Connecticut Finance and Mortgage Broker Bonds

What are Connecticut 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 State of Connecticut Department 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 Connecticut General 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 Connecticut finance & mortgage broker bonds cost?

The Connecticut Department of Banking requires mortgage brokers to post a $50,000 surety bond as part of the licensing process. The bond requirements for other finance bonds in Connecticut are as follows:

• Connecticut Money Transmission Bond: $300,000 and upwards
• Connecticut 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 Connecticut finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker bonds in Connecticut for premiums as low as $750.

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 Connecticut 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 Connecticut?

To become a licensed mortgage broker in Connecticut, you must meet the following licensing requirements:

1. Complete the criminal background check
2. Submit your financial statements
3. Provide credit reports for all controlling persons
4. Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
5. Post the appropriate surety bond
6. Pay $600 in licensing fees and a $36.25 background check fee

For information on obtaining other finance licenses in Connecticut, you can visit the NMLS Resource Center.