What are Mississippi 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 Mississippi Department of Banking and Consumer Finance
- A surety company
The bonds provide a guarantee that licensed finance professionals conduct business in compliance with license regulations like those set forth in the Mississippi S.A.F.E. Mortgage Act.
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 Mississippi finance & mortgage broker bonds cost?
The Mississippi Department of Banking and Consumer Finance requires mortgage brokers to post a $25,000 surety bond as part of the licensing process. The bond requirements for other finance bonds in Mississippi are as follows:
- Mississippi Mortgage Lender Bond: $150,000
- Mississippi Cash Checkers Bond: $10,000
- Mississippi Consumer Loan Broker Bond: $25,000
- Mississippi Money Transmitter Bond: $25,000 to $500,000
- Mississippi Small Loan Broker Bond: $1,000
- Mississippi Payday Lender Bond: $10,000
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 Mississippi finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker bonds in Mississippi for premiums as low as $250.
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 Mississippi 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 Mississippi?
To become a licensed mortgage broker in Mississippi, you must meet the following licensing requirements:
- Complete the criminal background check
- Submit your personal financial statements
- Provide credit reports for all control persons
- Provide proof of two years of mortgage lending experience
- Complete the prelicensing education courses
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the appropriate surety bond
- Pay $1,601 in total license fees
For information on obtaining other finance licenses in Mississippi, you can visit the NMLS Resource Center.