Colonial Surety is authorized by the Nationwide Multistate Licensing System & Registry (NMLS) to write electronic mortgage broker bonds. If you are not registered with the NMLS, please visit the NMLS website.
What is a Hawaii mortgage broker bond?
A mortgage broker bond is required by the State of Hawaii as a prerequisite for any licensed mortgage broker to legally conduct business. The bond guarantees that the mortgage broker will operate in accordance with the applicable government rules and regulations.
Who needs this bond?
Mortgage brokers, mortgage lenders, mortgage servicers, and mortgage loan originators are required by State of Hawaii statutes to obtain a bond.
What is the amount of the bond?
The State of Hawaii requires a $100,000 surety bond before allowing a mortgage servicer’s license to become effective. The name of the principal insured on the bond must match exactly the full legal name of the applicant, including all Hawaii approved Other Trade Names. No mortgage servicer licensee shall act as a mortgage servicer in Hawaii without maintaining this surety bond.
The surety bond must: be completed on a form approved by the attorney general of Hawaii; be conditioned upon the mortgage servicer licensee faithfully performing any and all written agreements or commitments with or for the benefit of borrowers and mortgagees, truly and faithfully accounting for all funds received from a borrower or mortgagee in their capacity as a mortgage servicer; and contain the policy number of the surety bond documents in the comment field.
For more information on Hawaii’s mortgage broker requirements, visit the NMLS website.
What is the process to obtain the bond?
Colonial offers the direct and digital way to obtain a mortgage broker bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be available instantly. It’s that simple!
What does the bond cost?
A mortgage broker bond is reasonably priced and easy to obtain. You may notice that with other insurance agents and middlemen, your premium rate will fluctuate and include additional hidden fees and costs. Colonial offers our lowest possible rate. Premium is based on the amount of the bond required by the State of Hawaii Department of Commerce and Consumer Affairs.
Does it matter where I get the bond?
It is important to understand how surety bonds work, and who is the insurance company issuing your bonds. It is easy to obtain a mortgage broker bond when you deal directly with a quality insurance company licensed to write surety bonds. Colonial is an A (Excellent) rated insurance company by A.M. Best that has been incorporated since 1930. We are NMLS approved, Treasury listed, and licensed and admitted in all U.S. states and territories.