On July 15, 2020 the Colorado Board of Mortgage Loan Originators (“Board”) held a rule-making hearing to update and adopt rules for mortgage loan originators and mortgage companies based upon the mandatory rule review required by Senate Bill 14-063 (Mandatory Review of State Agency Rules). The Division of Real Estate (“Division”) initiated the rule review on behalf of the Board to assess the continuing need for, appropriateness and cost effectiveness of the administrative rules. It also assessed whether the rules should be continued in their current form, amended or repealed. The rule review process included stakeholder and public participation and input, including the use of a mortgage industry task force to consider that input with regard to the existing regulations. The task force included the following individuals and groups:
- Colorado Mortgage Lenders Association (CMLA) – Represented by Cary Whitaker;
- Colorado Association of Mortgage Professionals (CoAMP) – Represented by Jayne Bail;
- Rocky Mountain Home Association – Represented by Janie Taylor;
- Impact Mortgage Management Advocacy and Advisory Group (IMMAAG) – Represented by Bill Kidwell;
- Bruce Jordan - Mortgage Loan Originator;
- Calvin Evans - Mortgage Compliance Officer;
- Frank Giuliano - Mortgage Loan Originator;
- Kim Woodcock - Mortgage Compliance Officer;
- Cheryl Branuschwiger - Mortgage Loan Originator; and
- Division staff members from the licensing, investigations, and education sections.
The adoption of the rules is the culmination of these collaborative efforts, resulting in rules that have been updated to consider mortgage loan originators holding licenses in other jurisdictions, reconcile with NMLS processes and procedures, and ensure consistent disclosure and record retention timelines. The proposed rules have been written in plain language and are easier to use and understand. Additionally, the proposed rules provide a clearer roadmap of the licensing and enforcement requirements of the Mortgage Loan Originator Licensing and Mortgage Company Registration Act. These rules are effective beginning January 1, 2021.
Although the rules are not effective until the beginning of the year, the Board and the Division wanted to provide adequate notification to ensure everyone has sufficient time to acquaint themselves with the newly adopted rules.