A Georgia mortgage broker bond is a surety bond that ensures a licensed mortgage broker will follow the rules of their trade. The Georgia Department of Banking and Finance requires mortgage brokers to post a $150,000 surety bond in order to obtain a mortgage broker license. This bond has no set expiration date, so it’s typically effective for a one-year term regardless of when you buy it.
A mortgage broker bond guarantees that the licensed individual adheres to all laws and regulations set by the governing entity. It’s a means of protecting the public and the government from harmful acts committed by licensed mortgage brokers.
If the licensed broker fails to follow their licensing regulations or commits a fraudulent/illegal act, then any injured party may file a claim on the broker’s surety bond. The surety company will investigate the claim and, if the claim is valid, pay damages to the injured party up to the bond amount. The surety will hold the broker responsible for the reimbursement of the claim, plus any additional fees incurred by the surety.
The cost of this bond, like many surety bonds, is primarily dependent upon your credit. The surety company will assign you a premium rate based on your credit. Your premium rate will be a percentage, which is then multiplied by the bond amount to determine your premium—how much you pay. At EZ Surety Bonds, we’ve seen this particular bond quoted for as low as $1,125 for those with excellent credit.
The obligee for this bond, aka the entity that requires you to get a surety bond, is the Georgia Department of Banking and Finance. We’ve listed their contact information below:
Department of Banking and Finance
2990 Brandywine Road, Suite 200
Atlanta, GA 30341-5565
Phone: (770) 986-1633 or
Toll-Free: (888) 986-1633
Email: dbfmort@dbf.state.ga.us
Getting a surety bond is a single licensing requirement. But what are the other licensing steps? In short, you must:
It’s important to mention that mortgage licensing applications are processed through the Nationwide Mortgage Licensing System & Registry (NMLS).
This process can be confusing and we know this is only a brief list of the steps you must take to become a mortgage broker. If you want a more in-depth analysis, read this post on how to get a mortgage broker license in Georgia.
We pride ourselves on making surety bonding simple. To get started, fill out the application on our website and we’ll get back to you with a free quote within 24 hours. If you have any questions along the way, please reach out to our agents at info@ezsuretybonds.com or call us at 1-866-546-4605. We’re here to help!
What are the requirements to be a mortgage broker in Georgia?
The minimum requirements to become a mortgage broker are
Who is required to get a mortgage broker bond in Georgia?
Any individual who wishes to become a licensed mortgage broker in Georgia must get a mortgage broker bond. As defined by the Official Code of Georgia Annotated, “a ‘mortgage broker’ is a person or company who directly or indirectly solicits, processes, places, or negotiates mortgage loans for others, offers to perform such services for others, or closes loans in the mortgage broker’s name using funding provided by others.” O.C.G.A. § 7-1-1000(19).
What is the required surety bond coverage for a Georgia mortgage broker bond?
The required bond amount for a mortgage broker bond in Georgia is $150,000. The mortgage lender bond has a higher required bond amount of $250,000.
After I purchase my bond, what do I do?
The mortgage broker bond is electronically filed with the Nationwide Mortgage Licensing System & Registry (NMLS). Once you’ve purchased your bond, associate yourself with the Warnock Agency in the NMLS using our National Producer Number (NPN) #8251056 and we’ll file your bond electronically with the NMLS for you.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
