A baby could have foreseen what was going to happen when Colorado implemented their mortgage licensing regulation. In last 12 months there have been a migration of mortgage hacks who could not obtain licensing because of fraud or other past issues to federally charted banks (Chase, Wells Fargo, TCF, Washington Mutal). Not any more.
It appears that State of Colorado is finally trying to look at for the consumers and ignore the lobbyist. In an attempt to help protect consumers (which is what they stated was their reason was from the beginning with mortgage licensing), Colorado will require ALL mortgage originators to be licensed by the state regardless of their employer.
Initially, only mortgage brokers that were not HUD approved were required to be registered/license, and then the state amended the law to require all mortgage brokers to be licensed, but employees of federally and state chartered banks were exempt. However, the Division of Real Estate has determined that EVERYONE who originates loans must be licensed in Colorado.
There is a big obstacle that stands in the way of making this a permanent reality. The Supreme Court has ruled in the past that federally charted banks are governed by the Office of Comptroller and Currency and are not subject to state regulations. However, the vote on the decision was very close (3-5) and, at issue then and now will be, whether federal oversight of federally chartered banks extend to their mortgage subsidiaries and granting them exemption from state regulations.
Let's hope they get this right for consumers, a fraud is a fraud, it doesn't matter if they work as a mortgage broker or Wells Fargo and they should have access to our personal information.
Prosperity Financial, LLC -Your Mortgage Manager
Lafayette, Colorado
http://www.colomortgages.com/ http://www.myprosperityfinancial.com/ http://www.3bed2bath.net/
It appears that State of Colorado is finally trying to look at for the consumers and ignore the lobbyist. In an attempt to help protect consumers (which is what they stated was their reason was from the beginning with mortgage licensing), Colorado will require ALL mortgage originators to be licensed by the state regardless of their employer.
Initially, only mortgage brokers that were not HUD approved were required to be registered/license, and then the state amended the law to require all mortgage brokers to be licensed, but employees of federally and state chartered banks were exempt. However, the Division of Real Estate has determined that EVERYONE who originates loans must be licensed in Colorado.
There is a big obstacle that stands in the way of making this a permanent reality. The Supreme Court has ruled in the past that federally charted banks are governed by the Office of Comptroller and Currency and are not subject to state regulations. However, the vote on the decision was very close (3-5) and, at issue then and now will be, whether federal oversight of federally chartered banks extend to their mortgage subsidiaries and granting them exemption from state regulations.
Let's hope they get this right for consumers, a fraud is a fraud, it doesn't matter if they work as a mortgage broker or Wells Fargo and they should have access to our personal information.
Prosperity Financial, LLC -Your Mortgage Manager
Lafayette, Colorado
http://www.colomortgages.com/ http://www.myprosperityfinancial.com/ http://www.3bed2bath.net/
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