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 Virginia mortgage broker and mortgage originator bond?
A mortgage broker bond is required by the State of Virginia 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.
A mortgage originator in Virginia is also required to obtain a mortgage originator bond to ensure compliance with state laws to be able to legally conduct business.
Who needs this bond?
Mortgage brokers, mortgage lenders, and mortgage loan originators are required by State of Virginia statutes to obtain a bond.
What is the amount of the bond?
Mortgage brokers in Virginia are required to obtain a surety bond of $25,000. The bond must be issued by a Virginia licensed property and casualty insurer in the exact legal name of the applicant. This requirement is not applicable if the applicant is already a licensed mortgage lender in Virginia. For more information on Virginia’s mortgage broker requirements, visit the NMLS website.
Mortgage originators are required to obtain surety bonds based upon the volume of loans brokered, made, or originated during the preceding year by the entity or individual filing the bond. If the entity or individual has a total loan volume under $5,000,001, a $25,000 surety bond is required. If between $5,000,000 and $20,000,000, a $50,000 bond is required. If between $20,000,001 and $50,000,000, a $75,000 bond is required. If between $50,000,001 and $100,000,000, a $100,000 bond is required. If over $100,000,000, a $150,000 bond is required. For more information on Virginia’s mortgage originator requirements, visit the State of Virginia’s website.
What is the process to obtain the bond?
Colonial offers the direct and digital way to obtain a mortgage broker bond or mortgage originator 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?
Mortgage broker bonds and mortgage lender bonds are 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 Virginia.
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.