What are West Virginia 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 West Virginia Division 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 West Virginia finance & mortgage broker bonds cost?
The Division of Financial Institutions requires mortgage loan brokers to post a surety bond as part of the licensing process. The required bond amount depends on the broker’s annual mortgage loan volume during the prior year:
- Less than $3 million in mortgage loans: $50,000 bond
- Between $3 million and $10 million in mortgage loans: $75,000 bond
- More than $10 million in mortgage loans: $100,000 bond
The required bond costs for other finance bonds in West Virginia are as follows:
- West Virginia Mortgage Lender License Bond: $100,000 and upwards
- West Virginia Money Transmitter Bond: $100,000 and upwards
- West Virginia Fintech Bond: Varies
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 West Virginia finance bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker surety bonds in West Virginia for premiums as low as $100.
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 West Virginia finance bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
How to get your mortgage broker license in West Virginia?
To become a licensed mortgage loan broker in West Virginia, you must meet the following licensing requirements:
- Complete the criminal background check
- Submit your current financial statements
- Provide credit reports for all controlling persons
- Provide a Certificate of Authority issued by the Secretary of State
- Provide a copy of your business plan
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Pay $450 in licensing fees and a $36.25 background check fee
For information on obtaining other finance licenses in the State of West Virginia, you can visit the NMLS Resource Center.