Florida Mortgage Broker Bond
Florida mortgage brokers provide invaluable services to their clients when they want to buy a house. Mortgage brokers help home buyers find lenders offering the best interest rate and the lowest fees. They negotiate with lenders to connect homebuyers with problematic credit with lenders who will help them get into a home. As a result, mortgage brokers wield tremendous influence over financial matters and decisions for their clients. And Florida mortgage broker bonds provide clients the peace of mind that their broker will always work in their best interest.
What is a Florida Mortgage Broker Bond?
Florida mortgage broker bonds are a type of surety bond that holds the bonded broker financially accountable for unlawful behavior that negatively impacts a mortgage seeker. The bond essentially guarantees the mortgage broker's clientele that the broker will always respect their fiduciary responsibility to the client. The surety bond provides a mechanism for a wronged client to seek compensation. When that happens, someone may file a claim for damages against the bond, which the mortgage broker must pay as long as the claim proves true.
How Does a Florida Mortgage Broker Surety Bond Work?
Buying a home can be scary and involves far more money than most people have. The Florida mortgage surety bond provides the homebuyer with a sense of security, ensuring the mortgage broker abides by their fiduciary responsibility to act in the client's best interest.
When someone files a claim against a Florida mortgage surety bond, the agency that issues the surety bond investigates whether the mortgage broker is, in fact, responsible. The surety does not automatically find in favor of the client. They must weed out claims from disappointed or unrealistic clients, and they do. As long as the claim is valid, the surety agency settles it immediately by making payment from the bond up to its full value. Then, the surety agency collects the claim amount, plus interest and fees, from the bonded broker who accepted the liability under the surety bond agreement.
By holding the bonded party financially responsible, surety bonds like this one discourage negative behaviors and work to regulate the Florida mortgage industry as a whole.
The Parties to a Florida Mortgage Broker Bond
A Florida mortgage broker bond is a surety bond that involves three essential parties:
- The principal is the mortgage broker who obtains the surety bond and agrees to pay for claims.
- The obligee is the broker's client who files a claim against the surety bond seeking damages.
- The surety is the insurance agency that issues the bond to the principal and guarantees payments to the obligee.
The surety thoroughly investigates all claims against a Florida mortgage broker bond before any money is paid out from the bond. If the surety finds a claim is valid, they pay the damages from the bond, which must be repaid by the principal. Because a Florida mortgage broker bond imparts comfort and confidence to homebuyers, many brokers advertise their bonded status. It speaks to the broker's professional values and standards.
Florida Mortgage Broker Bond Requirements
Acquiring a Florida mortgage broker bond has simple bond requirements. You will need to supply the surety agency with these documents to obtain a surety bond:
- A completed bond application
- A financial statement.
- Any additional documents that may be requested
Based on your application, the surety will quote the bond cost. Then, pay that cost to activate the bond for 12 months, typically.
*Note: Florida law has changed, so brokers are no longer required to be bonded to get licensed to operate in the state.
How Much Does a Florida Mortgage Broker Bond Cost?
A Florida mortgage broker bond costs a small percentage of the total bond value. Typically, the cost ranges from 1% to 5%, depending upon the broker's credit score and financial history. The percentage charged increases as the surety company's risk rises. Although bond applicants with solid credit scores get preferentially low costs, those with poor credit are not automatically disqualified.
Viking Bond Service is committed to helping more people get affordable surety bonds despite bad credit. We offer a bad credit surety bond program specifically for those with problematic credit, with scores south of 700 or a bankruptcy on their record. While we cannot guarantee that every applicant gets bonded, we will do everything we can to make your bonding possible. Further, we will do our best to keep your Florida mortgage broker bond premiums low.
Apply for Your Florida Mortgage Broker Bond Today
Ready to get a Florida mortgage broker bond quote in as little as 24 hours? Complete our simple online bond application. Want more information first? Feel free to contact us online or call us at 1-888-2-SURETY (1-888-278-7389). We look forward to becoming your surety partner and will guide you every step of the way.
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