What You Need to Know About Getting a Surety Bond When You Apply For a New State License

Most states require that mortgage bankers, mortgage brokers, and mortgage servicers get a surety bond before they will issue a new state license. Each state has a different requirement for a surety bond depending on whether you are a mortgage banker, a mortgage lender, a correspondent lender, or a mortgage servicer. The amount of the surety bond may also be dependent on your loan volume. What is a surety bond? It is an agreement between your company, the surety company (which is an insurance company), and the state regulator in which the surety company agrees to pay the state regulator if your company (or any of your employees or anyone acting on behalf of your company) commits fraud or other wrongful practice against a consumer. Surety bond premiums are set by each surety company so you should shop around to find the premium that you feel comfortable paying. You may also wish to inquire about whether the company that you are selecting allows payments of the premium in installments or whether it must be paid in one lump sum, how quickly they respond to your needs, and whether they require personal indemnities from the owners on the surety bond. Let’s find a time to chat so we can go over your surety bond requirements. CALL Mortgage License Solutions, LLC at 201-251-8001 or EMAIL Robin@Mortgagelicensesolutions.com to find out what amount of surety bond your mortgage company needs to submit for a new state mortgage license.