What are Delaware finance & mortgage broker bonds?
Finance and mortgage broker bonds are legally binding agreements between three parties:
- Finance professionals such as mortgage brokers and finance lenders
- A government agency like the Office of the State Bank Commissioner
- A surety company
If the finance professional fails to comply with the regulations, the surety company will pay out financial losses to damaged parties up to the full bond amount. The finance professional is liable to reimburse the surety for any damages paid under the bond.
How much do Delaware finance & mortgage broker bonds cost?
The State of Delaware requires mortgage brokers to post a $25,000 surety bond as part of the licensing process. The bond requirements for other finance bonds in Delaware are as follows:
- Delaware Money Transmitter Bond: $25,000 and upwards
- Delaware Lender License Bond: $50,000 and upwards
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond cost you pay as the premium. Premium rates for Delaware finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount.
During the application process, the surety company evaluates your personal credit, 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 Delaware mortgage broker bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
How to get your mortgage broker license in Delaware?
You can become a licensed mortgage broker in Delaware by meeting the following licensing requirements:
- Complete a criminal background check
- Submit your financial statements
- Provide credit reports for all controlling persons
- Provide a Certificate of Authority
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the $25,000 surety bond
- Pay the $850 in licensing fees
For information on obtaining other finance licenses in Delaware, you can visit the NMLS Resource Center.