How to get a Colorado Mortgage Loan Originator License

How do I become a mortgage loan originator in Colorado?

Step 1: Register with the Nationwide Multistate Licensing System (NMLS).

If you meet the definition of a mortgage loan originator and are employed by a federal agency-regulated institution, you must register with the NMLS. You'll need to confirm your registration requirement with your employing institution before proceeding. Then you'll set up your NMLS account and complete your mortgage loan originator registration process.

Step 2: Complete your NMLS National Background Check.

Every mortgage loan originator (whether state-licensed or federally registered) must complete an NMLS criminal background check. You'll need to schedule a fingerprint appointment and pay the required fees for the criminal background check. There's a $36.25 processing fee and $10.00 card packet fee, totaling $46.25.

Step 3: Complete qualifying education requirements.

You must complete 20 hours of NMLS-approved licensing education that fulfills the following parameters.

• 3 hours of federal law
• 3 hours of ethics
• 2 hours of nontraditional mortgage lending
• 2 hours of Colorado state-specific defined electives (may also be completed as a standalone course)
• 10 hours of general electives

Step 4: Pass the SAFE MLO Exam.

You can use the ​MLO Testing Handbook​ to find the following.

• test specifications
• enrollment procedures
• scheduling, rescheduling and cancelling test appointments
• special accommodations
• preparing for the test
• test day procedures
• retaking and waiting period for failed test
• test score expiration​

NMLS offers additional testing resources, information, and answers to common questions.

Step 5: Purchase errors and omissions insurance.

Mortgage loan originators must maintain errors and omissions insurance in the minimum limits required by the Colorado Division of Real Estate.

Step 6: Purchase your Colorado mortgage loan originator surety bond in the required amount.

The Colorado Department of Regulatory Agencies requires a mortgage loan originator surety bond so consumers can seek recourse for financial losses if they’re wronged by a professional loan originator during a mortgage transaction. Required bond amounts vary depending on your mortgage loan originator type.

• $25,000 surety bond for an individual mortgage loan originator license
• $100,000 surety bond for fewer than 20 mortgage loan originator licensees
• $200,000 surety bond for 20 or more mortgage loan originator licensees

You can apply for your Colorado mortgage loan originator bond online 24/7 with annual premiums starting at $125. Once you have your official surety bond paperwork, you must file it with the Colorado Department of Regulatory Agencies and then maintain your active bond for the duration of your license.

Step 7: Submit your Division of Real Estate Initial License Application.

You must be registered with NMLS before submitting your Colorado Division of Real Estate Online Services eLicense Application. Registration can take 24 to 48 hours to process.

To provide your new registration credentials to the NMLS, call the Division at 1(303)894-2683 to update the NMLS online record with your new Colorado-issued license number once your mortgage loan originator license has been approved. The NMLS record will be approved once this is complete.