Georgia Finance and 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 Georgia Department of Banking and Finance
• A surety company

The bonds provide a guarantee that licensed finance professionals conduct business in compliance with the regulations set forth in the Georgia Annotated Code

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.

The Georgia Department of Banking and Finance requires mortgage brokers to post a $150,000 surety bond as part of the licensing process. Mortgage lenders are required to post a $250,000 bond. The bond requirements for other finance bonds in Georgia are as follows:

• State of Georgia Securities Business Regulation Bond: $25,000
• State of Georgia Insurance Premium Finance Company Bond: $25,000
• State of Georgia Money Transmitter or Check Seller Bond: $100,000 and upwards
• State of Georgia Securities Dealer Bond: $25,000
• State of Georgia Securities Salesman Bond: $2,500

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 Georgia finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued $150,000 mortgage broker bonds in Georgia for premiums as low as $1,500.

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 Georgia mortgage broker bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.

Under the Georgia Residential Mortgage Act (GRMA), you must be licensed to broker mortgage loans on behalf of others. You can become a licensed mortgage broker by meeting the following licensing requirements:

1. Complete the criminal background check
2. Submit your personal financial statements
3. Provide a copy of your credit report
4. Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
5. Post the $150,000 surety bond
6. Pay the $750 licensing fees, $100 processing fee, and $36.25 background check fee

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