Mortgage loan broker bond cost
The Kentucky Department of Financial institutions requires mortgage loan brokers to post $50,000 surety bonds.These bonds are subject to underwriting, which means that the price you’ll pay is based on a review of your personal credit report. Request your free bond quote now!
Why this bond
By posting a Kentucky mortgage loan broker bond, principals (mortgage loan brokers) pledge to fully comply with all the provisions of the KRS statute Chapter 286.8. Specifically, these bonds ensure that if the principal partakes in any fraudulent act and consumers are harmed as a result, the surety will compensate all harmed parties up to the full bond amount.
Prohibited acts under this bond include:
- employing a scheme, artifice or device to defraud
- failing to disburse funds
- delaying the close of a mortgage loan to increase fees, costs and interest
- obtaining property by misrepresentation
- failing to make disclosures
- failing to comply with federal laws
Ultimately, the principal must reimburse the surety for all damages paid out.
Mortgage loan broker bond details
Kentucky mortgage loan broker bonds remain continuous unless the surety chooses to cancel the bond. For cancellation, the surety must send a written cancellation notice to the commissioner 30 days prior to the effective cancellation date.All Kentucky bonds are subject to a state-imposed 1.8% surcharge.
Become a mortgage loan broker
To act as a broker in the Commonwealth of Kentucky, individuals must be licensed. To be eligible for licensure, applicants must complete all educational training courses, maintain a documented funding source of at least $1,000,000 and maintain a net worth of more than $100,000.
In addition to submitting proof of a funding source and net worth, applicants must attach a $50,000 surety bond, $750 licensing fee and $100 processing fee to the application.All licenses must be renewed by November 30 of each year.Take the first step toward becoming licensed by purchasing your Kentucky surety bond quickly, easily and accurately!
Apply for your surety bond
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