More than half of Colorado's mortgage brokers have had their licenses inactivated because they failed to comply with new education and testing requirements that took effect early last month.
This could be trouble for consumers who are working with brokers who are originating loans. If you’re broker is in this situation and you are in the midst of buying a house, you may not be able to close the sale.
Approximately 4,500 brokers have had their license suspended. About one-third of the licenses were held out of state. The educational requirement is a 40-hour class and test. Brokers will also need to pay a $500 administrative fee. Additionally, brokers are required to complete FBI background checks.
To see if your broker has a current license you can check with the State of Colorado or review this list: http://www.dora.state.co.us/real-estate/mortgage/documents/September2009.xls