A mortgage loan originator company originated $125 million in loans last year. Their current surety bond is $100,000. What action must they take?
Correct Answer
C) Increase the bond to $150,000
For $125 million in originations: $20,000 base + $5,000 for each complete $10 million = $20,000 + (12 × $5,000) = $80,000. However, companies originating over $100 million must maintain at least $150,000 in surety bond coverage.
Why This Is the Correct Answer
For $125 million in originations: $20,000 base + $5,000 for each complete $10 million = $20,000 + (12 × $5,000) = $80,000. However, companies originating over $100 million must maintain at least $150,000 in surety bond coverage.
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