The Colorado Gov. Bill Ritter has signed House Bill 1085 into law. HB 1085 concerns the regulation of mortgage loan originators, and, in connection therewith, modifying the "Mortgage Broker Licensing Act" to conform to the federal Secure and Fair Enforcement Act (SAFE Act) for the Mortgage Licensing Act of 2008," exempting certain financial institutions from the list of prohibited practices under the Act, and making an appropriation. This bill becomes effective Wednesday, Aug. 5, 2009. HB 1085 amends the Colorado Mortgage Loan Originator Licensing Act by:
● Adding definitions for 13 terms;
● Requiring annual license renewal;
● Prohibiting independent contractors from engaging in loan origination without a license;
● Adding a subsection regarding the minimum application requirements;
● Revising the time frame the director has to consider an application;
● Revising continuing education requirements;
● Revising the requirements regarding errors and omissions insurance;
● Adding new exemptions;
● Revising potential penalties for violations;
● Revising bond requirements;
● Adding a requirement for mortgage call reports; and
● Adding a requirement for licensees to display their unique identifier on mortgage documents.
To view Colorado HB 1085, click here.