Mortgage And Finance Bonds

Learn more about Mortgage And Finance Bonds

What is a mortgage broker bond?

Mortgage broker bonds are legally binding agreements between three parties: finance professionals (such as mortgage brokers or lenders), the government agency responsible for regulating mortgage loan activity in the local jurisdiction, and a surety company.

The government agency is the Obligee and establishes the obligations that the licensed mortgage broker (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the broker or lender.

Why do you need a mortgage broker bond?

Mortgage broker and finance bonds are required for eligibility to operate as a mortgage broker, mortgage lender, or mortgage loan originator. The Nationwide Multistate Licensing System (NMLS) handles the licensing requirements and bond filing in most states.

When the surety company issues the bond, they provide the government agency a guarantee that the customers of a licensed mortgage broker or finance lender will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the obligee.

If the mortgage professional fails to meet the obligations set out by the government agency, the surety will pay out damages up to the bond amount. The mortgage professional is liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.

How much does a mortgage broker bond cost?

Mortgage broker surety bond costs vary depending on the total bond amount and the premium rate. The regulating agency sets the required bond amount and the surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.

Premium rates for mortgage broker bonds typically range between 0.75% and 5% of the total bond amount. During the application process, the surety company evaluates your credit score, financial statements, industry experience, and licensing history. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a mortgage broker bond. EZSurety can still offer competitive rates to individuals with low credit scores or other financial issues.

Below are the lowest premiums EZ Surety has been able to issue for mortgage broker bonds in popular states.

  • EZ Surety has issued mortgage broker bonds in the State of Arizona for premiums as low as $100.
  • EZ Surety has issued mortgage broker bonds in the State of Michigan for premiums as low as $375.
  • EZ Surety has issued mortgage broker bonds in the State of Nevada for premiums as low as $375.

Mortgage And Finance Bonds for all states

Alabama Finance and Mortgage Broker Bonds, Arizona Mortgage And Finance Bonds, Arkansas Finance and Mortgage Broker Bonds, California Finance and Mortgage Broker Bonds, Colorado Finance and Mortgage Broker Bonds, Connecticut Finance and Mortgage Broker Bonds, Delaware Finance and Mortgage Broker Bonds, District of Columbia Finance and Mortgage Broker Bonds, Florida Finance and Mortgage Broker Bonds, Georgia Finance and Mortgage Broker Bonds, Illinois Finance and Mortgage Broker Bonds, Indiana Finance and Mortgage Broker Bonds, Iowa Finance and Mortgage Broker Bonds, Kentucky Finance and Mortgage Broker Bonds, Louisiana Finance and Mortgage Broker Bonds, Maryland Finance and Mortgage Broker Bonds, Massachusetts Finance and Mortgage Broker Bonds, Michigan Finance and Mortgage Broker Bonds, Minnesota Finance and Mortgage Broker Bonds, Mississippi Finance and Mortgage Broker Bonds, Missouri Finance and Mortgage Broker Bonds, Nebraska Finance and Mortgage Broker Bonds, Nevada Finance and Mortgage Broker Bonds, New Hampshire Finance and Mortgage Broker Bonds, New Jersey Finance and Mortgage Broker Bonds, New York Finance and Mortgage Broker Bonds, North Carolina Finance and Mortgage Broker Bonds, Oklahoma Mortgage And Finance Bonds, Rhode Island Finance and Mortgage Broker Bonds, South Carolina Finance and Mortgage Broker Bonds, Tennessee Finance and Mortgage Broker Bonds, Texas Finance and Mortgage Broker Bonds, US Mortgage And Finance Bonds, Utah Finance and Mortgage Broker Bonds, Vermont Finance and Mortgage Broker Bonds, Washington Finance and Mortgage Broker Bonds, West Virginia Finance and Mortgage Broker Bonds, Wisconsin Mortgage And Finance Bonds, Wyoming Finance and Mortgage Broker Bonds

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