Mortgage Licensee bond cost
Effective October 1, 2014, all companies offering mortgage services must post $100,000 surety bonds per business location. Licensees must also post a fidelity bond with errors and omissions coverage. Fidelity bond amounts are based on the licensee’s volume of servicing activity, with a minimum of $300,000.
The new law might also require some mortgage service providers or lenders to post additional bonds depending on the financial standing of the licensee. Connecticut mortgage licensee bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report.
Why this bond
By posting a Connecticut mortgage licensee surety bond, principals (mortgage lenders, correspondent lenders, brokers and loan originators) pledge to conduct business in accordance with the provisions of Section 36a-485 to 36a-498f (inclusive), 36a-534a and 36a-534b of the Connecticut General Statutes.
If the principal fails to comply with these terms, the bond protects any consumer harmed as a result of the principal’s unethical business practices up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
Mortgage Licensee bond details
Mortgage licensee bonds in Connecticut remain continuous until canceled. The surety can cancel the bond at any time by giving written notice to the Banking Commissioner stating the date cancellation will take effect. Notice must be sent by certified mail at least 30 days prior to the effective date.
The specific license type (mortgage lender, mortgage correspondent lender, mortgage broker or mortgage loan originator) must be indicated on the bond form.
Become a Mortgage Licensee
The requirements to become a licensed mortgage professional in Connecticut vary depending on the type of license being applied for. Complete licensing information can be found on the NMLS Resource Center website.
Take the first step toward becoming licensed in Connecticut by purchasing the surety bond you need quickly, easily and accurately!
Apply for your surety bond
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