DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF REAL ESTATE

MORTGAGE LOAN ORIGINATORS

EMERGENCY RULE

4CCR 725 -3

MORTGAGE LOAN ORIGINATOR IMMEDIATE AND AUTOMATIC TEMPORARY LICENSE

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4. 	Mortgage Loan Originator Immediate and Automatic Temporary License
Section 5. 	Effective Date

Section 1. 	Authority

The Director of the Division of Real Estate adopts the following emergency rule entitled, Mortgage Loan Originator Immediate and Automatic Temporary License, according to her authority as found in §§ 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 that individuals required to be newly licensed pursuant to the passage of House Bill 09-1085 may need additional time in order to comply.  In an effort to avoid the contraction of mortgage related credit, it is necessary to adopt this rule.  The purpose of this rule is to provide an immediate and automatic temporary license to individuals who have not been required to be licensed in the past, but are now required to do so pursuant to House Bill 09-1085.  Affected individuals include those working for affiliates of depository institutions and individuals who engage in chattel financing relating to residential real estate. 

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 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. 	Mortgage Loan Originator Immediate and Automatic Temporary License

1.	The following mortgage loan originators shall be granted an immediate and automatic temporary license beginning on the effective date of this rule:

a.	Mortgage loan originators or individuals required to be licensed pursuant to the Colorado Mortgage Loan Originator Licensing Act, Director rule or as prescribed by the Director by position statement that are employees or exclusive agents for affiliates of a bank, savings bank, savings and loan association, building and loan association, industrial bank, industrial loan company, credit union, or bank or savings association holding company organized under the laws of any state, the District of Columbia, a territory or protectorate of the United States, or the United States; or

b.	Mortgage loan originators or individuals required to be licensed pursuant to the Colorado Mortgage Loan Originator Licensing Act, Director rule or as prescribed by the Director by position statement that are engaged in taking a residential loan application or offering or negotiating terms for chattel loans related to residential real estate.

2.	Automatic and immediate temporary licenses granted pursuant to this rule shall expire ninety (90) days from the effective date of this rule.  

3.	The issuance of this temporary license is automatic in nature and is applicable to all individuals who meet the requirements defined in subsection 1 of section 4 of this rule without any posting or actual issuance of a license by the Director of the Division of Real Estate.

4.	Temporary licenses pursuant to this rule shall have the same force and effect of the license required by § 12-61-901, et seq., C.R.S. for the period of time it is in effect.

Section 5.	Effective Date

This emergency rule shall be effective August 5, 2009.