Mortgage servicer bond cost
If you service mortgage loans for property located in Hawaii, you are required to post a surety bond. Bond premiums must be posted in the amount of $100,000. These bonds are subject to underwriting, meaning that amount you pay is determined by the financials of your credit report.
Regardless of your credit, our bond professionals can get you bonded at the lowest rate available to your specific needs. For an accurate estimation on how much you could pay for your bond.
Why this bond
Mortgage servicer bonds exist to provide financial security to consumers in the state of Hawaii. By posting this bond, principals (money servicers) promise to abide by Chapter 454M of the Hawaii Revised Statutes and perform all services involving mortgage loans in a professional and honest manner.
If it is discovered that the principal has failed to remain in compliance with all rules and regulations enforced by the bond, consumers will not be fiscally harmed as a result of fraud or malpractice. This bond helps enforce greater accountability in terms of record-keeping that faithfully accounts for all funds involved in mortgage transactions.
Mortgage servicer bond details
Hawaii mortgage servicer bonds runs concurrently with the service license term dates. If the surety or the principal decide to terminate the bond prior to its set date of expiration, a 30 days written notice is required to be submitted and filed with the obligee announcing said cancellation. This specific bond’s obligee is the Department of Commerce and Consumer Affairs.
Become a mortgage servicer
In order to legally conduct mortgage loan services in the state of Hawaii, individuals must obtain a mortgage servicer license issued through the National Mortgage Lending Service. Applicants should submit an application completed in its entirety inclusive of the following information:
- Method of doing business
- Disclosure questions
- Other trade name (if applicable)
- Physical business location
- Business plan
- Certificate of good standing
- Management chart
- All necessary and nonrefundable fees
Apply for your surety bond
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