Mortgage Loan Originator Insurance Requirements

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