Mortgage broker bond cost
The Ohio Division of Financial Institutions requires mortgage brokers to post surety bonds. The required bond amount varies and should be equal to .5% of their loan origination volume. Broker and lender bonds cannot be less than $50,000 but also cannot exceed $150,000. Originator bonds cannot be less than $50,000 or greater than $100,000. Each additional business location requires another $10,000 bond.
These bonds are subject to underwriting, meaning the amount you’ll pay for your bond depends on the health of your credit report and financials. You can expect to pay only a fraction of the bond premium.
Why this bond
By posting an Ohio mortgage broker, originator or lender bond, principals (mortgage professionals) pledge to operate ethical business and adhere to all provisions stated in the Ohio Mortgage Broker Act, the Truth in Lending Act and the National Mortgage Lending System. These bonds protect consumers against fraud and other unethical practices committed by mortgage professionals.
Mortgage broker bond details
Ohio mortgage broker bonds expire annually on December 31. This bond may be continued for a subsequent year if the surety and principal sign a continuation certificate. These bonds remain in full force during their term unless canceled by the surety or principal. For cancellation, the surety must send a written cancellation notice to the obligee 30 days before bond termination.
Become a mortgage broker
Before applicants can start doing business as a mortgage broker in Ohio, they must be licensed. Applicants must submit completed license applications to the National Mortgage Licensing System. Completed applications must include:
- license fee
- personal history and experience
- independent credit report
- surety bond
Applicants may be required to submit additional information for license issuance.Take the first step toward becoming licensed in Ohio by purchasing your mortgage broker bond quickly, easily and accurately!
Apply for your surety bond
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