A mortgage loan originator company originated $75 million in residential mortgage loans last year. What is the minimum surety bond amount this company must maintain?
Correct Answer
C) $75,000
Under the SAFE Act, the surety bond amount is based on loan volume: $20,000 base plus $5,000 for each $10 million in loans originated. For $75 million: $20,000 + (7 × $5,000) = $55,000, but the bond must be at least $75,000 for companies originating over $50 million.
Why This Is the Correct Answer
Under the SAFE Act, the surety bond amount is based on loan volume: $20,000 base plus $5,000 for each $10 million in loans originated. For $75 million: $20,000 + (7 × $5,000) = $55,000, but the bond must be at least $75,000 for companies originating over $50 million.
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