Arkansas Mortgage Broker Bond

The Arkansas Securities Department is the authority on licensing compliance for mortgage brokers, bankers and servicers. You can apply for a combination license or one of these licenses individually. For all licenses, an Arkansas mortgage broker bond, also known as Arkansas Fair Mortgage Lending Act Bond is required for licensing.

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker that needs to get the bond.
• Obligee: Entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

The Fair Mortgage Lending Act establishes the standards for licensees. When a person is financially impacted by the unethical behavior of a licensee, that person may file a claim against the bond. If the claim is validated, the surety company compensates the claimant. 

The licensee is financially responsible for the expense and must reimburse the surety accordingly.

The cost of an Arkansas mortgage broker bond, as well as banker and servicer bonds, ranges from $1,000 and $20,000. The required bond amount is between $100,000 and $200,000, depending on the previous year's loan activity. The bond rate typically ranges from 1% to 10%, determining the bond premium or total cost.

This chart helps you estimate your bond cost before applying.

Are you wondering what factors impact how much a bond costs? Your credit score is one of several factors that are reviewed. Other factors are your industry experience, finances and bond history.

1. Apply For Your Bond

Obtaining an Arkansas mortgage broker bond is easy to do. To begin, choose from our two application methods.

1.  Apply for a bond online – Our bond application is available for you to fill out 24/7. Our customers often can complete the application in only a few minutes. After completing the application, you will receive an instant quote in your email.  
2. Call us at (888)-592-6631 – If you have questions or prefer personal assistance when you apply for your surety bond, we are happy to support you over the phone. 

When applying, you will need:

• Bond name (Fair Mortgage Lending Act Surety Bond)
• Bond amount ($100,000, $150,000, $200,000)
• Email and contact information

2. Get a Quote

Our customers always benefit from a fast bond quote regardless of their preferred application method. As you review your bond quote, please contact our bond experts if you have questions. 

3. Purchase Your Bond

For your convenience, you can review and sign the bond documents online. Before doing so, review the documents carefully, and let us know if you see an error. After paying the invoice and completing the paperwork, we will email the original bond to you.

The requirements for an Arkansas mortgage broker bond as well for bankers and servicers are enforced by the Arkansas Securities Department. The Fair Mortgage Lending Act Bond must be provided when applying for an Arkansas mortgage broker license, a mortgage banker license or a mortgage servicer license. The bond must be submitted electronically to the Nationwide Multistate Licensing System (NMLS).

If you have any questions regarding who needs a bond, the required bond amount, etc., please contact us.

One of our new customers contacted us recently and was unsure about the type of bond needed. We answered her questions thoroughly and helped her set up her new surety bond over the phone. She enjoyed receiving personalized assistance from our knowledgeable bond experts. 

The licensing process for Arkansas mortgage brokers, bankers and servicers is through the Nationwide Mortgage License System. To apply, you must submit: 

• A financial statement
• Surety bond form
• Other trade names
• Registered agent
• Primary contact employees
• A qualifying individual
• An Anti-Money Laundering and Bank Secrecy Act program 
• A business plan
• Certificate of Authority/Good Standing
• Company staffing and internal policies
• Entity formation documents
• Management chart
• Organization chart
• MLO license sponsorship, if applicable

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

Arkansas Securities Department. (n.d.). Arkansas Securities Department.
https://securities.arkansas.gov

Nationwide Multistate Licensing System. (n.d.). Arkansas surety bond form (AR1) [PDF].
https://mortgage.nationwidelicensingsystem.org/slr/stateforms/ar1-surety-bond-form.pdf

Arkansas Securities Department. (2023). Fair Mortgage Lending Act [PDF].
https://securities.arkansas.gov/wp-content/uploads/2023/08/2023-Fair-Mortgage-Lending-Act.pdf