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. If you'd like an even more detailed set of steps, Dave Sims wrote about his experience getting his MLO license.
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
You need to submit 2 sets of fingerprints.
- Send one set of your fingerprints to the Colorado Bureau of Investigations for an FBI criminal history background check.
- Send the other set of fingerprints to the Nationwide Mortgage Licensing System.
Step #3: Register with the Nationwide Mortgage Licensing System and Registry
All mortgage licenses are submitted and processed through the 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: 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.
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.
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 as low as $227.
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 firstname.lastname@example.org for additional assistance or visit the Division website.