Colorado Mortgage Broker, Loan Originator or Company Bond

Get a Free Quote for Your Colorado Mortgage Loan Originator Bond Today

Who is Required To Purchase a Colorado Mortgage Broker Bond?

The Colorado Division of Real Estate only requires a bond for mortgage loan originators.

Just to recap, a mortgage originator, also called a mortgage broker, is responsible for helping consumers find the best mortgage product to meet their qualifications and financing requirements.

However, unlike many states, the Division does require individuals to purchase a mortgage broker bond before they can get licensed.

Companies who hire multiple originators purchase this same bond but in a different amount to cover however many originator employees they have.

Why is a Colorado Mortgage Loan Originator Bond Required?

The Colorado Department of Regulatory Affairs and the Division of Real Estate is responsible for the licensing guidelines for mortgage originators.

These licensing guidelines are a set of standards and regulations you're committing yourself and your business to follow so you can legally conduct business in Colorado.

And even with these requirements in place, every year there will be a handful of mortgage professionals and companies who commit mortgage fraud to make more money:

Examples of fraudulent actions can include:

• Approving a borrower for a loan they can't afford
• Helping a borrower get approved for a loan by providing false information
• Hindering a borrower from getting approved by providing false information
• Pressing a borrower to enter a high commission loan to make more money
• Creating and charge fabricated fees

The mortgage broker surety bond is available as financial protection for customers affected by these and similar actions.

If a customer is financially harmed, they can make a claim against the mortgage bond for financial compensation. The total compensation available only extends to the amount of the bond.

What Are The Colorado Mortgage Broker Bond Amounts?

Individual Mortgage Originators/Brokers

Mortgage originators (or brokers) have a bond amount of $25,000 per individual.

Upon renewal of your license and with updated financials or how many mortgages you're selling, it's possible the Division may require a higher bond amount.

If this is the case, you will be told a specific bond amount by the Division.

Mortgage Companies

If you're a mortgage company the bond amount is going to depend on the number of mortgage originators who work for you.

Just like with individuals, upon renewal of your license and company financials, the Division may require a higher bond amount.

This amount will be told to you, if it's required.

Remember the bond amount is the maximum level of financial compensation available to your customers. It's not the price although it will help determine the price.

How Much Does a Colorado Mortgage Broker Bond Cost?

The price of a mortgage originator or broker bond is determined by a rate, quoted from a surety.

A surety is an insurance company who chooses to underwrite mortgage broker bonds.

Every surety, while looking at similar factors will perform their own, independent, assessment of the applicant. The major factors they look at are:

• Personal credit of the individual or business owner or owners
• Mortgage and financial lending experience
• Prior bond claims if the individual or owner has been licensed in the past

Based on these factors the surety will quote a rate.

This is where using a specialized surety agency like Surety Bonds Direct is so valuable.

• We price shop for you
• Find the lowest possible price
• And help you purchase your surety bond.

It costs you nothing to have us find you the lowest price and once you get your pricing, you're under no obligation to purchase. Obtaining pricing is free information.

There's no reason to request your free quote right now or call a bond specialist at 1-800-608-9950.

Mortgage Broker Bond Price Example

Let's look at the $100,000 bond amount for mortgage brokers.

Pay attention to the rates and how one percentage point can make huge difference in the price, saving you hundreds of dollars.

You can see the rate you're quoted can make a huge difference.

And while example pricing is great, you can get your exact price with no risk or obligation to purchase within one business day.

Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase. Quotes are good for 30 days.

How To File Your Mortgage Broker or Lender Bond?

After you agree to a price, purchasing your bond is as easy as completing an online checkout form.

Once your payment is processed, our issuance team will immediately begin the process to issue your bond with the National Multi-State Licensing System.

We provide you with detailed instructions to help us file your bond. The process takes only a few minutes.

How Long Does a Colorado Mortgage Broker Bond Last?

The Colorado Division of Real Estate requires an active surety bond on file with the NMLS (National Multi-State Licensing System) to legally conduct business in Colorado.

Every mortgage broker and lender bond has a bond term or 12 months from the effective date.

The effective date is a date you choose when you purchase your bond. This is the "activation" date of your bond.

12 months from this date, your bond will have to be renewed.

How Do You Renew a Mortgage Broker and Lender Bond?

Renewing a mortgage broker and lender bond is easy. As your bond expiration date approaches, your bond specialist will contact you 30 to 45 days in advance to ensure you don't miss paying the renewal premium.

Your bond specialist will have renewal pricing already quoted allowing this process to get finished with little headache or effort.

Once you pay the renewal premium, your bond remains active. You don't have to do anything.

Mortgage Loan Originator Bonds And Getting Your Colorado Business License/Registration

Colorado does a great job or outlining the process on their Division of Real Estate page. Make sure you check that out.

Here's a brief breakdown of each step.

Step 1: Complete the Background Check

Each owner will have to submit a set of fingerprints for a background check from the Colorado Bureau of Investigation.

You able to submit your fingerprints using one of the following methods:

• Resident Colorado Fingerprinting service
• IndentoGO by Indemia (good for non residents)
• A physical fingerprint card and electronic transfer

Step 2: NMLS Registration

You will need to create an account and profile with the NMLS. This is where you will upload all of your application paperwork including e-filing the surety bond.

Step 3: NMLS National Background Check

You are required to complete the NMLS background check in addition to the Colorado background check from step 1.

Step 4: NMLS Approved License Education

You must complete 20 hours of eduction before you submit your application consisting of:

• 3 hours of Federal mortgage law
• 3 hours of ethics
• 2 hours of non-traditional mortgage lending
• 2 hours of Colorado state-specific electives
• 10 hours or general electives

Step 5: Pass The S.A.F.E MLO Exam

Once you achieve the necessary hours of education, you must pass the National S.A.F.E MLO examination.

The test has a fee of $110 and consists of 120 questions, lasting 190 minutes.

Step 6: Purchase Required Insurance

Purchasing the required insurance includes:

• Errors and Omissions insurance
• The surety bond requirement

Step 7: Complete the Application and Submit

Complete your NMLS application with the required proof and scores from all the above steps.