Arizona Mortgage Broker Bond
Before you become a mortgage broker you need a license. One of the Arizona mortgage brokers license requirements says you need a specific type of surety bond called an Arizona mortgage broker bond. Learn how this surety bond works before you complete this important license requirement.
What is an Arizona Mortgage Broker Bond?
Mortgage broker bonds required in Arizona and all other states hold a mortgage broker accountable for behavior that violates state law. The Arizona Department of Financial Institutions (the state agency that regulates mortgage brokers) may file a claim for damages against the mortgage broker bond, and the mortgage broker must pay for those claims.
How does an Arizona Mortgage Broker Bond work?
When the Arizona Department of Financial Institutions believes a mortgage broker has violated the law, they will assess the damages and file a claim for that amount with the surety agency that backs the mortgage broker bond. The surety will then investigate the claim to verify that everything is true. Valid claims receive an automatic settlement. The final step is for the bond holder (eg. the mortgage broker) to pay the surety back the amount of the settlement. A surety agency acts as an intermediary to ensure that valid claims get settled, but the bond holder always has financial liability for those claims.
What is the purpose of an Arizona Mortgage Broker Bond?
Mortgage broker bonds help to regulate the mortgage broker industry and keep bad actors out. Anyone who can't obtain a bond can't become a mortgage broker. And anyone who breaks state laws governing mortgage brokers can be held accountable. All states use mortgage broker bond requirements to encourage upstanding behavior from everyone in the industry.
Who needs an Arizona Mortgage Broker Surety Bond?
You need a mortgage broker bond in Arizona if you also need a mortgage broker license in Arizona. Effectively, all mortgage brokers need a license and a bond. Contact Viking Bond Service to explore if Arizona mortgage broker bond requirements apply to you.
Who are the parties involved in an Arizona Mortgage Broker Bond?
- Principal - The mortgage broker. The principal obtains the bond and accepts liability for claims.
- Obligee - The Arizona Department of Financial Institutions. The obligee sets the bond requirements and may file claims against the bond.
- Surety - The surety bond agency. The surety bonds the principal and collects debts from the principal for any amount paid in claims to the obligee
How to get a Arizona Mortgage Broker Bond
The process starts with an application. Prepare to complete a standard bond application, submit to a credit check, and provide a copy of the bond requirements. You may also need to provide additional documentation at the surety's discretion. The surety will then quote you a price for the bond. Bond costs are based on two factors. First, the cost will be a small percentage of the bond's total size. Second, the exact percentage will depend on your credit. People with challenged credit should expect to have higher bond costs. But they shouldn't think it's impossible or extremely expensive to get the bond they need. Thanks to a special program from Viking Bond Service, more people get approved for bonds at better rates.
Why you should get your Arizona Mortgage Broker Bond from Viking Bond Service
You will need a surety bond from your first day as a mortgage broker to your last. Don't just find a surety agency to work with, find a bonding partner you can trust with everything for years to come. Viking Bond Service provides that trust to mortgage brokers all across Arizona and all across the country. Take advantage of our experience, expertise, and abundant resources to make bonding a simple and stress-free process. We are eager to earn your business.
Request a quote for an Arizona Mortgage Broker Surety Bond
We are here to help at all times. Request a quote at your convenience, and expect to get a response in as little as 24 hours. To get more information, contact us or call 1-888-278-7389.
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