SURETY SOLUTIONS BLOG

How To Become A Loan Officer In Colorado

By Jud Webre on Jan 1, 2016 2:07:00 PM in

Mortgage Bonds

colorado mortgage loan originator


What is a Mortgage Loan Officer?

 

A Mortgage Loan Officer is an organization or individual that works with a borrower to carry out a mortgage transaction. Mortgage Loan Officers are also called Mortgage Loan Originators, Loan Officers, or LO's.

 

All persons who originate a mortgage, offer to originate a mortgage, act as a mortgage loan originator, or offer to act as a mortgage loan originator in the state of Colorado need to get a Colorado Mortgage Loan Originator License.

 

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

 

View Colorado Mortgage Loan Originator License Requirements/Description.

 

 

Step #2: Submit a set of Fingerprints

 

You need to submit 2 sets of fingerprints.

 

View Instructions and Methods of Sending your Fingerprints.

 

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.

View the CO Mortgage Loan Originator License New Application Checklist.

 

 

Step #4: 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.

View Education Course Information.

  

Step #5: 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 #6: Purchase a $25,000 Colorado MLO Bond.

 

Find out more about the bond here.

With Surety Solutions, the lowest annual premium available is $100. The highest annual premium you would have to pay would be $188.

 

Get My Free CO MLO Bond Quote

 

 

 

Step #7: Purchase $500,000 Errors and Omissions Insurance (E&O Insurance).

 

Find out more about the insurance policy here.

Surety Solutions offers CO E&O for just $216.

 

Free CO E&O Quotes

 

 

 

Step #8: 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 #9: 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.

 

Who to Contact: The Colorado Division of Real estate licensing staff by phone at 303-894-2166 or send your questions via e-mail to real-estate@dora.state.co.us for additional assistance or visit the Division website.

 

Related Links:

What is a Colorado Mortgage Loan Originator Bond?

How to get Colorado Errors and Omissions Insurance