Colorado to streamline examination standards for Mortgage Loan Originators
The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires MLOs to pass the SAFE MLO test before they can obtain a state issued license. Applicants have been required to pass a two-part examination: (1) a national MLO test and (2) a state-specific test. Beginning on March 1, 2016, applicants seeking a Colorado MLO license will now be required to successfully pass the National SAFE MLO examination with Uniform State Content. The test combines both the national and state testing requirements of the SAFE Act. Upon successful completion of the National SAFE MLO examination, an applicant for a Colorado MLO license will not need to take any additional licensing tests.
As part of the new examination requirements, applicants for licensure will need to complete two hours of Colorado specific pre-licensing education. The total number of pre-licensing hours in Colorado has not increased, but the course content requirements have changed to replace previously required general elective with a state-specific elective.
“The adoption of the National SAFE MLO examination with Uniform State Content is another great example of the Division of Real Estate working collaboratively with industry stakeholders on reducing the regulatory burden of licensed individuals doing business in Colorado,” stated Marcia Waters, Director of the Division of Real Estate. “Furthermore, the new education requirements will ensure consumers are working with licensed MLOs familiar with the state-specific requirements for originating loans in this state and fulfilling our mission of protecting the Colorado consumer.”
View the notice sent out by the Nationwide Mortgage Licensing System and Registry regarding the new education requirements for Colorado beginning March 1, 2016. The Division of Real Estate currently licenses 9,856 MLOs operating from 42 states. Consumers can verify that their mortgage loan originator is properly licensed at dora.colorado.gov/dre.