DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
MORTGAGE LOAN ORIGINATORS AND MORTGAGE COMPANIES
4CCR 725-3

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
November 20, 2013

1-1-2 MORTGAGE LOAN ORIGINATOR TEMPORARY LICENSE

Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S., as amended, notice of proposed rulemaking is hereby given, including notice to the Colorado Attorney General, and to all persons who have requested to be advised of the intention of Board of Mortgage Loan Originators to promulgate rules.

Section 1. 	Authority
Section 2.	Scope and Purpose
Section 3. 	Applicability
Section 4. 	1-1-2 Mortgage Loan Originator Temporary License

Section 1. 	Authority

The statutory basis for this rule entitled 1-1-2 Mortgage Loan Originator Temporary License, is section 12-61-910.3, C.R.S.

This notice proposes to add rule 1-1-2.  The rule establishes a temporary license for mortgage loan originators.

Section 2.	Scope and Purpose

Section 12-61-905(10), C.R.S., requires the Board of Mortgage Loan Originators to promulgate rules that allow licensed mortgage loan originators to hire unlicensed mortgage loan originators under temporary licenses.  The purpose of this regulation is to define the parameters under which an individual may receive a temporary license.

Section 3.	Applicability

This rule applies to all individuals required to be licensed pursuant to sections 12-61-902 and 12-61-903, C.R.S. 

Section 4.	1-1-2 Mortgage Loan Originator Temporary License

1.	  	Mortgage loan originators who demonstrate to the Board a good-faith 
effort to comply with the requirements pursuant to Colorado Revised Statutes 12-61-901, et seq., . may be issued a temporary license upon completion of the requirements set forth below:

a.	The individual has completed all requirements required by the Nationwide Mortgage Licensing System and Registry, including payment of requisite fees,  and has been approved by the Board of Mortgage Loan Originators on the Nationwide Mortgage Licensing System and Registry;

b.	Prior to submitting an application, a set of fingerprints for a criminal history record check must be submitted to the Colorado Bureau of Investigation (CBI);

c.	Acquisition of a surety bond as required by section 12-61-907, C.R.S., and in accordance with any rule of the Board that directly or indirectly addresses surety bond requirements;

d.	Acquisition of the errors and omissions insurance required by section 12-61-903.5, C.R.S., and in accordance with any rule of the Board that directly or indirectly addresses errors and omissions insurance requirements;

e.	Completion of the mortgage loan originator application; and

f.	Payment of the application fee established by the Board.

2.	Only individuals who are licensed as state-licensed loan originators may hire and sponsor unlicensed mortgage loan originators under the temporary license provision.

a.	Licensed mortgage loan originators who employ and sponsor such a temporarily licensed mortgage loan originator shall be held responsible under all applicable provisions of law, including without limitation the Mortgage Loan Originator Licensing and Mortgage Company Registration Act and section 38-40-105, C.R.S., for the actions of the temporarily licensed mortgage loan originator to whom a temporary license has been assigned, and are personally subject to all applicable penalties under the law.

i.	Licensed mortgage loan originators shall notify the Division of Real Estate, in a manner acceptable to the Board, of exact dates of hire and termination of employment for temporarily licensed mortgage loan originators.  Sponsoring mortgage loan originators shall complete the Mortgage Loan Originator Temporary License Update Form, found on the Division of Real Estate website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm, and forward to the Division of Real Estate, in a manner acceptable to the Board, all other information required for the possible receipt of a temporary license.

ii.	Licensed mortgage loan originators shall be held responsible for the activity of temporarily licensed mortgage loan originators through and including the date of termination and required notification of such termination to the Division of Real Estate. 

3.	Temporary licenses shall expire 120 days after completion of the mortgage loan originator license application or when the temporary license is terminated by a licensed mortgage loan originator with whom the temporary licensee is operating under.

4.	Individuals seeking temporary licenses shall be granted one temporary license.  Additional or extended temporary licenses are prohibited.

5.	Individuals seeking a temporary license shall complete the paper version of the  
mortgage loan originator license application posted on the Division of Real Estate’s website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm. 

6.	Temporary licensees shall request on the application that the Board inactivate their temporary license upon determination by the Board that the requirements of the law have not been met.  Applicants shall be notified via electronic mail, fax, or U.S. mail at the contact information provided to the Division of Real Estate in the applicant’s mortgage loan originator license application.

7.	Any temporary license issued by the Board shall have the same force and effect of the license required by the Mortgage Loan Originator Licensing and Mortgage Company Registration Act for the period of time it is in effect.

8.	Once the applicant fully complies with the terms of the law as determined by 
the Board, the Board shall license the applicant in accordance with section 12-61-903, C.R.S.  

9.	Due to the changes defined in this rule, the names of temporary licensees will be posted to the Division of Real Estate website at http://www.dora.state.co.us/real-estate/mortgagebrokerregistration.htm. [REPEALED]

A hearing on the above subject matter will be held on Wednesday, November 20, 2013, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250-C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate.  Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.