How to Become a Colorado Mortgage Loan Originator

SuretyBonds.com has developed this comprehensive licensing guide to explain how to get licensed as a mortgage loan originator in Colorado. Follow this Colorado Mortgage Loan Originator License Guide to understand Colorado Department of Regulatory Agencies registration requirements. 

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.

What are 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.

    •  Pay to open an enroll​ment window
    •  Accept the Candidate Agreement
    •  Schedul​e an a​ppointment
    • Prepare and take the test
  5. Purchase a Colorado mortgage loan originator bond.

    • The cost of a mortgage loan originator bond in Colorado depends on the bond amount as well as underwriting considerations.
    • The best way to determine your exact surety bond cost is to contact an expert by calling 1 (800) 308-4358 or by requesting your free surety bond quote online.
  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 do I 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 do I submit a mortgage loan originator application 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.
  • The applicant must 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 much does a Colorado mortgage loan originator surety bond cost?

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

  • $25,000 surety bond for an individual mortgage loan originator license for an individual: Starts at $125 annually
  • $100,000 surety bond for an individual mortgage loan originator license for fewer than 20 licensees: Starts at $850 annually
  • $200,000 surety bond for an individual mortgage loan originator license for 20 or more licensees: Starts at $2,000 annually

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

How do I get a mortgage loan originator surety bond in Colorado?

You can apply for a Colorado Mortgage Loan Originator Bond online 24/7 or call 1(800)308-4358 to speak with a surety expert about your bonding needs. 

Founded in 2009, SuretyBonds.com has streamlined the direct-to-consumer bonding experience by providing efficient, innovative, and informed surety bond solutions nationwide. SuretyBonds.com encourages its clients, employees, and industry colleagues to Grow Through Education every day.

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