Georgia Mortgage Broker Bond

The Georgia Department of Banking and Finance requires mortgage brokers and lenders to be licensed and to have a mortgage broker bond. The required bond amount is $150,000 for brokers and $250,000 for lenders. 

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 (DFPI).
• Surety: The company that issues the bond.

The purpose of a GA mortgage broker bond is to cover the consumer’s financial losses in the event the broker conducts business unethically. These ethical codes are established under the Georgia Residential Mortgage Act. The bond covers the amount of the claim up to the penal sum. 

The principal must compensate the surety for the full amount paid on the claim. Avoiding claims against the bond requires mortgage brokers to consistently meet the state’s ethical standards.

The cost of a Georgia mortgage broker bond starts at $1,500, with prices ranging up to $15,000 for brokers and $2,500 to $25,000 for lenders. The bond cost is a percentage of the required bond amount, typically ranging from 1% to 10%. This percentage is referred to as the bond rate, while the resulting amount is referred to as the bond premium. 

Mortgage brokers must submit a $150,000 surety bond, while mortgage lenders require a $250,000 surety bond when applying for a license. They must maintain the bond as a condition of licensing. Use this chart to estimate your bond cost before applying:

The primary factor that determines how much a bond costs is the applicant’s credit score. However, other factors are considered as well, including past bonding history, industry experience, and other financials.

1. Apply For Your Bond

Our clients appreciate how quick and easy it is to obtain a Georgia mortgage broker bond. Use either of these methods to apply.

1.  Apply for a bond online – The short application can be completed within a few minutes, and you have access to it 24/7. By applying online, we will email you an instant free quote. 
2. Call us at (888)-592-6631 – Speak with a bond expert who will answer your questions and take your application over the phone. 

When applying, you will need:

• Bond Name (Georgia Mortgage Broker Bond)
• Bond Amount ($150,000, $250,000)
• Email and contact information

2. Get a Quote

After applying, you will receive a bond quote by email. If you are pleased with the quote, visit our website to sign the bond documents. 

3. Purchase Your Bond

In addition to sending you the bond documents, we will email the invoice to you. Take a moment to review the invoice and documents for accuracy. If you find incorrect information, please contact us as soon as possible. After paying the invoice, you will receive the original bond via email.  

The Georgia mortgage broker bond requirements apply to all individuals or companies who meet the definitions of mortgage brokers or lenders. According to O.C.G.A. § 7-7-1, a mortgage broker is defined as a person or company that solicits, processes, places, or negotiates mortgage loans for others, offers these services, or closes loans in the broker’s name using funds from others. A mortgage lender, on the other hand, is a person or company that makes, originates, underwrites, holds, purchases, or services mortgage loans.

The Georgia Department of Banking and Finance maintains the requirements for mortgage broker licenses and bonds. Georgia mortgage broker license applications and bonds must be submitted through the Nationwide Multistate Licensing System (NMLS).

If you have any questions regarding who needs a mortgage broker bond, bond amount, etc, please don’t hesitate to contact us.

Recently, we had the privilege of assisting a client in obtaining her Georgia mortgage broker license, enabling her to launch her business in the state. From the outset, she was eager to meet all regulatory requirements but needed guidance on navigating the licensing and bonding process. We worked closely with her to ensure she understood the necessary steps, including securing the correct bond amount and submitting it through the appropriate channels.

The licensing process for Georgia mortgage brokers has multiple steps. These include:

• Establish an account with the NMLS.
• The registered agent must have a physical address in Georgia and be available for service of process within the state.
• Submit to a criminal background check. 
• Provide authorization for a credit report. 
• Certificate of Authority: State-issued and approved document that demonstrates authorization to do business in Georgia.
• Surety Bond
• Mortgage broker license fee: $650 plus additional NMLS fees (brokers only)
• Mortgage lender license fee: $1150 plus additional NMLS fees (lenders only)

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

Georgia Department of Banking and Finance. (n.d.). How do I apply for a mortgage license? https://dbf.georgia.gov/mb-brokers-lenders-and-originators/how-do-i-apply-mortgage-license

Georgia General Assembly. (n.d.). § 7-1-10032. Financial requirements for licensing and registration; bond requirements. In Code of Georgia. https://casetext.com/statute/code-of-georgia/title-7-banking-and-finance/chapter-1-financial-institutions/article-13-licensing-of-mortgage-lenders-and-mortgage-brokers/section-7-1-10032-financial-requirements-for-licensing-and-registration-bond-requirements

State Regulatory Registry LLC. (n.d.-a). Georgia mortgage lender license/registration: New application checklist. Nationwide Multistate Licensing System & Registry. https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/GA-Mtg-Lender-License-Registration-NewApp-Checklist.pdf

State Regulatory Registry LLC. (n.d.-b). Georgia mortgage broker/processor license/registration: New application checklist. Nationwide Multistate Licensing System & Registry.
https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/GA-Mtg-Broker-Processor-License-Registration-NewApp-Checklist.pdf