Several Colorado Mortgage Brokers and Dealers are exempt from Colorado licensing requirements. A mortgage broker whose business is not limited exclusively to placing mortgage loans with institutional investors is subject to the mortgage licensing requirements under the Colorado State securities laws. Hence, a mortgage broker who raises money from individual investors to fund mortgage loans would need to be licensed.

Following are the requirements to obtain a Colorado State Mortgage Broker License:

1. Enclose required application fees for the appropriate license. Make sure that the check is payable to the Colorado State Treasurer.
2. Enclose Form BD along with your application.
3. Agent application Form U-4 for each person who will represent the firm in Colorado as sales representative and proof that applicant has passed the Uniform Securities Agent State Law Examination (Series 63). Individuals who are licensed as a real estate broker or salesman are excused from this examination requirement. When filing, provide proof of real estate licensure.
4. Request a Uniform Qualifications Examinations Form (Form U-10). The Form U-10 and examination fees should be submitted to the National Association of Securities Dealers, Inc. (address on the form) and not to the Colorado Division of Securities.
5. At lease one person must be designated as primarily responsible to supervise all licensed sales representatives. The box named "Other" under Item 11 of Form U-4 should be marked. Then insert the phrase "Designated Supervisor."
6. A mortgage broker-dealer who maintains possession or control of investor funds or securities must meet certain financial responsibility requirements. At the time of application for license, provide proof of compliance with such requirements, if applicable.

The forms that are required to be filed along with the application can be obtained online by accessing the following links:

Form BD – This is the uniform application for Broker-Dealer registration. All applicants must file this form that enables them to register with the Securities and Exchange Commission, the self-regulatory organizations, and jurisdictions through the Central Registration Depository (“CRD”) system. These are regulated by the NASD.

Form U-10 – This is the Uniform Examination Request for non-NASD Candidates, is designed for use by individuals not employed or associated with NASD member firms who, as part of a registration process, have been specifically required by another regulatory authority to qualify by examination.
 
For additional information, visit Division of Securities, Department of Regulatory Agencies.