Mortgage Broker Bond Guide

Why do you need a mortgage broker bond?

You need to obtain a bond to protect your clients. If you do not follow the rules of your state, a claim can be made on your bond. For example, if you approve a client for a loan you know they cannot repay, a claim can be filed.

Top 5 Things You Need To Know

Frequent Questions

No. You will need a bond for each state you are operating in that has a bond requirement. Some states require a bond for each branch location and or loan originator.

Getting licensed in all 50 states can be problematic if you work with the wrong surety agent. Mortgage broker bonds are not insurance for the broker, they are a form of credit. Many mortgage brokers reach their surety credit limitations before being able to get licensed in all 50 states.

However, we can group bonds into bulk underwriting programs which allows brokers to exceed their surety credit limits by 10-20x. By doing so, the majority of our mortgage broker clients can get licensed nationwide.

Yes. Although it will raise the price for the bond significantly.

Our online application will provide you with an instant quote online.

Professional liability insurance protects the broker in the event of a claim. Mortgage broker bonds provide protection for the public, not the broker. In the event of a claim on the bond, the bonding company will look to the broker for reimbursement. Therefore, mortgage brokers bonds are truly a form of credit to the broker and insurance to the public.

Both liability insurance and surety bonding are needed when operating as a mortgage broker. It is best to obtain insurance from a trusted Property & Casualty insurance agent, while surety bond requirements are always best left to those who specialize in them.

No. Some mistakenly refer to these bonds as "mortgage bonds", but that is a different product. These bonds are a type of surety bond in place to guarantee the broker's license. Mortgage bonds are investment bonds backed by real estate or physical property, such as equipment. The mortgage bond market provides investors protection in the event of a default.

Surety Bonds do not protect you

The bond is a form of insurance for your clients, which is why many businesses proudly list that they are bonded on their marketing material. However, you will be required to reimburse the bonding company should a claim be paid out.

Why you must avoid claims at all costs

Fidelity Bonds protect your business

You can protect your business from employee theft and fraud by purchasing a fidelity bond. You can read more in our fidelity bond section.

    Step 1: Select a state

    Step 2: Choose Your Bond

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Bond costs vary by applicant, bond amount, bond type & the agency you choose. You can get a general idea of costs using our Quick Estimate tool to the right or an exact quote instantly online!

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When it comes to surety bond insurance, there is safety in numbers. As the largest volume writer in the country, we are able to obtain the lowest rates from the strongest bonding company partners.

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