Mortgage Broker Bond (NMLS) Information
Mortgage Brokers are licensed real estate financing experts that help people find and negotiate financing terms for their mortgage loans. Many states require that mortgage brokers obtain a Mortgage Broker Bond as part of their license. Surety bonds are required to ensure compliance with state regulations governing this line of business.WHAT IS A MORTGAGE BROKER BOND?Mortgage Broker Bonds are commercial license surety bonds. Mortgage Broker Bonds, like all surety bonds, involve three parties: One party is the principal, in this case the mortgage broker, who purchases the bond to prove that their business is trustworthy. Another is the obligee. In this case the obligee can be the state, or the mortgage broker's clients, who can make claims against the bond if the mortgage broker violates provisions of the bond. The third party in this agreement is the surety or an underwriter who issues the bond to the mortgage broker.
How Does This Bond Work?
Mortgage broker bonds are required by states to protect consumers that are in the process of obtaining mortgages. Mortgage broker surety bonds are also known as Loan Broker Bonds, Mortgage Loan Originator, and Residential Mortgage Originator Bond. Surety bond amount requirements vary based on personal credit. Our agency has a variety of programs designed to get all types of Mortgage Brokers approved at excellent rates. Call us to get more information or apply online for your free quote.
Our agency offers a variety of programs designed to help all types of mortgage bonds get approved quickly, and at excellent rates, in all 50 states. Unlike other agencies who may sell all kinds of insurance, we specialize exclusively in surety bonds. This not only allows us to grow our expertise, but it also provides us the opportunity to give your business the best possible bonding experience.
- 100% Secure Online Application
- Lowest Rates
- Free Quotes
- Approval Rate Nearly 100% (even for the less than perfect credit applicants)
First, you’ll need to contact the specific state department that oversees mortgage agencies about your desire to conduct business in that state. Some state’s offer checklists online, which can be very helpful. In addition to submitting an application to become a registered or licensed mortgage broker, most states require a surety bond be posted to guarantee compliance with their mortgage regulations. Getting bonded with All Commercial Surety is simple. Once your mortgage broker bond has been issued, you’ll submit a signed copy of the original bond to the state to be filed with your license. Frequently asked questions about Mortgage Broker Surety Bonds:
How Much Does a Mortgage Broker Bond Cost?
Annual premium amounts are determined based on owner personal credit. Owners with stellar credit may be eligible for standard market rates, which range from 1% to 3% of the bond amount. If the owner has a low credit score, or past due items on their credit report, annual premium typically ranges between 5% to 15% of the bond amount. For most states, our high risk rate does not exceed 7.5%.
How Do I Get a Mortgage Broker Bond?
The first step is to apply to get your free quote. Once you’ve been approved for a mortgage broker bond, your agent will provide you with the bond amount due, along with an agreement with the surety. Once you’ve paid for your bond, and provided a signed copy of the indemnity agreement, your Mortgage Broker Bond will be mailed out to you.
Can I Get Approved for a Mortgage Broker Bond if I Have Bad Credit?
Yes. While many sureties only offer quotes to customers with stellar credit, we have a variety of mortgage agency bond programs that allows us to approve over 99% of mortgage brokers through our online application. Your annual premium will depend on your individual credit profile, but we’re able to offer very aggressive rates to meet your needs.
Will My Mortgage Broker Bond Work for Multiple States?
No. You'll need to get a separate bond for each state that you will be conducting business in. All 50 states have their own bond requirements for mortgage brokers, and therefore you'll need to make sure to comply with each one's respective bond regulations.
How to Reduce the Cost of Your Bond Premium
If you would like to reduce the amount of your bond premium there are a few simple steps you can take.
- Ensure that your credit report is accurate when submitting your bond application
- Work to improve your personal credit score
- Add a co-signer to your bond
Call us for More Information or Apply Online for Your Free Quote Today!