The Colorado Board of Mortgage Loan Originators has revised its regulations for mortgage loan originators and mortgage companies, with the revised rules set to take effect on January 1, 2021.
The Board’s review and update of its existing rules was prompted by a mandatory Colorado rule that state agencies review the continuing need for and the cost effectiveness of their rules and modify or repeal them as necessary. The review process included a mortgage industry task force, which had representatives from the Colorado Mortgage Lenders Association and the Colorado Association of Mortgage Professionals.
The updated rules incorporate both substantive and stylistic changes. The rules have been rewritten in plain English to be more easily understandable. The changes reconcile Colorado processes with NMLS processes, and provide a “clearer roadmap” of the licensing and enforcement provisions of the Mortgage Loan Originator Licensing and Mortgage Company Registration Act.
The press announcement of the changes includes a redline showing all of the changes from the previous rules, as well as a clean version of the rules which will be effective January 1, 2021.