Mortgage Broker Bonds

Who needs a mortgage broker bond?

Mortgage brokers are licensed real estate financial experts who help people find and negotiate financing terms for their mortgages.

Mortgage broker bonds are also known as loan broker bonds, mortgage loan originator bonds, and residential mortgage originator bonds.

Why do I need a mortgage broker bond?

A mortgage broker bond is typically required by states to protect consumers who are in the process of obtaining mortgages. The bond guarantees that the mortgage broker will comply with state regulations when conducting business.

The bond protects the broker’s clients from financial loss because of the broker’s fraudulent actions or misrepresentation. If a client suffers financial harm because of the mortgage broker’s actions and the broker does not correct the financial problem, the client can make a claim against the mortgage broker’s bond. The surety company that backs the bond will then compensate a client for their losses and the broker must repay the surety company in full.

How do I get a mortgage broker bond?

In most states, licensing requirements for mortgage brokers include successfully completing a mortgage broker course, submitting the state’s license application with the mortgage broker bond and licensing fee.

Each state has its own regulations regarding mortgage brokers. Mortgage brokers conducting business in different states will need to post a separate mortgage broker bond for each state. Check specific state requirements in order to meet their criteria. For information on obtaining a mortgage broker bond, contact E. R. Munro and Company at 1-877-376-8676  and choose option 2, Monday – Friday 9 a.m. to 4:30 p.m., or email [email protected].