Colorado Mortgage Loan Originator Bond

Mortgage brokers in the state of Colorado must adhere to a new law labeled HB 1085. The new law reclassifies mortgage brokers as mortgage loan originators. HB 1085 also subjects them to a revised surety bond requirement. The previous law required mortgage brokers to post a license bond or an alternative security in the total of $25,000. HB 1085 terminates the choice of using an alternative security, and allows the Director of the Division of Real Estate to set the quantity of the surety bond through regulations in place of the amount called for in the present law. The new law was enacted on May 21st, 2009.