Iowa Mortgage Bankers Surety Bond

The State of Iowa, Division of Banking, Finance Bureau, is tasked with the oversight of licensure of residential mortgage industry professionals which includes residential mortgage individuals and companies and mortgage loan originators. The Iowa Code Chapter 535B, defines the licensing and regulation of mortgage bankers and the surety bond requirement.

Surety Bond and License Requirements:

1. Complete the mortgage banker application found on the NMLS system and pay the applicable filing fee, FBI Criminal Background Check fee.
2. Obtain a minimum $100,000 surety bond for a total loan volumes up to $100,000,000. Obtain a $150,000 surety bond if the total loan values are over $100,000,000. The surety bond will be submitted electronically by the surety to NMLS.
3. If applicable, provide HUD classification approval.
4. Provide three professional references. All letters must be written on letterhead, and dated with 180 days from the date of application, and signed. One must be from a state or federal banking institution and provide a standing of the account.
5. Provide an audited financial statement prepared by a Certified Public Accountant, dated within 90 days of the business fiscal year end. Submitted financials must include a statement of cash flows, balance sheet, income statement, and any relevant notes. New start up businesses must submit an initial statement of condition.
6. Obtain a Certificate of Authority or Good Standing, dated within 60 days from the date of application. Out of state businesses must obtain a Certified Proof of Authorization. Obtain these documents through the Iowa Secretary of State.
7. Complete the Authorization for a Background Check and Release for each person who has ownership and or control of the business.
8. Provide formation documentation for applicants that are partnerships, corporations, or limited liability companies.
9. All control persons for the business must submit a set of fingerprints.
10. Indicate on the application any dba’s or trade names that will be used. Dba’s or trade names must be registered with the Iowa Secretary of State and obtain an Adoption of Fictitious Name.
11. If applicant answers Yes to any of the Disclosure Questions, provide complete details and any applicable documents.

How Much Will This Bond Cost?

The premium that you pay for an Iowa Mortgage Banker Surety Bond is dependent on credit and personal and/or business financial statements, and the bond amount required. 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?

The Iowa mortgage banker license renews annually by December 31.

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