Uniform State Content (SAFE Act)Question 397 of 400
How does the surety bond amount for a state-licensed MLO or company typically vary?
a.It generally scales with the dollar volume of residential mortgage loans originated
b.It is a flat $50 fee for every licensee nationwide
c.It decreases as loan volume increases
d.It is set by the individual borrower at closing
Explanation
States commonly set surety bond amounts on a sliding scale tied to the volume of residential mortgage loans originated, so higher-volume originators carry larger bonds. This scales consumer protection to the level of activity. The bond is not a flat nominal fee and is not set by borrowers.
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