C.R.S.
Section 12-10-711
Powers and duties of the board
- rules
(1)
The board may deny an application for a license, refuse to renew, or revoke the license of an applicant or licensee who has:(a)
Filed an application with the board containing material misstatements of fact or omitted any disclosure required by this part 7;(b)
Within the last five years, been convicted of or pled guilty or nolo contendere to a crime involving fraud, deceit, material misrepresentation, theft, or the breach of a fiduciary duty, except as otherwise set forth in this part 7;(c)
Except as otherwise set forth in this part 7, 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 the discipline denied the person authorization to practice as:(I)
A mortgage broker or a mortgage loan originator;(II)
A real estate broker, as defined by section 12-10-201 (6);(III)
A real estate salesperson;(IV)
A real estate appraiser, as defined by section 12-10-602 (9);(V)
An insurance producer, as defined by section 10-2-103 (6);(VI)
An attorney;(VII)
A securities broker-dealer, as defined by section 11-51-201 (2);(VIII)
A securities sales representative, as defined by section 11-51-201 (14);(IX)
An investment advisor, as defined by section 11-51-201 (9.5); or(X)
An investment advisor representative, as defined by section 11-51-201 (9.6);(d)
Been enjoined within the immediately preceding five years under the laws of this or any other state or of the United States from engaging in deceptive conduct relating to the brokering of or originating a mortgage loan;(e)
Been found to have violated the provisions of section 12-10-721;(f)
Been found to have violated the provisions of section 12-10-713;(g)
Not demonstrated financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the individual will operate honestly, fairly, and efficiently, consistent with the purposes of this part 7;(h)
Not completed the prelicense education requirements set forth in section 12-10-704 and any applicable rules of the board; or(i)
Not passed a written examination that meets the requirements set forth in section 12-10-704 and any applicable rules of the board.(2)
The board shall deny an application for a license, refuse to renew, or revoke the license of an applicant or licensee who has:(a)
Intentionally left blank —Ed.(I)
Had a mortgage loan originator license or similar license revoked in any jurisdiction.(II)
If a revocation is subsequently formally nullified, the license is not revoked for purposes of this subsection (2)(a).(b)
Intentionally left blank —Ed.(I)
At any time been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering.(II)
If the individual obtains a pardon of the conviction, the board shall not deem the individual convicted for purposes of this subsection (2)(b).(c)
Been convicted of, or pled guilty or nolo contendere to, a felony within the immediately preceding seven years.(3)
The board may investigate the activities of a licensee or other person that present grounds for disciplinary action under this part 7 or that violate section 12-10-720 (1).(4)
Intentionally left blank —Ed.(a)
If the board has reasonable grounds to believe that a mortgage loan originator is no longer qualified under subsection (1) of this section, the board may summarily suspend the mortgage loan originator’s license pending a hearing to revoke the license. A summary suspension shall conform to article 4 of title 24.(b)
The board shall suspend the license of a mortgage loan originator who fails to maintain the bond required by section 12-10-717 until the licensee complies with that section.(5)
The board or an administrative law judge appointed pursuant to part 10 of article 30 of title 24 shall conduct disciplinary hearings concerning mortgage loan originators and mortgage companies. The hearings shall conform to article 4 of title 24.(6)
Intentionally left blank —Ed.(a)
Except as provided in subsection (6)(b) of this section, an individual whose license has been revoked shall not be eligible for licensure for two years after the effective date of the revocation.(b)
If the board or an administrative law judge determines that an application contained a misstatement of fact or omitted a required disclosure due to an unintentional error, the board shall allow the applicant to correct the application. Upon receipt of the corrected and completed application, the board or administrative law judge shall not bar the applicant from being licensed on the basis of the unintentional misstatement or omission.(7)
Intentionally left blank —Ed.(a)
The board or an administrative law judge may administer oaths, take affirmations of witnesses, and issue subpoenas to compel the attendance of witnesses and the production of all relevant papers, books, records, documentary evidence, and materials in any hearing or investigation conducted by the board or an administrative law judge. The board may request any information relevant to the investigation, including, but not limited to, independent credit reports obtained from a consumer reporting agency described in the federal “Fair Credit Reporting Act”, 15 U.S.C. sec. 1681a (p).(b)
Upon failure of a witness to comply with a subpoena or process, the district court of the county in which the subpoenaed witness resides or conducts business may issue an order requiring the witness to appear before the board or administrative law judge; produce the relevant papers, books, records, documentary evidence, testimony, or materials in question; or both. Failure to obey the order of the court may be punished as a contempt of court. The board or an administrative law judge may apply for an order.(c)
The licensee or individual who, after an investigation under this part 7, is found to be in violation of a provision of this part 7 shall be responsible for paying all reasonable and necessary costs of the division arising from subpoenas or requests issued pursuant to this subsection (7), including court costs for an action brought pursuant to subsection (7)(b) of this section.(8)
Intentionally left blank —Ed.(a)
If the board has reasonable cause to believe that an individual is violating this part 7, including but not limited to section 12-10-720 (1), the board may enter an order requiring the individual to cease and desist the violations.(b)
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 7, any individual violating any provision of this part 7 or any rules promulgated pursuant to this article 10 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.(c)
All fines collected pursuant to this subsection (8) shall be transferred to the state treasurer, who shall credit them to the division of real estate cash fund created in section 12-10-215.(9)
The board shall keep records of the individuals licensed as mortgage loan originators and of disciplinary proceedings. The records kept by the board shall be open to public inspection in a reasonable time and manner determined by the board.(10)
The board shall maintain a system, which may include, without limitation, a hotline or website, that gives consumers a reasonably easy method for making complaints about a mortgage loan originator.(11)
The board shall promulgate rules to allow licensed mortgage loan originators to hire unlicensed mortgage loan originators under temporary licenses. If an unlicensed mortgage loan originator has initiated the application process for a license, he or she shall be assigned a temporary license for a reasonable period until a license is approved or denied. The licensed mortgage loan originator who employs an unlicensed mortgage loan originator shall be held responsible under all applicable provisions of law, including without limitation this part 7 and section 38-40-105, for the actions of the unlicensed mortgage loan originator to whom a temporary license has been assigned under this subsection (11).
Source:
Section 12-10-711 — Powers and duties of the board - rules, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-12.pdf (accessed Oct. 20, 2023).
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