How is the surety bond amount for loan originators calculated in Ohio?

In Ohio, the surety bond amount required for loan originators is calculated based on a specific percentage of their origination volume, which is typically 1% of the total volume originated in the previous year. This ensures that the amount reflects the loan originator's activity and provides adequate coverage in the event of a claim against the bond. Therefore, selecting the statement that the bond amount is based on "not 1% of origination volume" is misleading, especially since the correct calculation is indeed anchored to a percentage of the origination volume, confirming that the bond requirement is clearly specified in state regulations.

Understanding the correct percentage and application of the surety bond is crucial for compliance within the lending industry. The surety bond serves as a safety net for consumers and ensures that loan originators remain accountable in their professional conduct.