Ohio Mortgage Broker Bond
As part of becoming a mortgage broker in Ohio, you will be required to get a license. One of the requirements to get a license is to obtain an Ohio mortgage broker surety bond first. This page outlines everything you should know about mortgage broker surety bonds in Ohio, including how they work, general requirements, costs, and more.
How Does an Ohio Mortgage Broker Bond Work?
Mortgage brokers are bound by certain state laws to protect the public. If a mortgage broker violates one of those laws and it results in financial damages for someone, the surety bond comes into play.
Ohio mortgage broker bonds hold the broker financially liable for illegal conduct. Someone who loses money because of an unscrupulous broker may file a claim against the bond seeking a financial settlement equal to the losses. Provided the claim holds up under investigation, the broker must always pay to settle the claim.
If, however, the broker refuses to pay, the bond company guarantees a settlement to the claimant. Since the financial liability is on the broker, though, the broker must repay the bond company the settlement amount plus interest and fees. Failure to repay results in loss of bond coverage and possible legal action.
Ohio Mortgage Broker Bond Requirements
A mortgage broker must have a bond with a minimum coverage limit equal to 0.5% of the value of all loans originated in the previous year. It must have at least $50,000 in coverage and cannot exceed $150,000. Coverage refers to the maximum amount the bond company agrees to pay to settle claims.
How to Get an Ohio Mortgage Broker Bond
A bond company will quote the cost of the surety bond, also known as the premium, and coverage activates as soon as the premium is paid. Getting a quote to start the bonding process involves a few simple steps:
- Complete a bond application
- Undergo a credit check
- Provide additional documentation as necessary
How Much Does an Ohio Mortgage Broker Bond Cost?
The Ohio mortgage broker bond cost is different for everyone. Bond companies calculate premiums on an individual basis, and the amount depends largely on the bond seeker's credit score and financial history. People with a high score and a spotless record will pay a small percentage of the coverage limit. Bond costs go up as your credit standing declines, but Viking Bond Service offers a special bad credit surety bond program to help keep bonds accessible and affordable.
Get an Ohio Mortgage Broker Bond From Viking Bond Service
Mortgage brokers across Ohio choose Viking Bond Service as their bond partner of choice. Find out why. Request a quote at any time, and we will get back to you with a quote in under 24 hours. We are also happy to answer questions or walk through anything related to surety bonds. Contact us or call 1-888-2-SURETY (1888-278-7389).
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