These revocations are the result of the Colorado General Assembly House Bill 1085 that was passed in early 2009 and became effective August 5th, 2009. House Bill 1085 defines circumstances in which the Director of The Department of Regulatory Agencies, (DORA), may inactivate a mortgage loan originator license if they have failed to comply with the education and testing requirements.
As a result, the Director inactivated 4,560 licenses on August 31, 2009.
Individuals whose licenses are inactive are prohibited from practicing as a mortgage loan originator or in any other capacity which requires a license.
Individuals who continue to practice with an inactive license are subject to all forms of discipline prescribed in the Mortgage Loan Originator Licensing Act,
including permanent revocation and fines.
Direct managers of individuals with inactive licenses are also subject to disciplinary action if they allow such individuals to continue to practice.
In my opinion, this measure is a long overdue response to the blatant disregard for licensing education requirements that were put in place several years ago. At the time, Colorado was one of the only states that did not have any education requirements for its loan originators and the new rules were an effort to maintain a consistent level of professionalism in the industry.
In light of recent events in the mortgage industry these requirements seem more than reasonable. Now, almost 5 years after the changes there are still people out there choosing to ignore the law. The good news is they are not going to be able to hide the fact they are not licensed any longer.
When shopping for a home loan be sure you are working with a licensed professional.
If you would like to know how to find out if a mortgage originator is licensed or need more information about any area of the real estate industry feel free to email me: joan@roglianorealestategroup.com.
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