What is a Mortgage Loan Company License Surety Bond?
In certain states, mortgage loan companies who wish to do business must first obtain a license and corresponding surety bond. These surety bonds guarantee that the principal (mortgage loan company) complies with all legal provisions and applicable requirements of their state. If any borrower or consumer incurs any losses or damages due to the principal’s failure to comply with the law, a claim may be filed against the surety bond. Any damages paid out by the surety must be reimbursed by the principal.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.
Which states require Mortgage Loan Company License Surety Bonds?
Pacific Surety proudly offers Mortgage Loan Company License Surety Bonds in the following states:
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for Mortgage Loan Company License Surety Bonds?
Bond amounts for Mortgage Loan Company License Surety Bonds vary. Please contact us with specific questions and one of our knowledgeable underwriting staff will assist you.
How much does a Mortgage Loan Company License Surety Bond cost?
Pricing for a Mortgage Loan Company License Surety Bonds will vary, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for anyone with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Mortgage Loan Company Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Mortgage Loan Company License Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for a Mortgage Loan Company License Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase a Mortgage Loan Company License Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Who does a Mortgage Loan Company License Surety Bond protect?
In certain states, mortgage loan companies who wish to do business must first obtain a license and corresponding surety bond. These surety bonds guarantee that the principal (mortgage loan company) complies with all legal provisions and applicable requirements of their state. If any borrower or consumer incurs any losses or damages due to the principal’s failure to comply with the law, a claim may be filed against the surety bond. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.