Mortgage Loan Originator Bond
Mortgage professionals in the state of Colorado are required by state law to carry a Mortgage Loan Originator Bond. The purpose of this bond is to protect both the state and customers by obligating the mortgage professional to follow the rules of their license and protect against misleading and fraudulent lending practices.
Clients may file a claim against the bond if a mortgage professional breaks the law or any of the licensing rules. If the mortgage professional is found to be guilty of a claim, the surety will make payment to the client up to the value of the bond and then seek reimbursement from the bonded mortgage professional.
Individual brokers/loan originators must carry a $25,000 surety bond or be bonded under their employers group bond. MOrtgage companies may purchase a $100,000 bond for groups of less than 20 licenses or a $200,000 bond for groups of more than 20 licenses.
If you are a mortgage loan professional or employer looking for a Mortgage Loan Originator Bond in Colorado contact Reeder Insurance Agency today and we will get you taken care of!