Colorado License Law
A Colorado broker who is also a licensed mortgage loan originator must:
ADisclose both licenses to clients involved in transactions where both services are offered✓ Correct
BChoose only one license to use at a time
CAutomatically represent both the buyer and the lender
DCharge a combined fee for both services
Explanation
A Colorado broker who holds both a real estate broker license and a mortgage loan originator (MLO) license must disclose both licenses to clients and explain any potential conflicts of interest when providing both real estate and mortgage services in the same transaction.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
State-Specific Concepts
Broker Supervision
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