Nebraska Finance and Mortgage Broker Bonds

What you need to know about Nebraska Finance and Mortgage Broker Bonds

Nebraska Finance and Mortgage Broker Bonds

What are Nebraska finance & mortgage broker bonds?

Finance and mortgage broker bonds are legally binding agreements between three parties:

The bonds provide a guarantee that licensed finance professionals conduct business in compliance with license regulations like those set forth in the Nebraska Residential Mortgage Licensing 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 Nebraska finance & mortgage broker bonds cost?

The Nebraska Department of Banking and Finance classifies all mortgage brokers, lenders, and servicers as mortgage bankers. All mortgage bankers are required to post a $100,000 surety bond as part of the licensing process. The bond requirements for other finance bonds in Nebraska are as follows:

  • Nebraska Money Transmitter Bond: $100,000 and upwards
  • Nebraska Investment Adviser Bond: $25,000
  • Nebraska Sales Finance Bond: $50,000
  • Nebraska Installment Loan Bond: $50,000
  • Nebraska Escrow Agent Bond: $100,000
  • Nebraska Debt Management 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 Nebraska finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount. EZSurety has issued mortgage broker bonds in Nebraska 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 Nebraska 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 Nebraska?

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

  1. Complete the criminal background check
  2. Submit your personal financial statements
  3. Provide credit reports for all controlling persons
  4. Provide copies of business formation documents
  5. Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
  6. Post the appropriate surety bond
  7. Pay the $200 application fee and $100 processing fee

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