What are Nevada 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 Nevada Division of Mortgage Lending
- A surety company
The bonds provide a guarantee that licensed finance professionals conduct business in compliance with the regulations set forth in the Nevada Revised Statutes
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 Nevada finance & mortgage broker bonds cost?
The Nevada Division of Mortgage Lending requires mortgage brokers to post a surety bond as part of the licensing process. The required bond amount is based on the broker’s annual loan volume:
- Less than $20,000,000 in loans: $50,000 surety bond
- More than $20,000,000 in loans: $75,000 surety bond
The bond requirements for other finance bonds in Nevada are as follows:
- Nevada Mortgage Banker Bond: $50,000 and upwards
- Nevada Mortgage Servicer Bond: $100,000 and upwards
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 Nevada finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker bonds in Nevada for premiums as low as $375.
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 Nevada 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 Nevada?
To become a licensed mortgage broker in Nevada, you must meet the following licensing requirements:
- Complete the criminal background check
- Submit your financial statements
- Provide credit reports for all controlling persons
- Provide proof of 2 years experience in mortgage lending
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the appropriate surety bond
- Pay all license and application fees
For information on obtaining other finance licenses in Nevada, you can visit the NMLS Resource Center.