Mortgage broker bonds are required to obtain a mortgage broker license in most states, with the Nationwide Mortgage Licensing System overseeing mortgage broker licensure. But why exactly do you need to purchase a mortgage broker bond? What is their purpose?
Mortgage brokers need to obtain a license in order to legally conduct mortgage broker business in their state, and the mortgage broker bond serves as a financial guarantee from a surety company that the mortgage broker will uphold and follow all applicable state rules and regulations. It’s not insurance coverage; it’s a guarantee that compensates the state should there be a breach of applicable state rules and regulations. If there is a breach, the surety company will pay the state, but then because of the signed indemnity agreement required to obtain the bond, the surety will then seek repayment from the licensed mortgage broker issued the bond. Click here to learn more.
Purchase Mortgage Broker Bonds
Colonial Surety Company offers the direct and digital way to obtain a mortgage broker bond. Simply access our portal, complete the information requested, type in your payment method, and get your bond. Contact us today to get your mortgage broker bond.