Mortgage broker bond cost
The Indiana Securities Division requires mortgage brokers to post a surety bond with the Nationwide Mortgage Licensing System. The amount of these bonds depends on the previous years’ loan volume. The prices are as follows:
- $50,000-Less than $5 Million
- $60,000-More than $5 Million less than $20 Million
- $75,000-More than $20 Million
It is important to check with the Securities Division on the exact bond amount because that will affect the premium one pays. The premiums a mortgage lender pays depends on a review of their credit report. An applicant with exceptional credit may pay as low as 1% of the total bond amount.
Why this bond
A mortgage broker bond is required due to the Indiana Loan Broker Act. These bonds protect consumers from financial loss due to fraud and other unethical practices committed by mortgage professionals. If there is a claim against the bond the surety will pay it up the full bond amount. However, the principal (mortgage broker) must then reimburse the surety.
Mortgage broker bond details
Indiana mortgage broker bonds are in effect for one year and must be renewed annually. The bond is in full effect for the year unless claimed against or cancelled. The surety has the right to cancel the bond if they give 30-days’ written notice to the Indiana Securities Division.
Become a residential mortgage licensee
Applicants wishing to become a mortgage broker in Indiana must submit the following:
- Complete 20 hours of NMLS approved pre-license education courses
- A criminal background check
- A surety bond in the correct amount
- $80 licensing fee
Apply for your surety bond
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