Who needs this bond?
This bond is required for individuals and companies in Colorado who originate, broker, or modify mortgage loans. That includes mortgage loan originators (MLOs), mortgage brokers, and certain finance lenders licensed through the state.
If you are applying for a new license or renewing an existing one through the Nationwide Multistate Licensing System (NMLS) and the Colorado Division of Real Estate, you will be required to file a surety bond as part of your licensing approval.
The bond guarantees that you will follow Colorado’s mortgage and finance regulations when working with borrowers. If a licensed professional violates those rules and causes financial harm, a claim can be made against the bond.
How much does this bond cost?
The total bond amount required depends on your license type and business size. Individual mortgage loan originators are required to carry a $25,000 bond. Companies are required to carry a $100,000 or $200,000 bond depending on the number of employees.
You do not pay the full bond amount. Instead, you pay a small percentage of that amount as your premium. Most applicants pay between 1% and 5% of the required bond amount.
Your exact rate is based on factors such as your personal credit, financial stability, industry experience, and licensing history. Strong credit and financials typically qualify for lower rates.
How do I get this bond?
Getting your Colorado finance or mortgage broker bond is a straightforward process.
You complete a short application with basic business and personal information. The surety company reviews your credit and background information and then provides a quote. Once you pay the premium, the bond is issued so you can file it with the state through NMLS as part of your licensing process.
If you are still working through your mortgage license steps, you will also need to complete pre-license education, pass the required exam, complete background checks, and submit your application to the Colorado Division of Real Estate before you can begin originating loans.
Can I get this bond with bad credit?
Yes. Credit is one of the main factors used to determine your rate, but it does not automatically disqualify you.
Applicants with lower credit scores may pay a higher percentage of the bond amount, but approval is still possible in most cases. Additional financial information may be requested depending on your situation.
How fast can I get this bond?
Most Colorado mortgage and finance broker bonds can be approved the same day once your application is submitted.
In many cases, you can receive a quote quickly and have the bond issued shortly after payment, allowing you to move forward with your license filing without delay. More complex financial situations may require additional review time.
Are there any local requirements?
This bond is required at the state level through the Colorado Division of Real Estate and is filed electronically through NMLS as part of your mortgage or finance license.
Bond amounts are based on statewide requirements and may vary depending on whether you are applying as an individual or as a company and how many employees you have.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
