Volume-tiered surety bond required by the Colorado Division of Real Estate (DORA) for all licensed Mortgage Loan Originators and companies under the Colorado Mortgage Loan Originator Licensing Act.
The Colorado Mortgage Loan Originator (MLO) Bond is a surety bond required by the Colorado Division of Real Estate under the Colorado Mortgage Loan Originator Licensing Act (C.R.S. §12-10-701 et seq.) and Colorado DORA regulations. The bond amount scales with the licensee's prior year residential mortgage loan origination volume in Colorado:
| Annual Loan Volume | Required Bond Amount |
|---|---|
| $0 (new applicants) | $25,000 |
| $1 – $10 million | $25,000 |
| $10 million – $50 million | $50,000 |
| $50 million – $100 million | $100,000 |
| Over $100 million | $200,000 |
The bond protects Colorado consumers from financial harm caused by fraudulent or dishonest mortgage loan origination practices.
Colorado MLO licenses renew annually through NMLS. During renewal, the Division of Real Estate recalculates your required bond amount based on prior year loan volume. If your volume crossed a tier threshold, you must increase your bond before renewing. Budget 60–90 days before renewal to confirm the new amount and secure an updated bond.
The Colorado Division of Real Estate uses your prior calendar year origination volume on Colorado residential mortgage loans. New applicants with no prior Colorado volume default to the $25,000 starting tier. The amount is reviewed each renewal cycle.
Colorado requires the bond amount to match the tier for your most recent year's volume at the time of renewal. If volume drops, you can potentially reduce the bond. If it rises, you must increase it before the renewal is approved. The Division may verify origination data through NMLS.
Yes. Your surety can issue a bond rider (an addendum to the existing bond) increasing the face amount at renewal rather than issuing a new bond. This is the most common approach and avoids any confusion over bond number changes in NMLS records.
The bond covers your activities as a Colorado-licensed MLO under the Colorado Mortgage Loan Originator Licensing Act. This includes conventional, FHA, VA, USDA, and other residential loan types. The bond requirement applies to all residential mortgage origination, not just specific loan programs.
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