Mortgage Broker Bond Info
Applying for a Mortgage Broker bond or mortgage Banker Bond is like applying for a unsecured loan. The Surety will review credit and financials to make sure you can pay back the surety if a claim arises. (Don’t worry we have a program if you do not meet the normal Surety Company standards for Mortgage Broker bonds)
There are many different types of Surety Bonds for the mortgage industry there are Mortgage Broker Bonds, Mortgage Banker Bonds even Correspondent Lender Bonds. Mortgage Broker Bonds are usually required by the Department of Banking. Please check with your state for who your obligee is and the Mortgage Broker bond amount.
The Mortgage Broker Bond must be obtained before you can get your Mortgage Broker license. The bond is to protect the consumer against wrongful acts made by the Mortgage Broker please check the Mortgage Broker Bond form and state laws for details. Usually each State has a different Surety bond amount for example in Florida Mortgage Broker Bonds are in the amount of $10,000 and Texas Mortgage Broker Bonds are for $50,000. Some states require the Mortgage Broker Bond term to be for one year and renewed annually other states like Texas require the $50,000 Mortgage Broker Bond run for a 2 year Mortgage Broker Bond Term.