A mortgage broker is defined as any person who directly or indirectly solicits, processes, places or negotiates mortgage loans for a borrower, or offers to solicit, process, place or negotiate mortgage loans for a borrower. As part of the Alabama Mortgage Brokers Licensing Act (§ 5-25-1 et seq., Code of Alabama 1975), the Alabama Consumer Credit Act (§ 5-19-1 et seq., Code of Alabama 1975), and/or the Alabama Secure and Fair Enforcement for Mortgage Licensing Act (Act #2009-627), applicants must provide a surety bond to become a mortgage broker. Bond amounts are based on previous calendar year residential loans closed for existing brokers. New applicants can obtain a $25,000 minimum bond. Below is the tier structure for the state mandated bond amounts:
- $25,000 Bond Amount
- $0 -$25,000,000 in closed residential loans
- $50,000 Bond Amount
- $25,000,001 to $100,000,000 in closed residential loans
- $75,000 Bond Amount
- Over $100,000,000 in closed residential loans
This surety bond has an expiration date of December 31st. Prorated quotes are available.
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.