Denver Real Estate by Denver Neighborhoods

On Monday, August 31st, the Colorado Division of Real Estate inactivated 4,560 mortgage broker licenses leaving 4,252 licensed mortgage brokers in the state of Colorado. What happened? The Denver Business Journal Reports the following:

The action stems from a state mortgage broker licensing law that went into effect on Jan. 1, 2008. Although all of the state’s brokers were automatically licensed at the time, they had one year to fulfill the same requirements as new applicants, which include completing 40 hours of licensing education and passing a written test.

A year and a half later, about half of them hadn’t fulfilled all of the requirements, despite a time extension.

The Division of Real Estate stepped up its warnings in late July, emailing brokers twice a week to remind them that they faced inactivation on Aug. 31.

It’s unclear how many of those brokers remain active. Some may have left the business; others may be working for banks or other federally regulated institutions, where they aren’t required to have a state license.

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So if you are thinking of buying a home, be sure that the lender you decide to work with is an actively licensed broker, even if your Realtor provided you with a reference. CLICK HERE to check an individuals license status. IF you are currently working with a lender who’s license has become inactive, I would suggest you pull your file and find another broker who is active. Seems if a lender hasn’t gone to the effort of maintaining his/her licensing status, well then… maybe he/she just isn’t that excited to be helping you with one of your biggest purchases and doesn’t have the qualifications to be doing so!

Have a wonderful day!