A Colorado mortgage loan originator bond is required in one of three separate forms when applying for a license to originate mortgage loans in the state. While there are multiple prelicensing education, background investigation, examination and financial responsibility requirements, of the surety bonds of mortgage professionals only the ORIGINATOR must provide the Colorado mortgage loan originator bond. The mortgage “broker” licensee is exempt. The bond requirement is addressed in the permanent Colorado Rules 1-2-2. The purpose of this rule is to define the surety bond requirements for mortgage loan originators or any other individual required to be licensed pursuant to § 12-61-902 and § 12-61-903, C.R.S. Pursuant to Section 4. 1-2-2 three options are given. Option 1 – Mortgage loan originators, at a minimum, may acquire and maintain a Colorado mortgage loan originator bond if the surety bond is in the amount of $25,000.00, is in conformance with all relevant Colorado statutory requirements and is exclusive to covering acts contemplated under current Colorado mortgage loan originator licensing laws. Option 2 – Mortgage loan originators who are employees or exclusive agents for companies with less than twenty individuals who are required to be licensed and who do not work for more than one company may operate under their company’s surety bond if the Colorado mortgage loan originator bond is in the amount of $100,000.00, in conformance with all relevant Colorado statutory requirements, and covers the acts of all of the company’s W-2 employees or exclusive agents contemplated under current Colorado mortgage loan originator licensing laws. Option 3- Mortgage loan originators who are W-2 employees or exclusive agents for companies with twenty or more individuals who are required to be licensed and who do not work for more than one company may operate under a company’s surety bond if the Colorado mortgage loan originator bond is in the amount of two hundred thousand dollars ($200,000.00) and all of the bond form elements previously mentioned are included. The bond obligation in conditioned on the licensee’s payment to persons all damages incurred by such persons as a result of the originator’s acts of fraud, forgery, criminal impersonation or fraudulent impersonation while conducting business as a mortgage loan originator. Failure to maintain the surety bond is grounds for revocation of the license. Colorado surety leader, Surety One, Inc. is a specialist in the bonding needs of the mortgage services sector. We can underwrite both the surety and fidelity bond needs of mortgage professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a Colorado mortgage loan originator bond application or information on ANY surety need.
