Colorado Mortgage Loans
NMLS questions and answers
What
is the highest amount the board may fine an individual when finding misconduct
through an investigation for the first administrative proceeding?
The board, upon its own motion, may, and, upon the
complaint in writing of any person, shall, investigate the activities of any
licensee or any individual who assumes to act in such capacity within the
state. In addition to any other penalty that may be imposed pursuant to this
part 9, any individual violating any provision of this part 9 or any rules
promulgated pursuant to this article may be fined upon a finding of misconduct
by the board as follows: (I) In the first administrative proceeding, a fine not
in excess of one thousand dollars per act or occurrence; (II) In a second or
subsequent administrative proceeding, a fine not less than one thousand dollars
nor in excess of two thousand dollars per act or occurrence.
What
is the timeframe allowed for those wanting to file exceptions to the board's
initial decision?
Any party wishing to file exceptions shall adhere to
the following timelines: Code of Colorado Regulations 27 1. If no transcripts
are ordered, exceptions are due within thirty days from the date on which the
Board mails the initial decision to the parties. Both parties' exceptions are
due on the same date. 2. If transcripts are ordered by either party, the
following procedure shall apply. Upon receipt of all transcripts identified in
all designations of record and supplemental designations of record, the Board
shall mail notification to the parties stating that the transcripts have been
received by the Board. Exceptions are due within thirty days from the date on
which such notification is mailed. Both parties' exceptions are due on the same
date.
What does the board do when a violation may fall
within the jurisdiction of the criminal justice system?
(9) When the board or the division becomes aware of
facts or circumstances that fall within the jurisdiction of a criminal justice
or other law enforcement authority upon investigation of the activities of a
licensee, the board or division shall, in addition to the exercise of its
authority under this part 9, refer and transmit such information, which may
include originals or copies of documents and materials, to one or more criminal
justice or other law enforcement authorities for investigation and prosecution
as authorized by law.
What
dictates where the proceedings for disciplinary action is held?
Proceedings shall be held in the county where the
board has its office or in such other place as the board may designate. If the
licensee is employed by another licensed mortgage loan originator or by a real
estate broker, the board shall also notify the licensee's employer by mailing,
by first-class mail, a copy of the written notice required under section
24-4-104 (3), C.R.S., to the employer's last-known business address.
Which
of the following is NOT a possible action by the board when it is made known
that a licensee has not disclosed a potential conflict of interest to all
parties?
The board has the power to impose a fine, censure a
licensee, place the licensee on probation and set the terms of probation,
order restitution, order payment of actual damages, or suspend or revoke a
license when finding that the licensee or applicant has performed, is
performing, or is attempting to perform any of the following:...(e) Acting for
more than one party in a transaction without disclosing any actual or
potential conflict of interest or without disclosing to all parties any
fiduciary obligation or other legal obligation of the mortgage loan originator
to any party; (f) Representing or attempting to represent a mortgage loan
originator other than the licensee’s principal or employer without the express
knowledge and consent of that principal or employer
\
What
dictates where the proceedings for disciplinary action is held?
Proceedings shall be held in the county where the
board has its office or in such other place as the board may designate. If the
licensee is employed by another licensed mortgage loan originator or by a real
estate broker, the board shall also notify the licensee's employer by mailing,
by first-class mail, a copy of the written notice required under section
24-4-104 (3), C.R.S., to the employer's last-known business address.
What must a licensee, who is under another
mortgage loan originator’s employment, do when receiving deposit money from a
borrower?
The board has the power to impose a
fine, censure a licensee, place the licensee on probation and set the terms
of probation, order restitution, order payment of actual damages, or suspend
or revoke a license when finding that the licensee or applicant has
performed, is performing, or is attempting to perform any of the
following:...In the case of a licensee in the employ of another mortgage loan
originator, failing to place, as soon after receipt as is practicably
possible, in the custody of that licensed mortgage loan originator-employer
any deposit money or other money or fund entrusted to the employee by any
person dealing with the employee as the representative of that licensed
mortgage loan originator-employer; Failing to account for or to remit, within
a reasonable time, any moneys coming into his or her possession that belong
to others, whether acting as a mortgage loan originator, real estate broker,
salesperson, or otherwise, and failing to keep records relative to said
moneys, which records shall contain such information as may be prescribed by
the rules of the board relative thereto and shall be subject to audit by the
board;
To whom does the board make a request on
behalf of the people of the state regarding a violation that affects the
public?
The board may request that an action be
brought in the name of the people of the state of Colorado by the attorney
general or the district attorney of the district in which the violation is
alleged to have occurred to enjoin a person from engaging in or continuing
the violation or from doing any act that furthers the violation. In such an
action, an order or judgment may be entered awarding such preliminary or
final injunction as is deemed proper by the court. The notice, hearing, or
duration of an injunction or restraining order shall be made in accordance
with the Colorado rules of civil procedure.
Which
of the following is NOT a possible action by the board when it is made known
that a licensee has not disclosed a potential conflict of interest to all
parties?
The board has the power to impose a
fine, censure a licensee, place the licensee on probation and set the terms
of probation, order restitution, order payment of actual damages, or suspend
or revoke a license when finding that the licensee or applicant has
performed, is performing, or is attempting to perform any of the
following:...(e) Acting for more than one party in a transaction without
disclosing any actual or potential conflict of interest or without disclosing
to all parties any fiduciary obligation or other legal obligation of the
mortgage loan originator to any party; (f) Representing or attempting to
represent a mortgage loan originator other than the licensee’s principal or
employer without the express knowledge and consent of that principal or
employer
What
does the board do when a violation may fall within the jurisdiction of the
criminal justice system?
(9) When the board or the division
becomes aware of facts or circumstances that fall within the jurisdiction of
a criminal justice or other law enforcement authority upon investigation of
the activities of a licensee, the board or division shall, in addition to the
exercise of its authority under this part 9, r
If
an individual has an inactive license, what are they still required to stay
current 4on in order to renew their license?
continuing
education courses
errors
and omissions insurance
There
are no requirements.
surety
bond
Individuals with
inactive licenses shall renew their license annually in the manner set forth
in Rule 4.1. Individuals with inactive licenses are not required to maintain
compliant errors and omissions insurance or a compliant surety bond, but they
are required to stay current on all continuing education requirements in
order to renew their license. The fee for reinstatement is one and one half
times the amount of the current renewal fee.
Which
of the following answers would make this statement NOT TRUE? The board may
deny an application if the applicant has within the last five years been
denied to practice as _________ because of misrepresentation.
A
notary
a
real estate salesperson
an
investment advisor
an
attorney
Except as otherwise
set forth in this part 9, within the last five years, had a license,
registration, or certification issued by Colorado or another state revoked or
suspended for fraud, deceit, material misrepresentation, theft, or the breach
of a fiduciary duty, and such discipline denied the person authorization to
practice as: A mortgage broker or a mortgage loan originator; A real estate
broker, as defined by section 12-61-101 (2); (III) A real estate salesperson;
(IV) A real estate appraiser, as defined by section 12-61-702 (11); (V) An
insurance producer, as defined by section 10-2-103 (6), C.R.S.; (VI) An
attorney; (VII) A securities broker-dealer, as defined by section 11-51-201
(2), C.R.S.; (VIII) A securities sales representative, as defined by section
11-51-201 (14), C.R.S.; (IX) An investment advisor, as defined by section
11-51-201 (9.5), C.R.S.; or (X) An investment advisor representative, as
defined by section 11-51-201 (9.6), C.R.S.;
If
a licensee fails to maintain current contact information, what action, if
any, may the board take?
The
board may request an investigation of the mortgage loan originator's
application files.
The
board will not take action in this case.
The
board may require the mortgage loan originator to provide written
documentation of his / her current contact information and a formal apology
sent to the Board of Mortgage Loan Originators.
The
board may inactivate a state license or registration..
The board may
inactivate a state license or a registration with the nationwide mortgage
licensing system and registry when a licensee has failed to:…(c) Maintain
current contact information, surety bond information, or errors and omissions
insurance information as required by this part 9 or by any rule of the board
that directly or indirectly addresses such requirements;
Which
of the following statement is TRUE regarding the board setting fees for
courses and continuing education?
The
initial filing fee for review of materials shall not exceed two hundred
dollars, and the fee for continued review shall not exceed two hundred
dollars per year per course offered.
The
initial filing fee for review of materials shall not exceed nine hundred
dollars, and the fee for continued review shall not exceed one hundred fifty
dollars per year per course offered.
The
initial filing fee for review of materials shall not exceed five hundred
dollars, and the fee for continued review shall not exceed two hundred fifty
dollars per year per course offered.
The
initial filing fee for review of materials shall not exceed three hundred
dollars, and the fee for continued review shall not exceed one hundred fifty
dollars per year per course offered.
The board may set
fees for the initial and continuing review of courses for which credit hours
will be granted. The initial filing fee for review of materials shall not
exceed five hundred dollars, and the fee for continued review shall not exceed two hundred fifty
dollars per year per course offered.
What
is the minimum surety bond a 3mortgage loan originators must acquire?
15000
50000
25000
5000
Mortgage loan
originators are deemed compliant with the surety bond requirement if their
surety bond meets the requirements defined in one of the following options:
A. Mortgage loan originators, at a minimum, may acquire and maintain an
individual surety bond if: 1. The surety bond is in the amount of $25,000.00;
2. The surety bond is in conformance with all relevant Colorado statutory
requirements; 3. The surety bond is exclusive to covering acts contemplated
under current Colorado mortgage loan originator licensing laws; 4. The surety
bond is not applicable to any conduct or transactions outside the
jurisdiction of the Board; and 5. The surety bond is identical to the
individual surety bond form developed and approved by the Board.
