Are You Paying Too Much For Your Surety Bond?

Real Estate Broker Bond

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If you’re in the mortgage industry, it’s time to start thinking about your license renewals for 2018. The renewal period for the NMLS starts on Nov. 1, 2017 and ends on Dec. 31, 2017.  In order to avoid penalty fees, be sure to submit all the required documentation and fees prior to the deadline.

This is the time to make sure your records are up to date, pay the NMLS processing fee, and pay for renewal requests. This is also a good time to save some money and shop for a better rate on your surety bond.

Your renewal may also include an update to your bond amount due to loan volume increases, loan underwritten, etc.   The increased bond amount can affect the premium that you pay yearly, and may require additional underwriting by the surety that wrote the bond.  Leave ample time for the underwriting review, and have business financial statements available in the event copies are requested.

Industry professionals who may be required to obtain a surety bond for licensing include:

  • Mortgage Bankers
  • Mortgage Brokers
  • Mortgage Correspondent Lenders
  • Mortgage Dual Authority
  • Mortgage Lenders
  • Mortgage Loan Originators
  • Mortgage Loan Servicers
  • Mortgage Processors
  • Mortgage Servicers
  • Seller of Checks

Surety bond requirements vary by state, and the premium amount you pay is based on business or personal credit and the bond amount required. SuretyGroup.com is licensed to write all surety bonds for the mortgage industry in all 50 states.

Contact our Surety Bond Specialists at 1‑844‑432‑6637, or email info@suretygroup.com and we’ll shop your bond for a better rate, at no obligation to you.

 

Related Links:

SuretyGroup.com List of Bond Amounts for Each State

Preparing for Company Renewal

NMLS Annual Renewal Information

NMLS Electronic Surety Bond for Licensees

 

SuretyGroup.com – Your Online Bond Provider.

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Massachusetts Mortgage Broker Surety Bond Requirement

A for sale sign is in front of a house.Long ago the pilgrims settled in Massachusetts as one of the 13 colonies. Land was plentiful and the people that settled made it their home. As more people came to settle in the colonies, it resulted in friction and wars over the rightful ownership of the land and who would eventually be allowed to own the deed for it.

These days, land and housing in particular may be fought over in real estate wars. The real estate market in certain areas of Massachusetts has a very limited inventory of houses for sale, and may require a “bidding war” between potential buyers. This often results in a bigger chunk of a home buyer’s income to live in a city such as Boston. Instead, buyers may need to look in towns and cities in the eastern part of the state for more affordable housing and to find it a little easier on the pocket book.

Home buyers need to be prepared prior to making an offer on a house, condominium or townhouse, and have a pre-approval letter from a mortgage broker or lender. The mortgage broker or lender will look at the buyer’s credit reports, employment history and income. This determines the amount that can be borrowed for a mortgage loan and the interest rate that may be offered.

Mortgage brokers play a large role in the process of obtaining a mortgage loan for real estate purposes, and are required to be licensed if they receive compensation for mortgage related services. This includes assisting with mortgage loan offers, placement of loans, negotiation of loans and the finding of mortgage loans for residential property in Massachusetts.

Mortgage brokers as a license requirement must also obtain a $75,000 surety bond. The surety bond ensures the faithful performance of the mortgage broker, officers and employees to fulfill all written agreements or commitments, and to correctly and accurately account for any funds received by the client.

Massachusetts mortgage brokers can get the surety bond they need from SuretyGroup.com to meet the state license requirements. We offer low rates and can quickly upload your bond into the National Mortgage Licensing Service (NMLS) system. Email info@suretygroup.com, apply online or call our Surety Bond Specialists today at 1‑844‑432‑6637.

 

SuretyGroup.com – Your Online Bond Provider.

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Maryland Mortgage Lenders and Mortgage Brokers

A house and key

Surety Bond Requirements

Maryland is a state of abundant waterways, coastlines and the Atlantic Ocean, and is in close proximity to the hub of many federal services.  The state offers many historic landmarks, renowned colleges and universities and is the home of the Baltimore Ravens National Football League.  Residents of the state often make the commute to Washington D.C. for their jobs and reside in Maryland due to the lower cost of housing.

As with many other states, Maryland is also experiencing a growing real estate market where housing inventories are low and sales are high, and home buyers must make quick decisions when deciding on the house they want to purchase.  As a condition of most real estate purchases, the home buyers must have a letter of pre-qualification from a lender to ensure that they most likely can qualify for a mortgage loan to complete the purchase transaction.

To obtain a pre-qualification letter, a home buyer can turn to a mortgage lender or mortgage broker.  Mortgage lenders make loans directly to a buyer where as a mortgage broker works with many lenders. The state of Maryland requires all mortgage lenders and mortgage brokers to be licensed to offer mortgage related services for compensation.

In order to obtain a Maryland mortgage lender or mortgage broker license, they must first provide evidence of a sufficient business net worth.  The minimum net worth requirement is $25,000 if the business offers broker and/or services only.  A minimum net worth of $25,000 is required for lender services in which a loan is secured by residential real property.  The net worth increases to a maximum of $250,000 based on the volume of loans in the previous 12 months.

Mortgage lenders and mortgage brokers must secure a surety bond that is also based on the volume of loans from the previous 12 months.  The minimum surety bond requirement is $50,000 and covers total annual loan volumes up to $3,000,000.  If the total loan volume goes over $3,000,000 but is less than $10,000,000, a $100,000 surety bond is required.  For total loan volumes exceeding $10,000,000, the surety bond requirement is increased to $150,000.

Maryland mortgage lenders and brokers play a significant role in the home purchasing process. SuretyGroup.com has the bond that is needed to meet the license requirement.  We offer free, no-obligation quotes, low rates and fast service. Email info@suretygroup.com, apply online or call us today at 1‑844‑432‑6637!

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

Illinois Residential Mortgage Broker Bond Requirements

Someone holding house keys in their handIn today’s Illinois real estate market, buyers must be ready to make quick decisions when purchasing a home.  According the Illinois Realtors July 24, 2017 news release, Illinois is experiencing a shortage of residential housing inventory, which in return results in fewer choices when purchasing a home.  Buyers must be prepared prior to providing an offer on a house to ensure that they have adequate purchasing power and will qualify for the loan they need.  This includes receiving a financial prequalification to submit with the offer or usually within a few days of the offer.  Buyers often turn to mortgage brokers to take them through the buying process and to get them the best interest rates for the type of loan they need.

Residential Mortgage Brokers in Illinois must apply for a license prior to offering services, negotiating, funding, originating or purchasing a loan for compensation to any borrower.  License requirements include having a $50,000 minimum net worth for in state mortgage brokers, and $150,000 for mortgage brokers that do not have an Illinois office.  Mortgage brokers must also provide annual financial statements to ensure that the net worth of the business meets the minimum state requirements.

Additionally, residential mortgage brokers must obtain a minimum $50,000 surety bond.  The bond amount is based on the total amount of loans written annually.  If the total amount of loans is over $5,000,000 but is less than $20,000,000, a $50,000 surety bond is required.  If the total loan amount is more than $20,000,000 but less than $50,000,000, a $75,000 surety bond is required.  If the total amount of loans is more than $50,000,000 but less than $100,000,000, a $100,000 surety bond is required.  And if the total amount of loans exceeds $100,000,000, a $150,000 surety bond is required.

Surety bonds over $50,000 will need personal and financial documents submitted when applying for the bond.  Since the surety bond amounts are higher, the risk for the surety is greater.  The financial documents will be reviewed by an underwriter whom will determine the rate to be quoted and if any collateral will be required.  The rate is the premium that will need to be paid to ensure compliance for the license requirement.

The surety bond guarantees that mortgage brokers will comply with the Residential Mortgage Act of 1987, including general lending practices, loan application practices, loan brokerage practices, allowable advertising practices, commitment of loan and closing practices.

In addition to the surety bond, a $100,000 fidelity bond is also required.  This bond ensures that any payments or securities the mortgage broker has received or has custody of for a residential mortgage loan are cared for properly.  Failure to properly care for the funds could result in a claim against the bond, loss of the broker’s license, or in some cases criminal prosecution.

Illinois mortgage brokers can obtain the surety and fidelity bonds they need to meet the license requirements.  SuretyGroup.com offers great rates, same day service and best of all, SuretyGroup.com has the bond you need! Email info@suretygroup.com, apply online or call our Surety Bond Specialists today at 1‑844‑432‑6637!

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

 

Connecticut Mortgage Broker Surety Bond Requirement

House keys on a keychainConnecticut is the southernmost state in New England, home to more than three million people, and ranks fifth in quality of life with low crime and poverty, healthy residents and a strong education system, according to the Forbes 2016 best states for business report. Connecticut has a longstanding maritime presence and has a industry history of financial services, including insurance companies in Hartford.

According to the Connecticut Real Estate Market Report published by Berkshire Hathaway Home Services, for the second quarter of 2017, the state has seen a 5.7% sales volume increase over the previous year.  The robust real estate market means more homes are bought and purchased that often require mortgage loans.  Home buyers can turn to mortgage brokers for loan preapproval and for finding the best mortgage loan type and rate that fits the buyer’s needs.

Mortgage brokers in Connecticut must first obtain a license before offering to negotiate mortgage loans, take mortgage loan applications, offer mortgage loans with the expectation of being compensated for the services.  Those not required to be licensed include any bank, out-of-state bank, in state or out-of-state credit unions, mortgage lenders, and nonprofit organizations.  If a mortgage broker is not sure if a license is required, they may contact the Connecticut Department of Banking for more information at 800-831-7225.

Mortgage brokers will need to apply for licensure through the National Mortgage Licensing System (NMLS), which is the agency that handles the Connecticut Department of Banking licensing.  Mortgage brokers will also need to obtain $50,000 surety bond.  The bond guarantees that client funds will be applied to their loan in accordance with state laws.  If the mortgage broker misuses or misapplies the funds, then a claim can be placed on the bond.

Connecticut mortgage brokers can get the surety bond they need from SuretyGroup.com to meet the compliance requirements for their license.  We offer low rates and fast service.  Email info@suretygroup.com, apply online or call us today at 1‑844‑432‑6637!

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

Colorado Mortgage Loan Originator Surety Bond Requirement

Real Estate Broker BondColorado, with its majestic mountains, canyons and grand flowing rivers, provides endless beauty and stunning views for all to see. The state boasts of cities such as Denver, Colorado Springs, Boulder, Aspen, Steamboat Springs and other friendly places throughout the state that provide jobs and living opportunities for its residents. Houses vary in cost, and people in the market to purchase a home will find an array of housing in all price ranges. With purchasing a house, home buyers often go through a mortgage loan process, which includes the use of mortgage loan originators.

Mortgage loan originators provide services such as offers to originate mortgage loans and originating mortgage loans. Mortgage loan originator activities can include first and second mortgage brokering, home equity or lines of credit lending, mortgage loan modifications, reverse mortgages, foreclosure consulting and other origination services.

Mortgage loan originators in Colorado are required to be licensed, have Errors and Omissions Insurance, and need to obtain a surety bond based on the number of loan originators, or if the originator works as a sole proprietor. Individual or sole proprietor licensed mortgage originators must obtain a minimum $25,000 surety bond. Companies that employ or utilize exclusive agents and that have less than 20 licensed mortgage originators must have a minimum $100,000 surety bond. Companies that employ or utilize direct agents that have more than 20 mortgage loan originators are required to have a minimum $200,000 surety bond.

The surety bond is a guarantee of faithful performance of mortgage loan originator activities, which include providing services in an honest manner and follow the state and federal laws. Fraud, forgery and criminal impersonation is prohibited while conducting mortgage loan originator duties and can result in a claim against the bond.

Colorado mortgage loan originators can apply for a surety bond with SuretyGroup.com.  We offer low rates, fast service and best of all we can get you the bond you need to meet the compliance requirements for licensure.  Email info@suretygroup.com, apply online or call our Surety Bond Specialists today at 1‑844‑432‑6637!

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

 

Arkansas Mortgage Broker Surety Bonds

Rising Trend in Home Sales

Real Estate Broker Bond

In February 2017, the Arkansas Realtors Association released home sales information to the Arkansas Economic Development Institute. It showed a rising trend in home sales for the last four years, and had surpassed the 2008 pre-recession level of sales. With the increase in sales, many of the homes sold required a mortgage loan. Home buyers or borrowers in an effort to find a loan that works best for them will often turn to a mortgage broker.

Mortgage Broker Licensing

Arkansas, like many other states, requires mortgage brokers to be licensed if they are compensated or expect to be compensated in some form, and that solicits through such means as a telephone, internet, email, by mail, or in person with the borrowers or potential borrowers. This also includes accepting or offers to accept an application for a mortgage loan, or offers to negotiate or negotiate the terms or conditions of a mortgage loan; mortgage loan commitments or interest rate guarantee agreements to borrowers.

A requirement for the license process includes obtaining a minimum $100,000 surety bond, which is for the benefit of any claimants if the mortgage broker or its employed loan officers fails to faithfully perform the obligations set forth in the bond.  This includes faithful handling of any funds paid into or deposited with the mortgage broker.

The surety bond amount is based on the annual mortgage loan activity that occurred during the previous year. Loan volumes totaling more than $10,000,001 to $25,000,000 require a $150,000 surety bond, and loan volumes exceeding $25,000,001 require a $200,000 surety bond.  The bond is filed with the state and must be renewed annually.

Borrowers can verify whether a mortgage broker is in good standing with the state prior to any business transaction. The Arkansas Securities Department provides a website link to verify the license status.

SuretyGroup.com has the Arkansas Mortgage Broker surety bond that is needed to meet the license requirements.  Apply online or call us today at 1‑844‑432‑6637!

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

Alabama Mortgage Broker License Requirements

Real Estate Broker Bond

The Draw of the South

From the Gulf of Mexico to the picturesque view from the Cheaha Mountain,  Alabama is a state of many wonders.  Dotted with many lakes, streams and beach property, Alabama offers residents plenty of choices of places to live, work, and raise families.

Every day real estate transactions take place. Houses are listed for sale, offers are made for purchase, and loans are closed. Buyers of residential real estate often need the assistance of a mortgage broker to obtain a loan that fits their needs and to complete the purchase process.

Mortgage Broker Licensing

The Alabama State Banking Department requires mortgage brokers providing mortgage services such as the solicitation of loans, negotiating of mortgage loans and the offering of a loan to have a license.  The licensing process includes completing the educational requirements and submitting an application, completing a criminal background check, and providing documentation for persons that have ownership or control of the company.

In addition to the application, mortgage brokers must file a surety bond with the state.  The surety bond amount is based on the total volume of funded loan transactions in the prior year.  The initial required bond amount is $25,000, and thereafter will need to be re-evaluated annually and adjust the bond amount if necessary.  The surety bond amount will need to be increased to $50,000 when the total volume of loans funded exceeds $25,000,001.  If the total volume of loans is over $100,000,000, the maximum bond amount is raised to $75,000.

The surety bond ensures that mortgage brokers will comply with federal and state laws, rules and regulations and protect consumers from fraudulent loan transactions, proper disbursement of funds, and other prohibited activities.

SuretyGroup.com writes Mortgage Broker bonds for the state of Alabama.  Apply online or call us at 844-432-6637 today!

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

 

Tennessee Moves to NMLS for Title Pledge Lenders

Apply and Renew Licenses Online

Title Pledge Lender LicenseOn Aug. 1, 2017, the Tennessee Department of Financial Institutions will start using the Nationwide Multistate Licensing System (NMLS) to manage all Title Pledge Lender Licenses under the Tennessee Title Pledge Act. The Department will no longer accept applications directly after July 31, 2017.

Tennessee Title Pledge Lenders will be able to apply for, amend and renew licenses safely online through the NMLS.

A Title Pledge Lender is defined as “Any person engaged in the business of making title pledge agreements or property pledge agreements with pledgers.”

Each company must create a company record in the NMLS system, both for the company and for each branch license. Once a company has access to the NMLS, the following forms need to be submitted before Sept. 29, 2017:

  • Company Application for Licensed Companies
  • Biographical Statement and Consent Form for Licensed Companies for each Control Person
  • Branch Application for Licensed Companies for each Licensed Branch

The NMLS Checklist includes obtaining a Surety Bond or Letter of Credit:

  • Bond amount of $25,000 for each location
  • Applicant must mail the original Surety Bond or Letter of Credit to the Tennessee Department of Financial Institutions
  • Surety Bonds are for one-year terms and must be renewed annually
  • The total bond for a single license shall not exceed $200,000

 

SuretyGroup.com is licensed to write Tennessee Title Pledge Lender License Surety Bonds. Contact us for a free, no-obligation quote.  Apply online at SuretyGroup.com, email info@suretygroup.com or call our Surety Bond Specialists at 844-432-6637.

 

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.

Does a Mortgage Broker Need More Than One Bond?

Use the NMLS to Keep Compliant

Real Estate Broker Bond

Most states require that a mortgage broker secure a surety bond not only in the state they operate the business from, but also in any state that they conduct business in.  If the main office is in California but the mortgage broker has clients in Oregon, Nevada and Washington, a surety bond will then be required for each state.

The licensing process for each state is generally done through the Nationwide Mortgage Licensing System (http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx), otherwise known as the NMLS. The NMLS has an online application system where the mortgage broker can apply for a license for each state that is needed.  NMLS provides the licensing requirements by state, which can vary in scope and scale, and features checklists to guide the mortgage broker through the process.

For instance, California has a Residential Mortgage Lending Act that requires a minimum tangible net worth of $250,000 and a $50,000 surety bond.  In Oregon, the Mortgage Lender License requirement includes submitting financial statements but does not specify a minimum net worth and has a $50,000 surety bond.

In Washington, the Mortgage Broker License does not specify a minimum net worth, but has a $20,000 surety bond requirement with two bond options: one for those companies that employ their mortgage loan officers, and another version for those that hire independent contractor mortgage loan officers.

With complex rules for each state, let SuretyGroup.com help you through the surety bond process and find the lowest surety bond rates available.

SuretyGroup.com – Your Online Bond Provider.

Great Rates. Solid Advice. Quick Solutions.