The penal sum of a required surety bond for a loan originator must reflect:

The correct answer highlights that the penal sum of a required surety bond for a loan originator must reflect the dollar amount of loans originated. This is essential because surety bonds are designed to protect consumers and the general public from potential financial losses due to the misdeeds of the loan originator. By tying the bond amount to the dollar value of loans originated, it ensures that the bond amount is commensurate with the financial responsibility and the volume of business the loan originator handles.

Should a default occur, the penal sum provides a clear financial metric that represents the potential exposure to risk based on the loan originator's volume. This requirement serves to encourage responsible lending practices and provides a safety net for consumers and stakeholders involved in the lending process.