Virginia Mortgage Loan Originator Surety Bonds

Virginia Mortgage Loan Originators are required to have a license and file a Virginia Mortgage Loan Originator Surety Bond as a condition of licensure. Individuals that act as mortgage loan originators or transitional mortgage loan originators that are employees or exclusive agents or are not employees; that have or have not taken the pre-licensing examination or may be employed by an exempt entity are required to have a license to conduct business. Entities that employ mortgage loan originators but are exempt from licensing can register as an option. Applicants will need to apply for their license through the National Mortgage Licensing System (NMLS).

Originator Requirements:

1. Complete the pre-license education and pass either the SAFE Test or the National Test Component of the Uniform State Content, complete the application and pay the NMLS processing fee, credit report fee, licensing fee, FBI criminal background check fee.
2. Upload the following documents into NMLS: a company sponsorship (if employed by a licensed mortgage broker or lender) and an employment history.
3. Mail the following to the Bureau of Financial Institutions, Administration and Licensing Section: Employment Verification Form, evidence of financial responsibility (if applicant has any outstanding judgements, collection accounts, tax liens or government liens, delinquent or charged-off accounts, foreclosures within the past seven years). Provide a detailed explanation for each credit mark. Also provide a Mortgage Business Certificate Form (CCB-8816).
4. If the applicant is required to have a license and is not an employee or exclusive agent of either an entity or persons licensed or is exempt from licensing must obtain a surety bond.
5. If any of the disclosure statements were answered "yes," provide an explanation for each one.

Exempt Company Registration Requirements:

1. Complete the application and pay the NMLS processing fee.
2. Exempt mortgage companies that will be using a trade name or dba need to obtain an assumed name certificate obtained from the local county or city circuit court. A Certificate of Authority or a Good Standing Certificate is also required and can be obtained from the Clerk of the Virginia State Corporation Commission. Upload a copy of each into NMLS

Surety Bond Requirements:

Obtain a Virginia Mortgage Loan Originator Surety Bond. Bond amounts are based on the volume of loans brokered in the previous year. Mortgage Loan Originators who did not broker loans in the previous year are required to carry a $25,000 surety bond.

Send the original bond, the Mortgage Business Certification (form CCB-8816) and a written explanation of the reason that the company is exempt to the Bureau of Financial Institutions, Administration and Licensing Section, P.O. Box 640, Richmond, VA 23218-0640.

How Much Will a Virginia Loan Originator Bond Cost?

Premiums for a Virginia Mortgage Loan Originator Surety Bond are dependent on credit and the bond amount required. Premiums start at .75% of the bond amount with good credit. Bond amounts over $50,000 will require personal and business financial statements.

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