If you work or plan to work as a mortgage broker in the State of Illinois, you will need to have a surety bond throughout your career. Read on to learn everything you need to know about the Illinois mortgage broker bond.

What is an Illinois Mortgage Broker Bond?

This type of surety bond holds a mortgage broker accountable for breaches of Illinois state law and codes of conduct applicable to mortgage brokers. The bond makes the mortgage broker financially liable for damages caused by their illegal behavior.

How does an Illinois Mortgage Broker Bond work?

When a mortgage broker does something illegal, officials from The State of Illinois Department of Financial and Professional Regulation, Division of Banking, Residential Mortgage Board (the agency that regulates mortgage brokers) may file a claim against the bond. The surety agency that backs the bond guarantees payment for all valid claims. However, the surety agency does not accept financial liability for the bond holder's behavior. When the surety settles a claims, the bond holder (eg. the mortgage broker) must pay the surety back the entire amount of the claim plus interest and fees.

What is the purpose of an Illinois Mortgage Broker Bond?

Since the Illinois residential mortgage license bond holds mortgage brokers financially liable for illegal behavior, the bond acts as a deterrent for that behavior. And since the surety agency guarantees payment for valid claims, the bond also provides a streamlined mechanism for the state to recover damages and sanction mortgage brokers. Surety bonds are a part of the Illinois mortgage broker license requirements because they help to regulate the industry and promote lawful behavior.

Who needs an Illinois Mortgage Broker Bond?

Anyone who needs an Illinois mortgage broker license will also need a surety bond. You must show proof of having a bond before Illinois will grant you a license. You must also show proof of having an active bond in good standing to renew your mortgage broker license in Illinois. If you're unsure whether you need a bond, contact Viking Bond Service for free help.

Who are the parties involved in an Illinois Mortgage Broker Bond?

You are one of three parties involved in the surety bond agreement:

Principal - The mortgage broker who obtains the bond and pays for claims.
Obligee - The Illinois agency that regulates mortgage brokers. The obligee may file claims with the surety for damages caused by the principal.
Surety - The agency that bonds the principal and settles claims with the obligee. The principal must pay the surety back for all settled claims.

How to get an Illinois Mortgage Broker Bond

Obtaining one of these bonds starts with an application process. You will need to complete a standard bond application, turn over a copy of the exact bond requirements, and agree to a credit check. The surety may also ask for additional documentation. Underwriters will use your application documents to assess your credit risk and quote you a bond price. The cost of bonds is typically a small percentage of the amount the bond covers - eg. the maximum amount the surety agrees to pay to settle claims. Bad credit leads to higher bond premiums. Fortunately, Viking Bond Service offers a special program to help people with a credit score below 700 or a blemish like a bankruptcy on their record get approved for bonds at affordable rates.

Why you should get your Illinois Mortgage Broker Bond from Viking Bond Service

Viking Bond Service works with mortgage brokers across Illinois and throughout the country. We are a leading surety agency with the resources to make bonding easy, fast, and affordable. You will need a bond for as long as you're a mortgage broker. Why wait to partner with a surety agency that can handle all your bonding needs?

Request a Quote for an Illinois Mortgage Broker Bond

We make it easy to request a quote at your convenience. Fill out this online form whenever you're ready. If you would like to get more information first, contact us or call 1-888-278-7389.

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