Under which condition may the Commissioner increase the bond amount?

The Commissioner may increase the bond amount when a licensee employs several loan officers. This is because having multiple loan officers can increase the risk factors associated with the licensee’s operations. The bond serves as a financial guarantee to protect consumers against potential malpractice, fraud, or mismanagement by the loan officers. As the number of individuals involved in lending activities under a licensee increases, so does the potential for issues that could warrant a greater level of consumer protection. A higher bond amount would reflect this heightened risk and ensure adequate resources are available to address any claims that may arise from the activities of multiple loan officers.

In contrast, the other options do not directly justify an increase in the bond amount under typical circumstances defined by regulations governing mortgage lending. High volumes of loans could indicate a successful business but do not inherently increase liability. An outstanding complaint may raise concerns but typically would not lead to an automatic bond increase without evaluating the nature of the complaint. Lastly, a poor credit score may reference the financial stability of the licensee but does not directly correlate with the decision to raise bond requirements based on operational risks.