Iowa Division of Banking (IDB) requires any company (including a sole proprietorship) that makes, originates or services at least four mortgage loans in a calendar year to obtain a broker license. The license authorizes the broker to preform the following: Third party mortgage loan underwriting, Third party mortgage loan processing and reverse mortgage brokering. Part of the application includes a $100,000 surety bond. Iowa Code §535B.4 prohibits a person from acting as a mortgage broker or using the title “mortgage broker” without first obtaining a license from the IDB.
As of September 12th, 2016, documents will be filed via the new Electronic surety bonds (ESB) on the Nationwide Multistate Licensing System (NMLS) portal. Existing brokers will need to have their current bonds converted in the system to meet new requirements.
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.