Anyone who seeks to operate as a mortgage lender in the State of Colorado must apply for a loan originator license with the National Multistate Licensing System (NMLS). This license authorizes the following activities:
- First and second mortgage brokering
- Foreclosure consulting / foreclosure rescue
- Home equity lending / lines of credit
- Reverse mortgage activities
- High cost home loans
- Third party mortgage loan processing (1099 employees only)
- Third party mortgage loan underwriting (1099 employees only)
- Mortgage loan modifications
As an important requirement of the licensing process, applicants must file a surety bond with the Colorado Division of Real Estate. The bond amount varies, depending on the number of licensees. Below is a breakdown of the bond limits:
- Individual License – $25,000 Bond Amount
- Less Than 20 Licensees – $100,000 Bond Amount
- More Than 20 Licensees – $200,000 Bond Amount
Colorado Mortgage Lender Surety Bonds are protection from acts of fraud, forgery, criminal impersonation or fraudulent impersonation committed by the Loan Originator while licensed in Colorado. Clients can file bond claims to seek reimbursement due to these acts.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.