Who needs a Mortgage Broker Surety Bond?
Mortgage Broker Surety Bonds are a requirement in most states for individuals and businesses performing the negotiation and execution of any mortgage-related tasks as a broker in direct relation to loans made by a mortgage lender. Depending on where you are planning on doing business, this surety bond can go by many different names including Loan Originator Bond or Loan Broker Bond.
What is the purpose of a Mortgage Broker Surety Bond?
This type of license and permit bond guarantees that the mortgage broker will comply with all state regulations and requirements for their industry. It also ensures that all funds received from their clients are applied to the appropriate obligations, and that compensation is available for consumers that suffer financial harm due to fraud or fraudulent acts committed by the mortgage broker.
How much will my Mortgage Broker Surety Bond cost?
Annual premium amounts for Mortgage Broker Surety Bonds vary and are based on a number of factors including:
- The state requiring the bond
- Penalty amount of the bond
- Term Length
- Personal credit of the applicant
Applicants with strong credit could pay 1% – 4% of the total bond amount. Applicants with less than stellar credit can expect to pay slightly higher rates of 5% – 7%. Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.