Mortgage Broker Bonds: Arkansas

Arkansas is considered a low risk state by most bonding companies. The bond form is agreeable and the state has the proper screening requirements to keep claims at a minimum. However, the $50,000 bond amount could present a problem for some applicants. In this article we will review the bond in detail and make suggestions as to what can be done for applicants that might have problems obtaining an approval at a good rate.

Current Market: The Arkansas mortgage broker bond is not too difficult to obtain. Most bonding companies agree with the bond language. However, not all bonding companies are comfortable with writing a $50,000 bond for new companies or for companies that have owners with credit flaws. Many bonding companies are licensed in Arkansas. However, Arkansas is not a common state for agencies to be licensed in. Most agencies are not nationwide like JW Bond Consultants, Inc.

Bond Amount: Arkansas requires a $50,000 surety bond of all mortgage broker companies operating in the state. The size of the bond is above average for mortgage broker bonds, which will cause many sureties to look at the surety bond applications very carefully. For a bond of this size, Most bonding companies will only approve applicants with 670 credit or higher, home ownership, and a profitable business financial statement or a resume showing previous work experience in the industry. Our agency offers an exclusive program that offers online approvals for applicants of any credit score. You can apply online at the following link: Mortgage Broker Instant Approval Program.

Bond Form: The bond form has standard language agreeable to most bonding companies, including aggregate and cancellation language. Therefore, underwriters will have no problem with the actual guarantee of the bond and declinations are due to the risk of the applicant, not the state.

Additional State Requirements: The Arkansas Securities Department (ASD) oversees mortgage broker licensing. Arkansas State Bank Department regulates mortgage brokers that are subsidiaries of commercial banks. As of January 1, 2004 Arkansas enacted the Fair Mortgage Lending Act to override all previous regulations. Applicants must provide a recent audited financial statement showing a minimum net worth of $25,000 as well as a resume of previous experience in the industry. Mortgage Broker applicants (not a bank subsidiary) must pay a $750 application fee for the main office as well as $100.00 for each branch office. Mortgage brokers must pay a yearly renewal fee of $350.

Special Programs: We offer an exclusive “Instant Approval Online Program” for this particular bond. The application takes less than five minutes to complete and the quote is given to you immediately, online. You can access the program at: Mortgage Broker – Instant Approval Online Program