According to the National Mortgage Licensing System, “all persons who originate a mortgage or offer to originate a mortgage” are required to be licensed in order to conduct business in the State of Colorado. Filing a surety bond is a critical component of the license application process. The Colorado Mortgage Loan Originators Bond ensures financial compensation for valid claims of fraud, forgery, criminal impersonation, or fraudulent representation by the loan originator.
In compliance with Colorado Revised Statutes Section 12-61-907, the required amount of a Colorado Mortgage Loan Originators Bond is determined by the Board of Mortgage Loan Originators.
The Colorado Mortgage Loan Originator Bond is continuous in nature; therefore, it remains in full force and effect until cancelled. The bond may be cancelled at any time by notice to the Board within 30 days of the effective cancellation date.
All fees are required by the obligee, not the Surety Company.