Texas Mortgage Broker Bond
Use this guide to learn the basics of the surety bond that all Texas mortgage brokers need.
What is a Texas Mortgage Broker Bond?
A surety bond like this one holds the bonded mortgage broker financially accountable if he or she breaks Texas state laws governing the mortgage industry.
How does a Texas Mortgage Broker Bond Work?
If someone feels their mortgage broker hasn't followed the law and that conduct had negative financial consequences, they may file a claim for damages against the surety bond. The surety agency that issues the bond guarantees payment for all valid claims. When it pays, however, the bonded mortgage broker must pay the amount of the claim back with interest and fees.
Who needs a Texas Mortgage Broker Surety Bond?
Obtaining a surety bond is a prerequisite for earning a Texas mortgage broker license, and a condition for keeping the license. Effectively all mortgage brokers in the Lonestar State need this type of surety bond.
Why is it necessary to have a Texas Mortgage Broker Bond?
Surety bonds discourage unlawful and unethical behavior by holding the bonded party responsible for the consequences. Texas requires mortgage brokers to have a bond as a way to encourage upstanding behavior and regulate the mortgage industry.
Who are the parties involved in a Texas Mortgage Broker Bond?
- Principal - The mortgage broker who acquires the surety bond and pays for claims.
- Obligee - Anyone wronged by a mortgage broker who files a claim against the surety bond.
- Surety - The agency that issues and backs the surety bond.
How much does a Texas Mortgage Broker Bond Cost?
Texas requires mortgage brokers to have a bond valued at $50,000. The cost is a small percentage of that. How much, exactly, depends on the bond applicant's credit. Don't let bad credit keep you from getting a bond - work with Viking Bond Service instead.
How to apply for a Texas Mortgage Broker Bond
You will need to complete a standard bond application, provide a copy of the bond requirements along with a financial statement, and submit to a credit check. The surety agency will then quote you a cost to activate the bond. You receive documentation proving you've met the Texas mortgage broker bond requirements after you pay the premium.
Viking Bond Service for Texas Mortgage Broker Bonds
Complete our online bond application at your convenience. Or connect with one of our surety bond experts first: call us at 1-888-278-7389, or send your questions through the contact form on this page.
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