DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF REAL ESTATE

MORTGAGE LOAN ORIGINATORS

4CCR 725-3

NOTICE OF PROPOSED RULEMAKING HEARING
June 15, 2011

3-1-5 RESPONSIBILITY TO SUBMIT NMLS CALL REPORTS

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 Attorney General of the State of Colorado, and to all persons who have requested to be advised of the intention of the Board of Mortgage Loan Originators to promulgate rules.

Section 1.	Authority
Section 2.	Scope and Purpose
Section 3.	Applicability
Section 4.	3-1-5 Responsibility to Submit NMLS Call Reports
Section 5. 	Enforcement

Section 1.	Authority

The statutory basis for this rule, entitled 3-1-5 Responsibility to Submit NMLS Call Reports, is §§ 12-61-903 (10) and 12-61-910.3, C.R.S.

Section 2.	Scope and Purpose

Title V, section 1505(e), U.S.C. states that each mortgage licensee shall submit to the Nationwide Mortgage Licensing System and Registry reports of condition, which shall be in such form and shall contain such information as the Nationwide Mortgage Licensing System and Registry may require.

Section 3.	Applicability

This rule applies to all state-licensed mortgage companies and all individuals required to licensed pursuant to §§ 12-61-902 and 12-61-903, C.R.S. 

Section 4.	3-1-5 Responsibility to Submit NMLS Call Reports

1.	Beginning January 1, 2012, all mortgage companies and mortgage loan originators must submit the NMLS Mortgage Call Report on a calendar quarterly basis in such form and shall contain such information as the Nationwide Mortgage Licensing System & Registry may require.  
2.	A mortgage company must identify the applicable NMLS Mortgage Call Report. This includes, but is not limited to, the Standard Section and The Expanded Section of the NMLS Mortgage Call. The mortgage company must and complete the report on behalf of all employed mortgage loan originators.

3.	If a mortgage company does submit the NMLS Mortgage Call Report on behalf of their employed mortgage loan originators, an individualized NMLS Mortgage Call Report, as prescribed the Nationwide Mortgage Licensing System & Registry, is required to be submitted by the individual mortgage loan originator. 

4.	The quarterly report is due within 45 days of the end of the quarter and the financial condition report of the Standard Section is due annually 90 days from the company’s fiscal year end.

5.	Mortgage companies and mortgage loan originators must comply with any rules, policies and procedures relating to the submission of a Mortgage Call Report that are prescribed by the Nationwide Mortgage Licensing System & Registry.

6.	Failure to properly submit a NMLS Mortgage Call Report in a timely manner prescribed by the Nationwide Mortgage Licensing System & Registry shall prevent the mortgage company and/or the individual mortgage loan originator from renewing their NMLS registration and state license. 

Section 5. 	Enforcement

1.	Noncompliance with this rule, whether defined or reasonably implied in the rule, may result in the imposition of any of the sanctions allowable under Colorado law, including, but not limited to:

a.	Revocation;

b.	Refusal to renew a license; and

c.	Imposition of fines

A hearing on the above subject matter will be held on Wednesday, June 15, 2011, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250A, 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.