Wednesday, June 1, 2011

Legislation creating exemptions for mortgage loan originators (in some cases) passes General Assembly

UPDATE: This bill has been signed into law.

The Colorado General Assembly has passed Senate Bill 206 which exempts certain housing non-profits from the provisions of the SAFE Act when not in conflict with existing federal rules. If the legislation is signed by the governor, the qualifying organizations will be able to originate loans without the need to license staff under the provisions of the SAFE Act and the Colorado mortgage loan origination program. All organizations not exempted by Senate Bill 206 will still be subject to licensing rules.

The text of the legislation is available here.

See the Division of Housing memo on SAFE Act requirements and provisions here.

The bill contains a safety clause and does not stipulate an enactment date, so if the bill is signed by the governor, the bill will take effect when it is signed.