and fair lending.
Schedule a test by calling (866) 994-6657
Step #7: Purchase a $25,000 Colorado MLO Bond.
Find out more about the bond here.
Step #8: Purchase $500,000 Errors and Omissions Insurance (E&O Insurance).
Find out more about the insurance policy here.
Step #9: Complete the Colorado Division of Real Estate specific license application and pay the Application fee
- Application Fee: $102
- Renewal Fee: $60
- Reinstatement Fee: $90
Step #10: Update your NMLS Online Record with the NEW State Issued License Number
Upon the approval of your Colorado Mortgage Loan Originator License, call the Colorado Division of Real Estate to update your NMLS record with the new state issued license number.
After completing this step, your NMLS record will be approved and you will be an official Colorado Mortgage Loan Originator.