A mortgage broker bond is a type of surety bond that is required in order to obtain a license to operate as a mortgage broker in some states. The purpose of the bond is to protect consumers from financial harm caused by the actions of the mortgage broker. Finding a trusted surety agency to help you obtain a mortgage broker bond is essential for your business. Working with Bonding Solutions can ensure
To obtain a mortgage broker bond, you will need first to determine if your state requires a mortgage broker bond and, if so, how much coverage you need. You can usually find this information on the website of your state’s regulatory agency, such as the Department of Financial Services or the Department of Real Estate.
The states that require mortgage brokers to have a surety bond vary. In some states, all mortgage brokers are required to have a surety bond, while in other states, only certain types of mortgage brokers are required to have a bond. Here is a list of states that currently require mortgage brokers to have a surety bond:
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- District of Columbia
- Georgia
- Illinois
- Indiana
- Kentucky
- Louisiana
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Rhode Island
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- West Virginia
It is important to note that this list is subject to change, as states may modify their requirements for mortgage brokers over time. It is always a good idea to check with your state’s regulatory agency to confirm the current requirements for obtaining a mortgage broker license.
Once you know the amount of coverage you need, you can start by applying with Bonding Solutions. Many surety bond companies offer mortgage broker bonds, and we will shop and compare quotes from several companies to find the best rate.
To get a quote started for a mortgage broker bond, you will usually need to provide some personal and financial information, including your credit score and any relevant financial documents.
When you are approved for a mortgage broker bond, you will be required to pay a premium to the surety bond company. The premium is a percentage of the total bond amount and is typically paid on an annual basis. Expect rates ranging from 0.5% to 3%. Once you have paid the premium, we will issue the bond and you can proceed with obtaining or renewing your mortgage brokers license.