Mortgage Broker Licensing
Happy Monday morning!
As of January 1, 2008, most mortgage brokers in Colorado are required to be licensed with the Division of Real Estate. This is excellent news and something that honest, hard-working brokers (both real estate and mortgage) have been wanting for years.
Much of the foreclosure mess can be directly attributed to dishonest or blantantly fraudulent brokers trying to earn a fast buck with little or no concern for the effect the loan will have on the homeowner. 73 applications have already been declined (out of ~10,000 brokers in Colorado).
Unfortunately, the law misses a significant portion of the mortgage broker population. Brokers working at banks (e.g. Wells Fargo) do not have to be licensed. I guess the bank lobbyists were too strong for the Division of Real Estate. By no means is the law perfect (what law is?) but I’m very happy to see such a concerted effort to clean up the industry.
Have a great week,
Drew