Mortgage Broker State Requirements

All mortgage brokers conducting business in Colorado must now complete 40 hours of pre-license education and pass the 100-question state licensing exam in order to obtain a mortgage broker license. If you are already conducting business as a Colorado mortgage broker, you must complete the education and testing requirements no later than January 1, 2009. All persons that broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker are required to be licensed with the Colorado Division of Real Estate. Mortgage brokers who fail to complete the pre-licensing and exam requirements are subject to disciplinary action regarding their license.

Here are the requirements to obtain a mortgage broker license:

• EDUCATION. 40 hours of state-mandated education from an approved provider.
• EXAM. Passing score (approximately 70%) on the state licensing exam administered by PSI ( www.psiexams.com) and consisting of 2 portions:
• Law Portion: 60 questions on federal and state laws, rules, and regulations affecting mortgage brokers, and
• Practice Portion: 40 questions on the basics of mortgage finance and mortgage practice
• SURETY BOND.
• INSURANCE. Errors and Omissions insurance (E&O).
• BACKGROUND CHECK. Fingerprinting to facilitate a criminal background investigation. It can take up to 3 months to complete the investigation so DON”T DELAY. You cannot get a license until your background check is complete.

If I have recently submitted fingerprints for a real estate broker license, do I need to resubmit?

The Division of Real Estate will accept background checks submitted for real estate broker licenses that have been conducted in the 12 months prior to the application for mortgage broker registration.

Individuals exempt from Mortgage Broker registration requirements

A complete description of exemptions are listed under §12-61-904, C.R.S.

Fees assessed by the Colorado Real Estate Commission

The Division of Real Estate fee to apply for a mortgage broker occupational license is $200. Additional costs you are responsible for are the criminal background check, E&O insurance, education, testing fees, and surety bond.

Mortgage Broker license expiration

A licensed mortgage broker shall apply for renewal every 3 years.

Contact the Colorado Real Estate Commission for more information

The Division of Real Estate is committed to providing quality service to all of the entities they regulate and supervise. Normal office hours are 8 a.m. to 5 p.m. (Mountain Time), Monday through Friday. Email them at mb@dora.state.co.us, call their office at 303-894-5953 or fax them at 303-894-7885 if you have additional questions or comments.