On January 19, Colorado had 3,614 licensed and approved loan officers, a 25% decline from just two weeks earlier, a sign that new licensing and testing requirements are weeding out professionals in the industry.
According to Bill Kidwell, a former state trade group official who now runs IMMAAG, the reduction in numbers is due to LOs from nonbanks and brokerage firms either not passing the SAFE Act test, or deciding not to re-register with the state for 2011.
Kidwell said that although the decline in LOs might look dramatic, there's an upside for the survivors. "They'll be getting increased market share," he told National Mortgage News.
He also noted that it's getting more expensive to be a nonbank LO or mortgage broker in Colorado. Until recently, the state license renewal fee was $298 for three years. But with the industry being regulated more tightly the fee has been hiked to $915 for three years.
In a week, LOs at depositories will begin registering with regulators.
