Active Mortgage Loan Originators are required to maintain errors and omissions insurance as well as a surety bond.
Mortgage companies are required to be registered on the NMLS. Additionally, pursuant to section 12-10-705 C.R.S., mortgage companies must meet the following:
- be in good standing with the Colorado Secretary of State, and
- not be legally barred from operating in Colorado
The Colorado Division of Real Estate has contracted with Rice Insurance Services Company, LLC to administer the group E&O insurance program for Colorado mortgage loan originators.
- Enrollment is available online or via phone at 800-637-7319.
- Individual licensees and mortgage companies are free to search the market for their policies.
- You are required to provide proof of continuous errors and omissions insurance coverage and that all required information is current with the Division.
Minimum E&O Limits
Individual Policy
- Minimum Coverage = $100,000.00
- Minimum Annual Aggregate Limit = $300,000.00
- Deductible No Greater Than = $1,000.00 or ($20,000.00 for policies that insure reverse mortgages)
Group: Less than 20 Licensees
- Minimum Coverage = $1,000,000.00
- Minimum Annual Aggregate Limit = $1,000,000.00
- Deductible No Greater Than = $50,000.00
Group: 20 or more Licensees
- Minimum Coverage = $1,000,000.00
- Minimum Annual Aggregate Limit = $2,000,000.00
- Deductible No Greater Than = $100,000.00
You are required to provide proof of continuous surety bond coverage and that all required information is current with the Division.
Minimum Surety bond Requirements
Individual Policy
- Minimum Bond Amount = $25,000.00
Group: Less than 20 Licensees
- Minimum Bond Amount = $100,000.00
Group: 20 or more Licensees
- Minimum Bond Amount = $200,000.00