A Mortgage Broker Bond is a commercial license surety bond that could be a required condition of gaining a license to operate as a mortgage broker.
Mortgage Broker Bonds involve three parties:
In many states, mortgage brokers need to purchase a surety bond in order to become legally licensed. Usually, you are required to hold a Mortgage Broker Bond for as long as you maintain your mortgage broker license.
Laws that regulate mortgage professionals vary by state. Some states have bonding requirements that apply to all mortgage professionals while others have specific requirements that vary by profession. Contact a Viking Bonds agent and we will help you understand your mortgage broker surety bond requirements.
State laws require mortgage broker surety bonds to protect the state and public against potential losses resulting from actions by the mortgage broker that violate state laws and regulations.
In the case of wrongful action on the part of the mortgage broker, the state or the mortgage brokers' clients can make a claim against the Mortgage Broker Surety Bond to seek financial reparations.
The amount of the Mortgage Broker Bond depends on the state, on the broker's credit, and on the annual volume of loans closed by the broker. In most states there is a legal minimum amount, with increases applied based on the broker's particular credit and loan history. Your bond amount could range anywhere from $10,000 to $100,000, depending on your profile and the state in which you acquire your bond.
The cost of a Mortgage Broker Bond is calculated as a percentage of the bond amount, depending on the broker's credit. Usually, the cost is around 1-3% of the total bond amount. If you have bad credit, you may still be able to secure a Mortgage Broker Bond, but you will likely have to pay a higher percentage.
Credit score is the most important factor in securing a Mortgage Broker Bond.
Contact us and submit a simple application, and you can receive your Mortgage Broker Bond quote quickly, usually within 24 hours.
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