Mortgage Broker Bonds

mortgage broker bond

Shopping for a mortgage broker bond can often seem like a huge inconvenience and a waste of time, but you may be surprised to learn just how easy it is to find a bond. You might also be pleasantly surprised to learn that they can help your business grow!

Who needs a mortgage broker bond?

If you’re currently working as a mortgage broker or in the process of getting your broker license you’ll most likely need a bond to legally work as a broker. Although mortgage broker bonds are a mandatory part of the licensing process throughout the US, the actual bond requirements vary by state. One important thing to remember is that a bond will only cover you for one specific state, this means that you should speak to a bonding company who is licensed in that state to help you secure the right bond not only in your home state but also any additional states you will be operating in.

What are mortgage broker bonds?

Mortgage broker bonds are surety bonds that mortgage brokers must acquire to apply for a broker license. A surety bond provides consumers with a route for financial compensation should the broker act unlawfully when acting on their behalf. They’re also a way for the state to make a claim against the business should they fail to follow all rules and regulations.

Bonds protect consumers not the bonded business

One of the most important things to understand about mortgage broker surety bonds is that they are designed to protect consumers who use the business, not the business itself. A surety bond is not insurance, it’s actually more like a line of credit where the surety agrees to pay claims made against the surety bond up to the bonded amount. As the bonded business you’ll be required to repay all of the money the surety bond has spent to cover claims made against your bond.

Bonds can help your business grow!

To apply for a bond a broker must have a strong financial history and evidence of their expertise in the industry. This means that being a bonded mortgage broker is a sign to consumers that you’re qualified and can handle their mortgage applications. So how can bonds help your business? Bonds help build trust with potential clients, helping you gain new customers and grow your business!

Contact Viking Bond Service online or on the phone to find an affordable surety bond, today!