What is a Mortgage Servicer Surety Bond?
Any sole proprietor or company who conducts business as a mortgage servicer must be licensed through the Department of Insurance and Financial Services (DIFS). The mortgage servicer is the entity that manages your loan, including sending you mortgage statements on a monthly and annual basis. Mortgage Servicer Surety Bonds guarantee that the principal (mortgage servicer) complies with all provisions of state law and protects individuals and the state from loss or damages.
You can trust Pacific Surety to handle all your Mortgage Servicer Surety Bond needs.
Which states require Mortgage Servicer Bonds?
Pacific Surety proudly offers Mortgage Servicer 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 Servicer Bonds?
Bond amounts for Mortgage Servicer Surety Bonds vary and are based the obligee’s requirements for licensure. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much do Mortgage Servicer Bonds cost?
Pricing for A Mortgage Servicer 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 Servicer 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 Servicer Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Mortgage Servicer 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 Servicer 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 Servicer Surety Bond protect?
Any sole proprietor or company who conducts business as a mortgage servicer must be licensed through the Department of Insurance and Financial Services (DIFS). The mortgage servicers is the entity that manages your loan day to day, including sending you mortgage statements on a monthly and annual basis. Mortgage Servicer Surety Bonds guarantee that the principal (mortgage servicer) complies with all provisions of State law and protects individuals and the state from loss or damages. Should state laws be violated, a claim can be filed on their Mortgage Servicer 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.