What are Indiana 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 Indiana Department of Financial Institutions.
- 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 Indiana finance & mortgage broker bonds cost?
The Indiana Secretary of State requires mortgage loan brokers to post a $60,000 surety bond as part of the licensing process. The bond requirements for other finance bonds in Indiana are as follows:
- Indiana Money Transmitter Bond: $300,000
- Indiana Mortgage Lender Bond: $100,000
- Indiana Debt Management Company Bond: $50,000
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. Premium rates for Indiana finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker bonds in Indiana for premiums as low as $450.
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 an Indiana 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 Indiana?
Indiana mortgage licenses are issued by two different agencies: the Secretary of State and the Indiana Department of Financial Institutions. The Secretary of State is responsible for licensing mortgage loan brokers.
You can obtain your Indiana mortgage broker license by completing the following steps:
- Complete the criminal background check
- Submit your financial statements
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the $60,000 surety bond
- Pay $300 in licensing fees and a $36.25 background check fee
For information on obtaining other finance licenses in Indiana, you can visit the NMLS Resource Center.