DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF REAL ESTATE

MORTGAGE BROKERS

EMERGENCY RULE

4CCR 725-3

GROUNDS FOR DENIAL OF LICENSE APPLICATIONS OR FOR SANCTIONS REGARDING LICENSE APPLICANTS, LICENSE RENEWALS, LICENSE REINSTATEMENTS AND LICENSEES

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4.	Grounds for Denial of License Applications or for Sanctions Regarding License Applicants, License Renewals, License Reinstatements and Licensees.
Section 5. 	Effective Date

Section 1.	Authority

The Director of the Division of Real Estate adopts the following emergency rule entitled, Grounds for Denial of License Applications or for Sanctions Regarding License Applicants, License Renewals, License Reinstatements and Licensees, according to her authority as found in §§ 12-61-903(10), 12-61-910.3, and 24-4-103(6), C.R.S.

Section 2.	Scope and Purpose

The Director finds that immediate adoption of this rule is imperatively necessary for the preservation of public health, safety or welfare and that compliance with the rulemaking requirements of § 24-4-103, C.R.S., applicable to non-emergency rules, would be contrary to the public interest.

The Director has learned of uncertainty regarding two sections of the Mortgage Broker Licensing Act and to whom these sections apply.  Specifically, there is confusion regarding whether §§ 12-61-905(1) and 12-61-905.5(1), C.R.S., governing “Powers and Duties of the Director” and “Disciplinary Actions-grounds-procedures-rules” respectively, apply to license applicants, individuals seeking license renewals or reinstatements, and licensees.

The purpose of this rule is to clearly notify individuals seeking mortgage broker licensure, current licensees and the mortgage broker industry that a violation of or failure to comply with any provisions contained in §§ 12-61-905 or 12-61-905.5, C.R.S., is grounds for license application denial and for sanctions. 

Without the immediate adoption of this emergency rule, the public’s interest is not served.  Wherefore, the Director, pursuant to § 24-4-103(6), C.R.S. has an obvious and stated need to adopt this rule.

Section 3.	Applicability

This rule applies to mortgage brokers as that term is defined in § 12-61-902(5), C.R.S. and includes those persons who broker a mortgage, offer to broker a mortgage, act as a mortgage broker, or offer to act as a mortgage broker.  This rule applies to all individuals required to be licensed pursuant to §§ 12-61-902(2) and 12-61-903(1)(a) , C.R.S. This rule applies to all mortgage broker license applicants who apply for such license pursuant to the Mortgage Broker Licensing Act, § 12-61-903, C.R.S.

Section 4. 	Grounds for Denial of License Applications or for Sanctions Regarding License Applicants, License Renewals, License Reinstatements and Licensees

(1)	The Director shall exercise his or her authority to deny a license applied for, 
refuse to renew, refuse to reinstate, or revoke a license for a violation of § 12-61-911(1)(m), C.R.S., as incorporated by § 12-61-905(1)(f), C.R.S.

(2)	The Director may exercise his or her authority to restrict or deny a license applied for pursuant to § 12-61-905.5(1), C.R.S. and § 24-4-104(11), C.R.S.

Section 5.	Effective Date

This emergency rule shall be effective July 28, 2008.