Which statement about the financial responsibility of a mortgage loan originator is NOT true?

In the context of mortgage loan origination, the financial responsibility of an originator can vary based on state regulations and the specifics of their sponsorship. The statement about a loan originator always needing to have a personal surety bond is not accurate because, in many cases, a loan originator working under the sponsorship of a licensed mortgage broker or lender may be covered under that entity's surety bond.

This means that as long as the originator is operating under a valid sponsoring license, they may not need a separate, personal surety bond if the sponsoring entity's bond fulfills the necessary financial responsibility requirements. This structure allows for a more streamlined process for loan originators, especially for those who are just beginning their careers or operating in specific capacities where full financial independence is not yet warranted.

The other statements reflect acceptable practices or requirements in the mortgage industry: the penal sum of a surety bond needing to reflect the value of originated loans ensures proper coverage; a sponsored loan originator can indeed be covered under a sponsoring licensee's surety bond; and some states may allow payment into a state fund as an alternative to obtaining a surety bond. However, the insistence on a loan originator having a separate personal surety bond does not hold