Mortgage License Bonds
We offer the following Mortgage License Bonds:
Filter Bonds
How much does a mortgage broker bond cost?
No credit check or financials needed up to $1M in aggregate bonds, your bond premium (your cost) is a flat rate of only $6 per thousand of the bond amount.
What is a mortgage broker surety bond?
A mortgage broker surety bond is a binding legal agreement designed to encourage honest, ethical and legal behavior in how you run your brokerage. If you act in violation of state regulations and cause harm to your clients, the surety that holds the bond can be tapped to compensate them for financial losses. You, the licensed mortgage loan broker or originator, will then be required to pay back the full amount to the surety company. This loan broker/originator bond policy is one of the most popular types of surety bonds required for mortgage professionals. However, depending on the type of mortgage license you hold, you may need to purchase a mortgage banker/lender bond instead of a broker bond. Alternatively, a mortgage servicer bond may be necessary based on your licensure.
These three license bonds are very similar in their purpose and function, but coverage amounts and premiums vary.
Cost of Mortgage Company Bonds
| State | Mortgage Broker Bond | Mortgage Banker/ Lender Bond | Mortgage Servicer Bond | Cost* (Annual Premium) |
|---|---|---|---|---|
| Colorado | $25,000 / $15,000 | N/A | N/A | $6 per thousand of bond amount |
| Illinois | $20,000 - $150,000 | $20,000 - $150,000 | $50,000 | $6 per thousand of bond amount |
| New York | $10,000 - $150,000 | $50,000 - $500,000 | TBD | $6 per thousand of bond amount |
| Virginia | $25,000 - $150,000 | $25,000 - $150,000 | TBD | $6 per thousand of bond amount |
| New Jersey | $100,000 - $300,000 | $100,000 - $300,000 | TBD | $6 per thousand of bond amount |
What are the surety bond requirements for mortgage brokers and lenders?
Many states require mortgage brokers, or loan originators, to post a surety bond as part of the licensing process to operate a mortgage loan business. In addition to being licensed, mortgage bankers/lenders must also get a surety bond to guarantee compliance with state regulations governing this line of business.
Laws regulating mortgage loan professionals vary from state to state. Here are some general steps to take if you want to qualify for a mortgage surety bond:
- Get in touch with the department in your state government that handles business licensing. Many states have helpful websites with checklists for getting started.
- Determine the bond amount required in your state and the exact license type needed (e.g. Broker/Lender/Servicer).
- Contact us for a free quote and begin the application process for a mortgage broker bond.
You should check the regulations in your state for specifics related to your mortgage brokerage, lending, or servicing business.