By January 1, 2009, all mortgage brokers operating in Colorado need to complete ALL of the licensing requirements, including the latest addition of 40-hours of education and a licensing exam. As of today, less than 5% of mortgage brokers operating in Colorado have passed the state exam. Granted, its only September so brokers have a full four months to finish education and pass the exam.
There is a percentage of lenders operating in Colorado today who have no intention of completing the licensing requirements. Their plan is to exit the business by December 31, 2008.
So what does that mean to you if you need a mortgage? Now more than ever -- buyer beware. Lenders are opting not to complete the licensing for a variety of reasons. Some are changing industries. Some are not able to generate enough business in our current market to incur even more expense in the business. And some are not able or willing to commit the time and energy necessary to complete the licensing. For the later, some are trying to "make hay while the sun shines." Fear of penalties means nothing to these folks. Losing their license means nothing to these folks.
So, now more than ever, ask questions and get your lender from a trusted source such as your professional Realtor who has established quality lender connections over the years. Be very careful of the lenders you find on line too. Some are professional and then again, I have a long list of past clients who now wish they did not deal with the on line lender they found.
There is a percentage of lenders operating in Colorado today who have no intention of completing the licensing requirements. Their plan is to exit the business by December 31, 2008.
So what does that mean to you if you need a mortgage? Now more than ever -- buyer beware. Lenders are opting not to complete the licensing for a variety of reasons. Some are changing industries. Some are not able to generate enough business in our current market to incur even more expense in the business. And some are not able or willing to commit the time and energy necessary to complete the licensing. For the later, some are trying to "make hay while the sun shines." Fear of penalties means nothing to these folks. Losing their license means nothing to these folks.
So, now more than ever, ask questions and get your lender from a trusted source such as your professional Realtor who has established quality lender connections over the years. Be very careful of the lenders you find on line too. Some are professional and then again, I have a long list of past clients who now wish they did not deal with the on line lender they found.
Ask lots of questions and be sure you shop not only for the lowest interest rate, but also for a reputable lender.
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