Colorado Mortgage Broker Bond | Mortgage Loan Originator Bond

The cost of a Colorado mortgage broker bond is at least $250, depending on the size of the bond. In Colorado, mortgage brokers (aka mortgage loan originators) must carry a $25,000 bond. However, mortgage agencies with multiple employees can carry a single bond for a higher amount.

If you have fewer than 20 employees, the group bond is $100,000. The amount goes to $200,000 if you have more than 20 employees. Your credit score and other factors can impact how much you pay for the bond premium. Typically, the premium is calculated at about one to three percent of the bond total.

Here’s a breakdown of costs for Colorado's three different bond requirements and how they vary based on your credit score.

If you’re an individual mortgage broker, you can apply for a single bond for yourself. However, if you’re in charge of an agency, you can determine whether the group bond is a better option. For example, if you only have three employees, it’s better to have individual bonds. But if your agency has five or more employees, a group bond can help you save money.

No matter what, Lance Surety Bonds can help you get bonded quickly and conveniently. We recently helped a mortgage broker in Colorado Springs get bonded so she could start helping her clients move into the homes of their dreams.

Step 1: Apply for Your Bond

Using our application form, you can fill out some basic information about your business, yourself, and the type of bond you want. This process only takes a few minutes, especially if you have all your details handy.

Step 2: Get a Quote

Typically, bond premium quotes take a matter of minutes to process, and we promise to offer the best rate possible. However, in some cases, your application might take up to 24 hours to process, depending on the situation.

Step 3: Purchase Your Bond

Once you pay your bond premium, you’re fully bonded in Colorado. Usually, mortgage broker bonds are valid for 12 months, but there may be situations where the bond expires sooner. You must have an active bond to be a licensed mortgage broker.

All mortgage brokers and mortgage loan originators must be licensed and bonded to do business in Colorado. According to the Division of Real Estate, all mortgage broker licenses expire on December 31st of each year, regardless of when they were issued.

So, it’s best to renew your license and your bond at the same time. The renewal period runs from November 1st to December 31st of each year, and there is no grace period. If you miss the deadline, you must file for reinstatement before February 1st of the following year.

You must show that your bond is active when renewing, so we recommend doing this first before submitting your paperwork. A sample surety bond form tells you the information you must provide.

Although the renewal period is the same every year, we’ll notify you as the deadline approaches so you never forget.