Mortgage Broker Surety Bond Apply now

What’s a Mortgage Broker Surety Bond?

A mortgage broker bond is a type of license bond meant to protect your clients from harm.  This harm can be caused by you or your company’s actions.  Generally, these bonds try to make sure you follow the state rules which govern the mortgage broker industry.  Laws for your industry vary by state and it’s important that you have more than just a basic understanding of them.

Mortgage broker bonds can also guarantee the payment of fines or fees associated with your brokerage license.  Many states can assess fines against your license for violations of law or best practices.  If you can’t or won’t pay the fines due, the surety bond may be forced to pay them on your behalf.

Why do I need a Mortgage Broker Bond?

Surety bonds are often required before a state license is issued to you or your company.  In many cases, most people don’t know about them until it shows up on their licensing paperwork.  Mortgage broker bonds are usually required by states to protect consumers.  They’re also a way that states help reinforce the importance of following their industry rules.

How do I apply for a Mortgage Broker Surety Bond?

  1. Complete our online Mortgage Broker Surety Bond application, or
  2. Download and complete our printable Mortgage Broker Surety Bond application, and
  3. Receive your surety bond quote in minutes!

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How much does a Mortgage Broker Bond cost?

The mortgage broker bond cost is usually based on your personal credit score.  The bond’s cost will most likely range in between 1-3% of the bond amount.  For example:  A $50,000 bond would cost between $500 and $1500.  Your bond cost may be more if you have bad credit.

How does a Mortgage Broker Surety Bond work?

Mortgage broker surety bonds are issued by a surety company.  The surety company reviews your credit, experience, and other information and then approves your bond.  We issue your surety bond, send it to you for your signature, and then you submit it to the appropriate state department.  It remains in place until cancelled or non-renewed by the surety company.

Now, let’s say someone files a claim against your broker bond.  The surety company is notified of the claim and given an opportunity to respond.  Usually, the company will investigate the claim to determine if it’s valid.  They make their decision as to the claim’s validity and decide to pay or deny it.  If the surety company pays the claim, you and the other indemnitors are responsible to pay the surety back.