Illinois Mortgage Broker Bond

The Illinois Department of Financial and Professional Regulation requires mortgage brokers to comply with the state’s license and bond requirements. The surety bond amount for those engaged in brokering residential mortgage loans is determined by the total loan volume brokered during the previous calendar year. 

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.

Mortgage brokers are required to comply with the rules and regulations established under the Illinois Residential Mortgage License Act.  When a mortgage broker or its loan originators violate those rules, a person may file a claim against the bond. The purpose of the bond is to provide compensation for the claimant’s financial loss related to violations. 

The mortgage broker is required to fully reimburse the surety for the claim amount. To avoid claims, brokers must adhere to the rules outlined in the Act.

The cost of an Illinois mortgage broker bond starts at $500 and ranges up to $15,000. The bond amount required is based on the mortgage broker’s loan volume from the previous year. The range is between $25,000 and $150,000. The cost is often between 1% and 10% of the bond amount. Other names for this amount are the bond premium or bond rate.

This chart will help you estimate your bond cost.

Our customers often ask how much a bond costs. The most significant factor that impacts the bond cost is the applicant’s credit score. Several other factors are reviewed as well, such as the applicant’s past bonding history, several financial factors, and industry experience.

1. Apply For Your Bond

Obtaining an Illinois mortgage broker bond is a fast, simple process. Our clients enjoy the ability to choose from two application methods.

1.  Apply for a bond online – It only takes a few minutes for our customers to apply, and the application is available 24/7. By applying online, we will receive an instant free quote in your inbox. 
2. Call us at (888)-592-6631 – One of our supportive bond experts is happy to answer your questions and can conveniently take your application over the phone. 

When applying, you will need:

• Bond Name (Illinois Residential Mortgage License Bond)
• Bond Amount ($25,000 to $150,000, based on your previous year’s loan volume)
• Email and contact information

2. Get a Quote

After applying for a bond through your preferred method, you will receive a bond to review at your convenience. Our customers appreciate being able to sign the documents on our website.

 3. Purchase Your Bond

Spend a few minutes reviewing the bond documents and invoice for accuracy. If you have questions or find an error, please get in touch with one of our helpful bond associates. After paying the invoice, you will receive the original bond via email. 

The Illinois Department of Financial and Professional Regulation is responsible for licensing those who meet the definition and role of mortgage brokers in Illinois. According to the Residential Mortgage License Act, a mortgage broker is a business that “brokers, funds, originates, services, or purchases Illinois residential mortgage loans.” The Act states that those who engage in these activities must obtain an Illinois mortgage broker license. 

The Residential Mortgage License Bond is a licensing requirement and is submitted through the Nationwide Multistate Licensing System (NMLS). The bond amount, which ranges from $25,000 to $150,000, is based on the loan volume from the previous year.

Our bond experts are available to help you get the required surety bond. If you have any questions regarding who needs a mortgage broker bond, bond amount, etc., please don’t hesitate to contact us. 

One of our applicants recently contacted us for a surety bond, but he was unsure about the bond amount required. We helped him understand the guidelines so that he could get licensed through the Illinois Department of Financial and Professional Regulation. He was thankful for our friendly assistance and happy to complete the licensing process quickly.

The licensing process for Illinois mortgage brokers is completed through the NMLS. These are the requirements for an Illinois 

• Surety bond 
• A fidelity bond
• Bank account information for all company accounts
• A credit report
• FBI criminal background check
• Assumed trade names
• Business entity formation documents
• Certificate of Good Standing
• Audited financial statements

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

Illinois Department of Financial and Professional Regulation. (n.d.). Mortgage broker licensing information.
https://idfpr.illinois.gov/banks/resfin/mbb.html

JW Surety Bonds. (n.d.). Illinois mortgage broker license.
https://www.jwsuretybonds.com/states/illinois/mortgage-broker-license

Illinois General Assembly. (n.d.). Residential Mortgage License Act of 1987 (205 ILCS 635).
https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1196&ChapterID=20

Illinois General Assembly. (n.d.). Administrative code: Section 010:50.
https://www.ilga.gov/commission/jcar/admincode/038/03801050sections.html

Illinois General Assembly. (n.d.). Administrative code: Section 010:50.
https://www.ilga.gov/commission/jcar/admincode/038/03801050sections.html