Mortgage Broker Bonds: Florida

Florida mortgage brokers and lenders should count their blessings with this easy to obtain state requirement. The surety bond market is freely writing the Florida Mortgage Lender/Correspondent Lender bond. The amount is small, the bond form is agreeable to the bonding companies, and the state takes appropriate measures to assist in lowering claims.

Current Market: The surety bond industry is conservative in general, as the previous soft market claims caused many companies to close their doors for good. Unfortunately, many sureties lump mortgage broker bonds in with other higher risk license bonds. Fortunately, there are some bonding companies that consider mortgage brokers a low risk guarantee.

Bond Amount: The state of Florida only requires a $10,000 surety bond. It is one of the lowest state requirements, only higher than Oklahoma. It is past due for the state to increase the bond requirement to protect citizens from fraud. If an applicant obtains a high quote or a declination, it is due to the applicants perceived risk, as the bond amount is extremely low. If a principal does not qualify for a bond as small as the Mortgage Lender/Florida Correspondent Lender bond they will not qualify for any other state either.

Bond Form: The state required bond form has clauses required by most bonding companies. The aggregate clause does not allow the total amount of claims to exceed the bond amount. The cancellation clause allows the bonding company to cancel the bond within 30 days of notice. In addition, there is no high risk language such as a bond tail or other wording that creates an additional risk of a claim.

Additional State Requirements: Florida mortgage licenses are processed by the Florida Department of Banking and Finance, Division of Finance. Mortgage broker rules and regulations apply to anyone who solicits mortgage loans for someone borrowing, who accepts an application for a mortgage loan, or who negotiates the terms and conditions of a mortgage loan for a lender of the money. A mortgage broker must be an associate of one broker business that is licensed in the State of Florida. The Florida license allows brokers to place both 1st mortgages and 2nd mortgages. Brokers must be at least 18 years of age and pass a written examination. The exam includes, but is not limited to questions on the Fannie Mae underwriting guidelines and closing procedures, Florida Mortgage Brokerage and Lending Act, the Florida Fair Lending Act, the Patriot Act, all federal lending and housing regulations, complete knowledge of FHA/VA and Conventional mortgages, basic real estate knowledge such as surveys and deeds, plus mathematical calculations pertaining to financing. Prior to the exam, the broker must attend twenty-four hours of classroom instruction at a school that meets accreditation requirements. An additional 14 hours of continuing education classes must be completed two years from obtaining a license. All applicants for the Mortgage Broker License must provide full legally-provided fingerprints for submission to either the Federal Bureau of Investigation or the Florida Department of Law Enforcement. Any actions pending that involve dishonest dealing, fraud, or acts of moral turpitude will be grounds for denial of the license. A nonrefundable application fee of $200 includes the examination. There is an additional fee if the applicant has to retake the examination.

Avoid claims by reading Florida State Web Site: Mortgage Law.

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.

The Florida mortgage broker bond is an easy to obtain requirement. If an applicant can not obtain an approval for this bond, they will likely run into the same predicament when it comes to other states. The best way to get started is to obtain a quote by applying online.