Arkansas Mortgage Broker Bond
Mortgage brokers help people across Arkansas find and secure home loans. This can be a lucrative career path with plenty of room for growth. In order to work legally in the state, however, you need to get an Arkansas mortgage broker license. Getting a mortgage broker surety bond is one of the license requirements, and you won't be issued a license until you prove you have the required bond. This page will walk through everything you should know.
How Does an Arkansas Mortgage Broker Bond Work?
All different surety bond types, including mortgage broker bonds, work in basically the same way. They make the bondholder (called the principal) liable for damages caused by illegal or unethical behavior The victims of those damages (called the obligee) may file a claim for compensation against the surety bond. The principal must pay for all valid claims, but if they can't or won't, the company that issues and backs the bond (called the surety), guarantees a full settlement payment. The principal must then repay that same amount, with interest and fees, back to the surety or face further penalties.
If an Arkansas mortgage broker violates state laws that apply to lending, any clients who lost money may file claims for damages against the bond. Since the mortgage broker is liable for paying all those claims – either to the obligee or the surety – the bond creates an incentive to follow the law. And since the bond guarantees payment to the obligee, either from the principal or the surety, it helps build trust between a broker and a borrower.
Arkansas Mortgage Broker Bond Requirements
Arkansas mortgage brokers must have a bond with a minimum of $100,000 in coverage before the state will grant them a license to work legally. There are stiff penalties for working without a license, making it vital to get the right kind of bond. Viking Bond Service can streamline that process for you.
How Do You Get an Arkansas Mortgage Broker Bond?
The easiest way to meet surety bond requirements is to work with a surety agency. They will find multiple bond offers to ensure you get a competitive rate and fast bond coverage. After choosing a surety agency, you will apply for a bond with the following information:
- A complete bond application
- A credit check
- Additional documents as requested (financial statement, bond requirements, etc.)
You will receive a quote for the cost of the surety bond based on your application. Coverage begins as soon as you pay the premium.
The Cost of an Arkansas Mortgage Broker Bond
Even though Arkansas mortgage surety bonds must have $100,000 in coverage, the cost for the bond is just a small percentage of that amount. It can even be under $1,000 for people with solid credit. Cost will be higher for people with credit scores below 700 or a spotty financial history, but Viking Bond Service offers a special program to make bonding easier and more affordable for people with credit issues.
Renewing an Arkansas Mortgage Broker Bond
Typically, bond coverage lasts for 12 months. It must be renewed after that point because lapses in bond coverage can make an Arkansas mortgage broker's license invalid. Renewal involves a credit check, followed by an adjusted premium price based on changes to credit standing since the last renewal. That means premiums can go up or down annually.
Get Arkansas Mortgage Broker Bonds From Viking Bond Service
Don't stress over getting a surety bond, and be sure to avoid paying more than necessary. Viking Bond Service saves you time and money thanks to our improved bonding process and the competitive offers we find for every client. Need a bond now? Request a quote at any time, and expect a response in under 24 hours. Have more questions? Contact us or call 1-888-2-SURETY (1-888-278-7389).
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