West Virginia Mortgage Lender Surety Bonds

West Virginia Mortgage Lenders and Loan Originators are required to obtain a bond as a condition of licensure. The West Virginia Division of Financial Institutions, Mortgage Division is tasked with ensuring mortgage lenders and brokers are properly licensed and have surety bonds in place. The surety bond ensures compliance of state laws and ethical performance of duties. The prerequisites for licensure include a minimum net worth of $250,000, the ability to pass a criminal background and credit check, passage of pre-license and continued education testing.

Surety Bond and License Requirements:

1. Applicants must complete the mortgage lender license application through the National Mortgage Licensing System (NMLS) and pay the applicable license and NMLS processing fees. An additional fee for a criminal and credit background check is required made payable directly to the West Virginia Department of Financial Institutions.
2. Provide copies of financial statements, including an Income Statement, Balance Sheet, and Statement of Cash Flows along with any relevant notes (if available also submit the previous two fiscal year statements). If the company is a new entity, submit an initial Statement of Condition.
3. Obtain the required a West Virginia Mortgage Lender Surety Bond. Surety bond amounts range from a minimum of $100,000 to $250,000 based on loan origination volume written in one year. A surety bond is required for each license year and must be renewed on an annual basis.
4. Complete the Certificate of Compliance by Executive Director form.
5. An on-site manager is required for all locations where business is conducted with consumers.
6. If the applicant is a corporation, partnership or limited liability company, provide a certified copy of formation documents and obtain a Certificate of Good Standing or Certificate of Authorization from the West Virginia Secretary of State.
7. Applicants that will be using a dba or trade name must first file the name with the West Virginia Secretary of State and the Division of Financial Institutions.
8. Obtain a Business Registration Certificate from the West Virginia Department of Revenue.
9. Obtain a Credit Service Organization Certificate from the West Virginia Secretary of State. If exempt, provide an explanation for the exemption.
10. If employing mortgage loan originators, complete the Mortgage Loan Originator License application, otherwise provide and explaination in the notes section as to why the application is not required.
11. Submit fingerprint cards for each principal (two sets for each person). The cards must be completed on both the front and back sides. The cards and return mailing information can be obtained from idebruyn@wvdob.org.

How Much Will a West Virgina Mortgage Lender Bond Cost?

Premiums for a West Virginia Mortgage Lender/Mortgage Loan Originator Surety Bond are dependent on credit, the bond amount needed and will require business and/or personal financial statements. Our rates start as low as .75%. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

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