What are Wyoming finance & mortgage broker bonds?
Finance and mortgage broker bonds are legally binding agreements between three parties:
- Finance professionals such as mortgage brokers, finance lenders, and mortgage loan originators
- A government agency like the State of Wyoming Department of Audit Division of Banking
- A surety company
The bonds provide a guarantee that licensed finance professionals conduct business in compliance with the regulations set forth in the Wyoming Banking 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 Wyoming finance & mortgage broker bonds cost?
The Wyoming Department of Audit Division of Banking requires mortgage loan brokers to post a $25,000 surety bond as part of the licensing process.
The required bond costs for other finance bonds in Wyoming are as follows:
- Wyoming Supervised Lender License Bond: $25,000 and upwards
- Wyoming Collection Agency License Bond: $10,000 and upwards
- Wyoming Money Transmitter Bond: Up to $500,000
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 Wyoming 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 Wyoming 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 Wyoming?
To become a licensed mortgage loan broker in Wyoming, you must meet the following licensing requirements:
- Complete the criminal background check
- Upload audited financial statements
- Provide copies of credit reports for all controlling persons
- Submit a Certificate of Authority issued by the Secretary of State’s Office
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the appropriate surety bond
- Pay $500 in licensing fees and $36.25 per background check
For information on obtaining other finance licenses in the State of Wyoming, you can visit the NMLS Resource Center.