The state of Colorado does not currently require a surety bond. There is a push for legislation for a $100,000 bond requirement. Therefore for the purposes of this article we will assume the legislation is passed.
Current Market: The current bond market is conservative in nature. A $100,000 bond is quite large for most bonding companies and they will underwrite with a good amount of caution. However, mortgage broker bonds in general are considered less risky than your average license and permit bond. Therefore, some bonding companies will still approve bonds as large as $100,000 rather easily.
Bond Amount: A $100,000 bond is on the higher end in comparison to other states. Although, most other states bond amounts are quite dated and need to be raised. The Colorado requirement is right about where it should be with the current price of homes and the loans involved. Most applicants will not have a problem obtaining a bond of this size.
Bond Form: Obviously, the bond form has not been drafted, as the legislation has not been passed. The bond form should not be a problem for any surety, provided that it has a cancellation clause, aggregate clause, and does not have a tail.
Additional State Requirements: Colorado Mortgage Brokers are regulated by the Division of Securities of the Colorado Department of Regulatory Agencies. The Colorado Association of Mortgage Brokers (a non-profit association), assists mortgage brokers in learning how to properly process loans. An affiliate of the National Association of Mortgage Brokers, known as CAMB, provides educational help for those working as a Mortgage Broker in Colorado. The CAMB is currently promoting legislation for licensing of mortgage broker in Colorado. The state does not require a physical office within the state.
Special Programs: We offer an exclusive â€œInstant Approval Online Programâ€? for this particular bond. The application takes less than five minutes to complete and the quote is given to you immediately, online. You can access the program at: Mortgage Broker – Instant Approval Online Program.