Colorado Mortgage Broker Bond
Mortgage brokers connect aspiring home buyers with loan offers from various lenders. This is an important and in-demand job throughout the Mile High State, but you need to meet various requirements before you can work legally. One of those requirements is to get a Colorado mortgage broker bond, also known as a Colorado mortgage loan originator bond. Here's a rundown on how this surety bond works.
How Does a Colorado Mortgage Broker Bond Work?
It holds someone accountable for following all the laws and regulations that apply to Colorado mortgage brokers. If a bondholder violates one or more of those laws, causing financial damages to a mortgage seeker, that person can file a claim against the bond for compensation. Valid claims must be paid by the mortgage broker who caused them. But if they refuse, the bond company will settle the claim. The mortgage broker must then repay the bond company or lose bond coverage and face legal action. In that way, this and all other surety bond types make someone financially liable for their misconduct.
Colorado Mortgage Broker Bond Requirements
Colorado mortgage broker surety bond requirements can be one of the following:
- $25,000 coverage for individuals.
- $100,000 coverage for groups of less than 20 people.
- $200,000 coverage for groups of more than 20 people.
How to Get a Colorado Mortgage Broker Bond
Be prepared to meet these application requirements:
- Complete a surety bond application
- Agree to a credit check
- Supply additional documentation (when necessary)
The surety bond company will use this information to quote the surety bond cost. The last step is to pay that amount (called the premium) to activate coverage.
The Cost of a Colorado Mortgage Broker Bond
Surety bond premiums cost a small percentage of the coverage amount. So, for a $25,000 Colorado mortgage loan originator bond, the premium will likely be less than $1,000. Exact costs are different for everyone and based on credit scores and financial history. If bad credit makes it harder or more expensive to get surety bonds in Colorado, take advantage of the special program offered by Viking Bond Service.
Colorado Mortgage Broker Bond From Viking Bond Service
We serve mortgage brokers in all parts of Colorado, and we make it fast, easy, and affordable to get the surety bond you're required to have. Request a quote to find out how much it would cost. Rely on our team for help with any surety bond need—contact us or call 1-888-2-SURETY (1-888-278-7389).
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