Tennessee Mortgage Broker Bond
Before you start a career as a mortgage broker in Tennessee, you will need to obtain a surety bond as one of the license requirements. This page explains everything you should know about Tennessee mortgage broker bonds.
How Does a Tennessee Mortgage Broker Bond Work?
All surety bond types make the bondholder (the principal) liable for misconduct that causes damages to another party (the obligee). In the case of Tennessee mortgage broker surety bonds, if a mortgage broker violates state laws or codes of conduct, resulting in financial losses for either a mortgage seeker or a mortgage lender, that broker can be held accountable under the surety bond.
The obligee has the right to file a claim for compensation against the mortgage broker bond for an amount equal to the damages they suffered. As long as the claim is valid, the principal (the mortgage broker) must pay for it. If they don't, however, the bond company (the surety) will settle the claim, guaranteed.
When the surety pays for a claim, it does not excuse the principal from financial liability. The principal must repay the surety the total claim amount with interest and fees added to the debt. Bond agreements make it more difficult for the principal to avoid their financial liability for misconduct – creating a strong incentive to follow the law and act ethically.
Tennessee Mortgage Broker Bond Requirements
In order to get a mortgage broker license in Tennessee, someone must acquire a surety bond with $90,000 in coverage, meaning the surety agrees to settle claims up to but not exceeding that amount. Brokers will need to show proof of having met the surety bond requirements to satisfy the license requirement.
How to Get a Tennessee Mortgage Broker Bond
A surety agency like Viking Bond Service can help you get multiple competitive bond offers and streamline the application process for a Tennessee mortgage broker bond in just a few steps:
- Complete a basic bond application
- Submit to a credit check
- Provide supplemental docs as necessary (financial statement, bond requirements, etc.)
Once submitted, the surety will use these application materials to provide you (the bond seeker) an individual quote for the cost of a surety bond. If you find the price acceptable, simply pay the premium to activate coverage, and you will receive proof of completing the bonding process.
The Cost of a Tennessee Mortgage Broker Bond
Surety bonds cost a small percentage of the coverage amount. The final amount depends on the bond seeker's credit score and financial history. Strong credit leads to lower premiums, but credit issues do the opposite. Don't let those issues put a Tennessee mortgage broker bond out of reach – take advantage of the bad credit surety bond program from Viking Bond Service.
Tennessee Mortgage Broker Bonds from Viking Bond Service
Viking Bond Service makes getting a bond fast, easy, and affordable. Request a quote 24/7, and get a number back in under one day! We also have a team standing by to answer all your questions. Contact us in writing or call 1-888-2-SURETY (1-888-278-7389).
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