DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
POSITION STATEMENT
MB 1.6 – INDEPENDENT CONTRACTOR LOAN PROCESSORS AND UNDERWRITERS
Section 1. Scope and Purpose
Section 2. Applicability
Section 3. Position Statement
Section 4. Issuance Date
Section 1. Scope and Purpose
In July of 2008, the Housing and Economic Recovery Act of 2008 was signed into law. Title V of the Economic
Recovery Act of 2008 is the S.A.F.E. Mortgage Licensing Act. The S.A.F.E. Mortgage Licensing Act defines
minimum national licensing standards for mortgage loan originators and requires states to adopt such provisions.
The S.A.F.E. Mortgage Licensing Act requires all independent contractor processors or underwriters to be licensed
as state-licensed loan originators. Accordingly, the Colorado General Assembly passed House Bill 09-1085 in May
of 2009. This bill was signed into law by Governor Bill Ritter Jr. on May 21, 2009. House Bill 09-1085 becomes
effective August 5, 2009. The Director of the Division of Real Estate has received many inquiries from loan
processors and underwriters regarding when they need to be licensed as state-licensed loan originators. House Bill
1085 does define a requirement for licensure, but does not specify a timeline. The purpose of this position statement
is to clearly provide a timeline for independent contractor processors and underwriters regarding when they are
required to be licensed as state-licensed loan originators.
Section 2. Applicability
This position statement concerns all independent contractor loan processors and underwriters as these terms are
defined in section 12-61-902(4.9), C.R.S.
Section 3. Position Statement – MB 1.6 – Independent Contractor Loan Processors and Underwriters
The Director’s position on this matter is that all independent contractor loan processors and underwriters shall be
licensed as state-licensed loan originators by July 31, 2010. On and after August 1, 2010, independent contractor
loan processors or underwriters shall not engage in residential mortgage loan origination activities as a loan
processor or underwriter unless they are licensed as a state-licensed loan originator.
Section 4. Issuance Date
The Director of the Division of Real Estate issues this position statement July 22, 2009.
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