Effective June 1st, 2006 – Temporary Registration
1. Each and every mortgage broker including those who made a good-faith effort to comply with or who were exempt from the previous registration law, HB 06-1161, §§ 12-61-901 to 911, C.R.S. is hereby granted immediate, temporary registration through and including September 1, 2007, or until such date as the broker demonstrates a good-faith effort to comply with the requirements of HB07-1322, § 12-61-901, et seq., C.R.S., or whichever date is earlier, with the following exceptions:
a. Mortgage brokers denied registration shall not receive temporary registration under this rule.
b. Mortgage brokers who have not demonstrated a good-faith effort to become registered under the previous registration law, HB 06-1161, §§ 12-61-901 to 911, C.R.S. shall not receive temporary registration under this rule.
2. 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.
3. 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 US mail to the contact information provided to the Division of Real Estate in the applicant’s application.
4. 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.
5. 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.
6. 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.
House Bill 07-1322 – Effective upon signature by Governor Bill Ritter
1. Repeals the FHA exemption
2. Requires mortgage brokers to act for the benefit of the borrower by taking actions that include a reasonable inquiry concerning the borrower’s current and prospective financial status.
3. Defines prohibited conduct regarding fraud, misrepresentation, and conflict of interest.
4. Defines disclosures specific to fees, costs, and lock-in agreement terms.