The Delaware Office of the State Bank Commissioner is the responsible authority for mortgage broker and lender licensing. Under Delaware Code Title 5, a condition of licensing is a surety bond.
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 and backs it financially (Ex. JW Surety Bonds).
Mortgage brokers and lenders must abide by the rules and regulations defined in Title 5 of the Delaware Code. A person may file a claim against the surety bond in the event of a loss related to a violation of the rules and regulations.
If the surety validates the claim, it compensates the claimant accordingly. The principal is required to reimburse the surety for the full amount of the claim. Abiding by the regulations is the best way of avoiding claims against the bond.
How Much Does a Delaware Mortgage Broker Bond Cost in Montana?
The cost of a Delaware mortgage broker bond is between $250 and $2,500. Licensed mortgage brokers are required to have a $25,000 surety bond. A mortgage lender bond costs between $500 and $20,000. Licensed mortgage lenders must have a surety bond in the amount of $50,000 to $200,000.
The cost of the bond is between 1% and 10% of the required bond amount. This is also sometimes referred to as the bond premium or bond rate. Estimate your bond cost using this chart before applying.
Delaware Mortgage Broker and Lender Bond Cost by Credit Score |
|||
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
Mortgage Broker: $25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
Mortgage Lender: $50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
What factors impact how much a bond costs? Credit scores play a significant role in determining the cost of a surety bond. In addition, the applicant’s bond history, finances and industry experience are reviewed.
How to Get a Mortgage Broker or Lender Bond in Delaware
1. Apply For Your Bond
Obtaining a Delaware mortgage broker or lender bond is a quick and easy process. To begin, apply for your bond through one of our two convenient methods.
- Apply for a bond online – Our application is available online 24/7, and it only requires a few minutes of your time. After submitting the application, you will instantly receive a quote by email.
- Call us at (888)-592-6631 – If you have questions before applying or prefer to apply over the phone, our bond specialists are available to help.
When applying, you will need:
- Bond name (Delaware Mortgage Broker Surety Bond or Delaware Licensed Lender Surety Bond)
- Bond amount ($25,000 - $200,000)
- Email and contact information
2. Get a Quote
Our customers always benefit from a fast response from us. We will email your quote immediately, and we can review it with you upon request.
3. Purchase Your Bond
Your bond documents and invoice are online for you to review. As you review the paperwork, please get in touch with us if you spot an error. After signing the documents and paying the invoice, you will receive the original bond via email.
Delaware Mortgage Broker and Lender Bond Requirements
When applying for a Delaware mortgage broker license or a mortgage lender license, a surety bond must be provided with the other application items. The Delaware Office of the State Bank Commissioner is the licensing authority, and license applications are processed by the Nationwide Multistate Licensing System (NMLS).
A mortgage broker is defined as someone who is compensated for soliciting, arranging, or negotiating loans on behalf of a lender but is not employed by them. Brokers must use the $25,000 Delaware Mortgage Loan Broker Surety Bond.
A mortgage lender, defined as anyone making more than five mortgage loans in 12 months, must use the Delaware Licensed Lender Surety Bond. Bond amounts range from $50,000 to $200,000 based on business value, advance fees, and fee holding periods before loan funding.
These bonds are continuous or run concurrently with the license and remain active until canceled by the surety. However, the surety can cancel the bond by providing a 30-day written notice to the obligee and the principal.
If you have any questions about bond requirements or the application process, please contact us.
One of our customers recently reached out to us for a mortgage lender bond but was not sure about the bond amount required. She spoke with one of our helpful bond specialists for clarification and then took advantage of our online application to set up the required bond for her license. She appreciated the personalized attention she received and the ability to set up her new bond fast.
How to Get Your Mortgage Broker or Lender License in Delaware
To complete the licensing process for Delaware mortgage brokers and lenders, several items must be submitted to the Nationwide Mortgage License System. These are the licensing requirements:
- Application
- Surety bond
- Bank account
- Minimum capital ($50,000 for mortgage brokers, $100,000 for mortgage lenders)
- FBI criminal background check
- Credit report
- Financial statements
- Business plan
- Document samples
- Certificate of Authority/Good Standing
- Management chart
- Organizational chart
- Supervisory assessment disclosure
- FinCen disclosure
- Employees’ contact information (for lenders)
- Financial statements (for lenders)
- Business survey (for lenders)
Sources
Nationwide Mortgage Licensing System. (n.d.). Checklist compiler. https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx
Delaware Office of the State Bank Commissioner. (n.d.). Home. Delaware Office of the State Bank Commissioner. https://banking.delaware.gov/
Delaware Office of the State Bank Commissioner. (2017). Mortgage loan originator surety bond form. Delaware Office of the State Bank Commissioner. https://banking.delaware.gov/wp-content/uploads/sites/73/2017/02/mbbond.pdf
Delaware Office of the State Bank Commissioner. (2017). Licensed lender surety bond form. Delaware Office of the State Bank Commissioner. https://banking.delaware.gov/wp-content/uploads/sites/73/2017/02/llbond.pdf
Delaware General Assembly. (n.d.). Title 5: Banking. Delaware Code Online. https://delcode.delaware.gov/title5/index.html
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