How to Become a Colorado Mortgage Loan Originator

All individuals in Colorado who originate a mortgage, offer to originate a mortgage, act as a mortgage loan originator, or offer to act as a mortgage loan originator must maintain an active mortgage loan originator (MLO) license. Colorado mortgage loan originator licenses authorize individuals to offer the following services.

  • First and second mortgage brokering
  • Foreclosure consulting/foreclosure rescue
  • Home equity lending or lines of credit
  • Reverse mortgage activities
  • High-cost home loans
  • Third-party mortgage loan processing
  • Third-party mortgage loan underwriting
  • Mortgage modifications

This guide explores the Colorado mortgage loan originator licensing process from application requirements to surety bond filing.

Colorado mortgage loan originator licensing requirements

The Colorado Department of Regulatory Agencies enforces the following licensing requirements for the state’s mortgage loan originators.

  1. Determine whether the license must be filed through the Nationwide Mortgage Licensing System (NMLS).
  2. Submit a separate set of fingerprints for a criminal history background check to:
  3. Complete 20 hours of NMLS-approved licensing education that fulfills the following parameters.
    • Three hours of federal law
    • Three hours of ethics
    • Two hours of nontraditional mortgage lending
    • Two hours of Colorado state-specific defined electives (may also be completed as a standalone course)
    • 10 hours of general electives
  4. Pass the National SAFE MLO examination.
  5. Purchase a Colorado mortgage loan originator bond.
  6. Purchase Errors and Omissions insurance.
    • An official quote showing a proposed policy number and proposed beginning and ending dates, with the applicant’s name, will suffice for the application process.
    • Once an official license has been issued, licensees must revisit their Colorado online RMS account and replace the policy quote documentation with official policy documentation. Failure to do so will result in an inactive license.

How to register with the Nationwide Mortgage Licensing System

Colorado mortgage loan originators can register with the Nationwide Mortgage Licensing System (NMLS) by completing the following steps.

  1. Confirm the NMLS registration requirement with the employer institution before proceeding. The employer institution will verify which of the following options apply.
    1. Your employer will initiate , submit, and pay for your registration.
      • Wait for NMLS to notify you to log in to your account, then complete and attest to the MU4R.
    2. Your employer will initiate your registration, but you will be responsible for submitting and paying for your registration.
    3. Your employer requires you to initiate, submit, and pay for your registration.
  2. Once the account is active, you will receive an email from NMLS with your username and temporary password.
  3. Log in to NMLS with those credentials, then update your password and email address.
    • Use an email address that you can access, regardless of employment.
    • You will need to maintain this account throughout your career in the mortgage industry.

How to submit mortgage loan originator applications in Colorado

If you meet all licensing requirements, you can complete and submit an application for licensure online.

  • The Colorado application form will become available within 24 hours of your NMLS application submission.
  • It is the responsibility of the applicant to provide documentation as required; failure to provide all required documentation may result in the denial of the application and the loss of all fees paid.

How much does it cost to become a mortgage loan originator in Colorado?

Various fees must be paid when completing documents, training, and testing required for licensure.

  • Application fee: $1.00
  • Fingerprint Live Scan: $36.25
  • Testing: $110
  • Credit report: $15
  • Surety Bond: starts at $125
  • Errors and Omissions Coverage: varies

How to get bonded as a Colorado mortgage loan originator

Applicants can purchase a Colorado mortgage loan originator bond online for as little as $125 by visiting SuretyBonds.com.

  • Bond for a mortgage loan originator license for an individual: Starts at $125
  • Bond for a mortgage loan originator license for a company with 1-19 employees: Starts at $500
  • Bond for a mortgage loan originator license for a company with 20+ employees: Starts at $2,000

Once an applicant has their official surety bond paperwork, they’ll file it with the Colorado Department of Regulatory Agencies.

Have any additional questions about getting your Colorado MLO bond?

The experts at SuretyBonds.com have years of experience issuing loan originator bonds nationwide, so they’re able to fulfill bond requirements quickly and easily. Visit SuretyBonds.com or call 1 (800) 308-4358 to speak with a friendly representative about the mortgage surety bonding process in Colorado.