DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF REAL ESTATE

MORTGAGE LOAN ORIGINATORS

4CCR 725-3

1-5-1 MORTGAGE LOAN ORIGINATOR LICENSE INACTIVATION AND REACTIVATION

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4.	1-5-1 Mortgage Loan Originator License Inactivation and Reactivation

Section 1.	Authority

The Director of the Division of Real Estate adopts the following permanent rule entitled, 1-5-1 Mortgage Loan Originator License Inactivation and Reactivation, according to her authority as found in §12-61-910.3, C.R.S.

The notice proposes to add rule 1-5-1.  The rule requires administrative fees to be collected when a mortgage loan originator seeks to reactivate their license after it has been inactivated for specific reasons.

Section 2.	Scope and Purpose

Section 12-61-903.3 allows the Director of the Division of Real Estate to inactivate licenses for specific reasons.  The inactivation process creates an administrative burden on the Division of Real Estate.  Accordingly, the purpose of this rule is to establish an administrative fee collected upon reactivation for specific circumstances.

Section 3.	Applicability

This rule applies to mortgage loan originators as that term is defined in § 12-61-902(6), C.R.S. and includes those 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.  This rule applies to all individuals required to be licensed pursuant to §§ 12-61-902 and 12-61-903, C.R.S. 

Section 4. 	1-5-1 Mortgage Loan Originator License Inactivation and Reactivation

1.	If a mortgage loan originator license is inactivated by the Director or an authorized representative of the Director for one or any combination of the following reasons, the mortgage loan originator shall pay an administrative fee determined by the Director, due to the related increase in administrative burden, in order to reactivate their license:  

a.	The mortgage loan originator has failed or is failing to comply with the surety bond requirements of section 12-61-903(6), C.R.S. section 12-61-907, C.R.S. or any rule of the Director that directly or indirectly addresses surety bond requirements;

b.	The mortgage loan originator has failed or is failing to comply with the errors and omissions insurance requirement in section 12-61-903.5, C.R.S. or any rule of the Director that directly or indirectly addresses errors and omissions insurance requirements;

c.	The mortgage loan originator has failed or is failing to maintain current contact information, surety bond information, or errors and omissions insurance information as required by this part 9 or by any rule of the Director that directly or indirectly addresses such requirements;

d.	The mortgage loan originator has failed or is failing to respond to an investigation or examination;

e.	The mortgage loan originator has failed or is failing to comply with any of the education or testing requirements set forth in this part 9 or in any rule of the Director that directly or indirectly addresses education or testing requirements; or 

f.	The mortgage loan originator has failed or is failing to register with and provide all required information to the Nationwide Mortgage Licensing System and Registry.

2.	Individuals who have an inactive license are prohibited from practicing as a mortgage loan originator.  Additionally, individuals who have an inactive license are prohibited from engaging in any mortgage related activities which requires licensure pursuant to the Colorado Mortgage Loan Originator Licensing Act, Director rule or as prescribed by Director position statement.

3.	In order for an inactive mortgage loan originator license to be reactivated, the individual seeking reactivation shall provide the Division of Real Estate with proof of full compliance with current mortgage loan originator license law.

4.	All administrative fees shall be collected in the form of a money order or a cashier’s check.

5.	The Director has created the Mortgage Loan Originator License Reactivation Form.  This form may be found on the Division of Real Estate’s website at http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm.