DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
MORTGAGE BROKERS
4 CCR 725-3

GOOD-FAITH TEMPORARY REGISTRATION FOR MORTGAGE BROKERS

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 Director of the Colorado Division of Real Estate to promulgate rules.  

STATEMENT OF BASIS AND PURPOSE
The statutory basis for this rule, entitled Good-Faith Temporary Registration for Mortgage Brokers, is § 12-61-901, et seq., C.R.S.

The notice proposes to add rule 1-1-1.  The rule establishes a good-faith temporary registration for mortgage brokers.

Proposed New Regulation 1-1-1

CONCERNING GOOD-FAITH TEMPORARY REGISTRATION FOR MORTGAGE BROKERS.

Section 1.	Authority
Section 2. 	Scope and Purpose
Section 3. 	Applicability
Section 4. 	Definitions
Section 5.	Rules Regarding Registration

Section 1	Authority

This regulation is promulgated by the Director of the Division of Real Estate under the authority of § 12-61-910.3, C.R.S., (2007).

Section 2	Scope and Purpose

The purpose of this regulation is to specify the requirements of a good-faith temporary registration.

Section 3	Applicability

This rule governs individuals who broker a mortgage or act as a mortgage broker and is not intended for individuals who remain exempt from registration pursuant to § 12-61-904, C.R.S. (2007).

Section 4	Definitions

A. 	“Good-Faith Effort” is defined as complying with the provisions as set forth below in this rule.

Section 5.	Rules Regarding Registration

1.	Mortgage brokers demonstrating to the Director a good-faith effort to comply with newly enacted HB07-1322, § 12-61- 901, et seq., C.R.S. shall be issued a Good-Faith Temporary Registration upon compliance with the requirements set forth below.  

A.	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);
B.	Acquisition of a $25,000.00 surety bond as required by § 12-61-907, C.R.S;
C. 	Completion of the mortgage broker application; and 
D.	Payment of the $200.00 application fee.

2.	Good-Faith Temporary registrations will expire upon determination by the Director that the requirements of the law have not been met.  Applicants shall be notified via e-mail, fax or U.S. mail to the contact information provided to the Division of Real Estate in the applicant’s application.

3.	Good-Faith Temporary registrations issued by the Director will remain in effect until December 31, 2007, unless the Director issues the applicant a full registration upon the applicant’s compliance with all terms of the applicable registration law, or unless the Director determines the registration to be expired for failure to comply with the requirements to obtain a Good Faith Temporary Registration, as set forth in this regulation.

4.	Any temporary registration issued by the Director shall have the same force and effect of the registration required by § 12-61-901, et seq., for the period of time it is in effect.

5.	Once the applicant fully complies with the terms of the new law as determined by the Director, the Director shall register the applicant in accordance with § 12-61-903, C.R.S.  The date this occurs will be the applicant’s anniversary date for purposes of compliance with the licensing and education requirements of § 12-61-903, C.R.S.