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An Alabama mortgage broker originated $120 million in loans this year. Their current surety bond is $50,000. What must happen at renewal?

Uniform State Test (UST) · 11% of the SAFE exammedium

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Correct answer: The bond must increase to $75,000 because volume now exceeds $100 million

Alabama surety bonds are tiered by prior-year loan volume: $25,000 (up to $25M), $50,000 ($25M-$100M), $75,000 (over $100M). This broker's volume grew from the $25M-$100M tier to the over-$100M tier, so the bond must increase from $50,000 to $75,000 at renewal. The bond must be maintained throughout the license period. Failure to maintain the required bond amount is grounds for license suspension or revocation. Students often miss that bond requirements CHANGE as volume changes.

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