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| Colorado – Individual Mortgage Loan Originator Bond |  |
| Colorado – Mortgage Loan Originator (20 or More Licenses) ($200,000) Bond | |
| Colorado – Mortgage Loan Originator (Less than 20 Licenses) ($100,000) Bond | |
Introduction
A Colorado Mortgage Loan Originator (MLO) is a licensed professional authorized to take mortgage loan applications or negotiate residential loan terms for compensation in Colorado. Regulated by the Colorado Division of Real Estate, MLOs must meet strict licensing requirements, including completing pre-licensing education, passing a national exam, submitting to background and credit checks, and obtaining a surety bond. Their role is to help borrowers secure home loans while ensuring compliance with state and federal lending laws.
Explanation Colorado Mortgage Loan Originator Bond
The Colorado Mortgage Loan Originator Bond is a surety bond required by the Colorado Division of Real Estate for individuals applying for or renewing a Mortgage Loan Originator (MLO) license in the state. It serves as a financial guarantee that the licensed MLO will comply with all applicable state and federal mortgage lending laws, protecting borrowers and the public from misconduct, fraud, or unethical lending practices.
Purpose of the Bond
This bond protects consumers by:
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Ensuring the MLO performs duties ethically and legally.
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Providing a financial remedy if the MLO violates Colorado law or harms borrowers through negligence or fraud.
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Ensuring compliance with the Colorado Mortgage Loan Originator Licensing and Mortgage Company Registration Act.
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Who Needs the Bond?
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All independent MLOs not covered by a licensed employer’s company bond.
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MLOs applying for a license through the Nationwide Multistate Licensing System (NMLS).
Key Parties to the Bond
- Principal – The licensed Mortgage Loan Originator
- Obligee – The Colorado Division of Real Estate
- Surety – The bonding company guaranteeing payment if the principal defaults
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Process of Getting the Colorado Mortgage Loan Originator Bond
If you’re applying to become a licensed Mortgage Loan Originator (MLO) in Colorado, here’s how to obtain the required surety bond:
Step 1: Determine If You Need the Bond
- You need the bond if you are applying as an individual or working for a mortgage company that does not cover you under a company-level surety bond.
Step 2: Gather Required Information
- Prepare the following details for the bond application.
Step 3: Contact a Licensed Surety Bond Provider
- Choose a bonding company or agency authorized to issue surety bonds in Colorado.
Step 4: Receive and Review Your Bond
After approval:
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The surety will issue the bond document, identifying:
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You as the Principal
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Colorado Division of Real Estate as the Obligee
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The surety company’s name and bond number
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Conclusion
The Colorado Mortgage Loan Originator Bond is a critical licensing requirement that protects consumers and the state from dishonest or unlawful mortgage lending practices. It ensures accountability, compliance, and professional conduct within Colorado’s residential mortgage industry.
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Frequently Asked Questions (FAQs)
What happens if a claim is made against the bond?
If a consumer suffers financial loss due to an MLO’s violation of lending laws, they can file a claim against the bond. If valid, the surety may pay, and the MLO must reimburse the surety.
What happens if I let the bond lapse?
If your bond lapses, your MLO license will become non-compliant, and the Colorado Division of Real Estate may suspend or revoke your license until a valid bond is reinstated.
Can I combine this bond with other bonds I already hold?
No. The Colorado MLO bond must be a standalone surety bond, specifically issued to meet the requirements of the Colorado Division of Real Estate under the MLO licensing statute.
What if I move to another state—can the Colorado bond be transferred?
No. Surety bonds are state-specific and cannot be transferred across jurisdictions. If you are licensed in another state, you must comply with that state’s bond requirements separately.
What if I’m denied a bond due to bad credit?
Some surety companies specialize in non-standard or high-risk bonding. While you may pay a higher premium, it is often still possible to obtain the required bond with poor credit.
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