What are Missouri 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 Missouri Division of Finance
- A surety company
The bonds provide a guarantee that licensed finance professionals conduct business in compliance with the regulations set forth in the Missouri 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 Missouri finance & mortgage broker bonds cost?
The Missouri Division of Finance requires residential mortgage loan brokers to post a surety bond worth at least $50,000 as part of the licensing process. The bond requirements for other finance bonds in Missouri are as follows:
- Missouri Money Transmitter Bond: $100,000
- Missouri Consumer Credit Lenders Bond: $100,000
- Missouri Division of Finance Title Loan Lender Bond: $20,000
- Missouri Debt Adjuster Bond: $100,000
- Missouri Check Issuer 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 the Missouri finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage lender bonds in Missouri for premiums as low as $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 Missouri 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 Missouri?
To become a licensed mortgage broker in Missouri, you must meet the following licensing requirements:
- Complete the criminal background check
- Submit your personal financial statements
- Provide credit reports for all controlling persons
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the appropriate surety bond
- Pay $1,000 in licensing fees and a $36.26 background check fee
For information on obtaining other finance licenses in Missouri, you can visit the NMLS Resource Center.