What are Rhode Island finance & mortgage broker bonds?
Finance and mortgage broker bonds are legally binding agreements between three parties:
- Finance professionals such as mortgage brokers, finance lenders, and mortgage loan originators
- A government agency like the Rhode Island Department of Business Regulation
- A surety company
The bonds provide a guarantee that licensed finance professionals conduct business in compliance with the regulations set forth in the Rhode Island General Laws.
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 Rhode Island finance & mortgage broker bonds cost?
The Rhode Island Department of Business Regulation requires mortgage loan brokers to post a $20,000 surety bond as part of the licensing process.
The required bond costs for other finance bonds in Rhode Island are as follows:
- Rhode Island Lender License Bond: $50,000
- Rhode Island Currency Transmitter Bond: $50,000
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 Rhode Island finance and mortgage broker bonds typically cost between 1% and 5% of the total bond amount.
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 Rhode Island finance bond. EZSurety still offers competitive rates to individuals with low credit scores or other financial issues.
How to get your mortgage broker license in Rhode Island?
To become a licensed mortgage loan broker in Rhode Island, you must meet the following licensing requirements:
- Complete the criminal background check
- Upload current financial statements
- Submit your application through the Nationwide Multistate Licensing System & Registry (NMLS)
- Post the appropriate surety bond
- Pay $925 in licensing fees and $36.25 per background check
For information on obtaining other finance licenses in the State of Rhode Island, you can visit the NMLS Resource Center.