JW Surety Bonds

Mortgage Broker Bond - Rates

The bond market has changed dramatically the past few years. Only a couple years ago, you could obtain a Mortgage broker bond for .75% of the bond amount. These days are quite a different story, some of the top ten sureties in the US are approving clients with rates of 2.25%, and that is for clients with good credit!

JW Bond Consultants, Inc. is one of, if not the largest producers of mortgage broker bonds. Due to the high volume of mortgage brokers written, JW Bond Consultants, Inc. is permitted to approve certain bond classes in-house at the lowest tier rating (including mortgage broker bonds).

You can apply for mortgage broker bonds, mortgage banker bonds, and title agency bonds online and obtain your premium rates immediately. There is no further obligation, and you are approved regardless of your personal credit. Whether you have bad credit or even a bankruptcy, we can get you approved within minutes, with no collateral.

Apply online: Mortgage Broker Bond – Instant Approval Program

Insurance - Surety Bonds

A surety bond is not your typical form of insurance.

The main difference to the principal is that the principal will not be paid in anyway if their obligations are not met. A third party (the obligee) is compensated in the event of a claim.

With insurance a loss is expected by the insurance company. There is no loss expected when a surety guarantees a bond. In fact, if you do have a claim you can kiss your chances of obtaining a bond goodbye. In the current bond market, even high risk bond markets will deny you with previous claims.

Please come back soon for our next article on “The Best Way To Obtain A Surety Bond”

License & Permit Bonds - Different Rates For Different States

There are numerous factors that are taken into consideration when underwriting a surety bond. For a license and permit bond the owner(s) personal credit, home equity, and net worth are deciding factors on whether to decline or approve, and at what rate.

One factor overlooked by many is the state’s bond form for the specific bond you require. This is a very important factor, as it states what the bond is guaranteeing.

The sureties are always going to be looking for a cancellation clause and an aggregate limit clause; a bond form lacking these clauses will certainly be difficult to get approved, and even harder to obtain a reasonable rate.

Some bonds are simply riskier than others due to the type of work that is being done. For instance, ICC bonds are becoming more difficult to write without collateral. Most sureties are shying away from the bond completely due to the high number of claims associated with this class of business.

Dealer bonds are more difficult to write in Florida and Texas due to high claim volume. Some sureties simply refuse to write the bonds, which makes rates less competitive for the sureties that will approve them.

So next time you call a surety bond agent, don’t ask “I need a $10,000 bond, how much does that cost?”. There are simply too many factors that determine pricing, and any agent worth a grain of salt will know not to give you a quote when he/she clearly knows that the rate can change dramatically from many different factors.