What is a Colorado Mortgage Broker or Loan Originator Bond?
Learn about this bond and how to quickly obtain one today!
The bond is required by the Division of Real Estate, by the Mortgage Loan Originator Licensing and Mortgage Company Registration Act, for those who wish to be licensed as a Mortgage Broker or Loan Originator in the state of Colorado.
Non-compliance with this requirement may result in certain sanctions such as, but not limited to the following:
- License revocation
- Refusal to renew a license
- Imposition of fines
- Restitution for any financial loss
What is the bond amount?
The bond amount will depend on the number of license applicants. It will be as follows:
As for the bond premium, you may be eligible to pay just 1% of the bond amount! If you want to know what you need to pay today, get your FREE quote here!
What are the Mortgage Broker or Loan Originator Bond conditions?
- The surety bond should comply with all applicable Colorado statutory requirements
- The surety bond should be able to cover acts stated in the current Colorado mortgage loan originator licensing laws
- The surety bond will not cover any transactions or performance of duty beyond the jurisdiction of the Board of Mortgage Loan Originators (the “Board”)
- The surety bond should be written in the same format as the surety bond created and approved by the Board of Mortgage Loan Originators
- For company surety bonds (less than 20 licensees to 20 or more licensees):
- The surety bond should cover all acts of the company’s W-2 employees or exclusive agents stated in the current Colorado mortgage loan originator licensing laws
- The company shall submit to the Board surety bonds that apply to this rule
- The company should also provide proof regarding the timeline of employment for each operating under such company policy
- The surety bond will remain valid until canceled.
How can I obtain this type of bond?
By sending an application to a surety bond company that is authorized in Colorado, such as Surety Bond Authority.
You will go through the pre-qualification process which involves a complete assessment of your financial history, job performance history, and credit score by an expert underwriter.
Once that’s been satisfied, we will execute the bond and send it to you immediately!
What are the other Mortgage Broker or Loan Originator license requirements?
- The license applicant should be in good standing with the Colorado Secretary of State
- The license applicant should not be legally barred from operating in Colorado
- Submit a competed Colorado Mortgage Broker Application form 31-1199
- Pay the necessary application fees
Are you ready to get started on your bond? Call us today!