Connecticut Mortgage Correspondent Lender Surety Bond
The State of Connecticut Department of Banking administers through the National Mortgage Licensing System (NMLS), the licensing of Mortgage Correspondent Lenders, mortgage brokers, mortgage servicers and mortgage lenders.
Connecticut Statutes Chapter 36a Section 671 – 671d defines the requirements for the mortgage servicer and mortgage lender regulations. Mortgage correspondent lenders need to obtain a license and surety bond prior to offering any mortgage services. The surety bond ensures compliance of state laws and honest and ethical business practices.
Surety Bond and License Requirements:
- Complete all pre-licensing education and take the written examination.
- Obtain a Certificate of Authority from the Connecticut Secretary of State to operate a business in the state.
- Complete the mortgage correspondent license application (MU4) found on the National Mortgage Licensing System (NMLS) and pay the applicable NMLS processing fee, credit report fee, Connecticut license fee, FBI Criminal Background Check and State Criminal Background Check Fees.
- Indicate on the application any trade names or dba’s that will be used.
- Follow a requirement to have an onsite manager or qualifying individual, along with the following: must be licensed as a mortgage loan originator with Connecticut, have worked in the mortgage business industry for a minimum of three of the last five years, and be physically in the main office location.
- Provide the name of the Resident Agent.
- Complete the Work Experience Form.
- Provide a balance sheet dated within the past 12 months of the date of the license application. The balance sheet must reflect a tangible net worth of at least $50,000.
- Provide copies of business formation such as a Corporate Charter or Articles of Incorporation, Articles of Organization and Operating Agreement or Partnership Agreement, if applicable.
- If applicant answered "Yes" to any of the Disclosure Questions, provide complete details and any applicable supporting documentation.
- Obtain a minimum $100,000 surety bond. The surety bond covers the main office and an addendum to the bond (a rider) will be required for any branch offices. The name of the applicant must match exactly the full legal name of on that will be listed on the surety bond.
How Much Will a Mortgage Correspondent Lender Bond Cost?
The premium that you pay for a Connecticut Mortgage Correspondent Lender Surety Bond is based on credit and business and personal financials. Premiums start at .75% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Did You know?
Connecticut mortgage correspondent lender licenses must be renewed by December 31 of each year.
Related Links:NMLS - Connecticut Mortgage Correspondent Lender License - New Application Checklist NMLS Registration Portal
Connecticut Department of Banking - Mortgage Broker Licensing
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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