Mortgage lender bond bond cost
The Office of Financial Institutions requires mortgage professionals who work in the state to post a surety bond. The bond amount is determined based on the amount of total loan volume from the previous year.
Mortgage lenders with less than $1 million in total loan volume during the previous year need a $25,000 bond. Mortgage lenders in their first year of business also need $25,000 in bonding coverage. Mortgage lenders with total loan volume of $1 million or greater in the previous year need a $50,000 bond.
These bonds are subject to underwriting, which means that the amount a client will pay is based on their personal and business credit report. Rest assured knowing our team of experts works personally with you to provide the best rate available no matter your financial situation.The best way to determine your exact surety bond cost is by calling 888.610.4474 to request your free quote.
Why need this
This type of surety bond ensures that the principal (lender/broker) will abide by all rules, laws and regulations stated in the Louisiana Revised Statutes Title 6. Some of these laws include, but are not limited to:
- keeping all business records for at least 30 days
- paying necessary funds to clients or the state
- not using fraudulent advertising
- not making false promises
- never knowingly engaging in fraudulent loans
If any of these laws are broken by a bonded mortgage lender/broker, a claim can be made against the bond to provide reparation for damages.For more information about mortgage lender bonds in Louisiana, submit an online bond request now.
The principal’s name on the bond form must match the full legal name of the applicant exactly – including trade names. The bond amount will be determined by the dollar loan volume of residential mortgage loans according to the Louisiana S.A.F.E. Residential Mortgage Lending Act reported by the mortgage company each year.
Louisiana mortgage lender bonds are continuous until canceled. If the bond is to be canceled, the surety must provide 60 days of prior written notice to the Louisiana Office of Financial Institutions.
Become a mortgage lender
Becoming bonded is simply the first step toward obtaining your Louisiana mortgage lender/broker license. Other materials that must be submitted with your license application include, but are not limited to:
- fingerprint cards
- police issued background check
- mortgage loan origination agreement
- organization chart
- promissory notes
- proof of full line of credit
- and more
Detailed licensing information, including the required application packet, can be found in the “Important Links” section below.If you’re ready to get your mortgage lender license in Louisiana, contact a surety expert now to purchase your required bond.
Apply for your surety bond
Get a FREE Broker Bond Quote Today! Click here to begin