Mortgage Broker Bonds: Delaware

The Delaware mortgage broker bond is an easily obtainable bond. Most applicants should qualify for this small license bond, as the language is agreeable to the bonding companies. State regulations are present, but do not seem to infringe on the flow of business. Almost anyone can easily obtain the Delaware bond.

Current Market: The current surety bond market is considered conservative. However, the Delaware mortgage broker bond is considered a low risk bond by many bonding companies. An applicant should have an easy time finding an agent that can place this bond. Some bonding companies are hungrier for mortgage broker bonds than others. Thus, they write them at extremely low rates. Applicants that have difficulties obtaining the Delaware bond, will run into the same obstacles in other states, as there is nothing unordinary about the bond.

Bond Amount: A $25,000 bond amount is rather small in comparison to some of the larger state requirements. While Delaware is not the smallest bond requirement, it probably should be increased. The bond is in place to protect the public from fraud. The sharp rise in the housing market has made for larger loans, which brings larger claims sizes with it.

Bond Form: The Delaware bond form has language that has become a standard for the surety industry. The bond form has an aggregate clause, which makes it so the total amount of claims can not exceed $25,000. The bond also contains language that allows the surety to cancel the bond within 30 days of receipt of a written notice to the state and the principal.

Additional State Requirements: Mortgage broker licenses are processed by Delaware’s Office of the State Bank Commissioner. Mortgage brokers are not required to have an office within the state of Delaware. The broker must designate an individual state resident or another business authorized to transact business within the state to be a registered agent. To apply, a broker business must pay a license fee of $250 for each location and a $250 non-refundable investigation fee. The broker must also submit three business reference letters. Mortgage Broker Licenses are renewed annually; There is an annual assessment fee of $500 for loans maintained inside the state and $1,000 if the loan files are outside of the state.

Special Programs: We offer an exclusive “Instant Approval Online Programâ€? 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 surety bond market is hungry for this class of business. If an applicant has trouble obtaining the Delaware mortgage broker bond, it is a reflection on the risk they present. Programs are available for extreme, high risk applicants. As a last resort, applicants can apply using the Bad Credit Bond Program. There is still the option of posting a letter of credit rather than a bond if an applicant fails to obtain an approval for the high risk program. This is a good alternative to a bond with 100% collateral, but should only be done if the applicant does not qualify for a bond.

Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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