Loan service bond cost
If you or your company receive scheduled periodic payments from borrowers of residential mortgage loans (including escrow accounts) and make the payments to a third party or owner of the loan, the State of Vermont requires you to post a surety bond.
The Commissioner of Financial Regulation requires the bond and approves the amount you are mandated to post. The minimal amount for this specific bond is $100,000.
Prior to contacting a bond expert, be sure to have your required bond amount on-hand. Providing this information will speed up your bonding process and can even lower your premium.
This bond is subject to underwriting. This means that your premium is calculated by the financial credentials of your credit report. Low credit is no problem when you work with our team of surety specialist! They can get you quoted at the lowest rate available to your specific needs. Submit a bond request and find out how much you can pay for your bond.
Why this bond
By posting a bond, the principal (loan servicer) promises to faithfully conform to all provisions of the Loan Servicers Act (Title 8 Vermont Statutes Annotated, Chapter 85) including all rules and orders made by the Commissioner of Financial Regulation. If the principal practices unethical acts under this bond, any person who suffers a loss or damage will be indemnified. Unethical acts include:
- obtaining property by fraud or misrepresentation
- using any unfair means in servicing a loan
- misapplying loan payments to the balance of a loan
- failing to manage escrow accounts in accordance with provisions of the Loan Services Act
All bonds will remain in full force unless terminated by the surety. If the surety chooses to terminate a bond, a written cancellation notice must be mailed to the principal and Commissioner of Financial Regulation 60 days prior to the given termination date.
Become a loan servicer
To become a licensed loan servicer, you must first register as an agent with the Vermont Secretary of State. License applications must be fully completed and be accompanied with the following documents:
- $1,000 licensing fee
- $1,000 investigation fee
- $100 NMLS processing fee
- surety bond
- tax certification
- financial statement
Apply for your surety bond
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