Mississippi Mortgage Broker or Lender Bond

The Mississippi Department of Banking and Consumer Finance is responsible for mortgage broker, lender and loan originators licensing compliance. Under the Mississippi S.A.F.E. Mortgage Act, a surety bond is required for both of these license types. 

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker or lender 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.

Under the Act, mortgage brokers and lenders must abide by the established rules and regulations. A person may file a bond claim in the event he or she was negatively impacted by the broker’s or lender’s unethical behavior. 

Upon validating the claim, the surety will provide compensation to the claimant. The principal is then required to reimburse the surety. Abiding by the Act’s rules is the easiest option for avoiding claims against the bond.

The cost of a Mississippi mortgage broker or lender bond is between $500 and $15,000. The required bond amount for mortgage brokers is between $15,000 and $25,000. For a mortgage lender, the required amount is between $75,000 and $150,000. The bond premium, or total cost, is typically calculated using a bond rate ranging from 1% to 10%.

This chart helps you estimate your bond cost before applying. 

Are you curious about the factors influencing how much a bond costs? Your credit score is a driving factor. In addition, we review bond history, industry experience and finances to determine the bond rate.  

1. Apply For Your Bond

Obtaining a Mississippi mortgage broker or lender bond is a fast, simple process. First, choose between our two convenient application methods. 

1. Apply for a bond online – Access the online bond application at your convenience 24/7. Our customers appreciate how brief the application is, and many complete the form in a couple of minutes. We will deliver an instant quote via email after you apply online. 
2. Call us at (888)-592-6631 – Our bond experts are always happy to speak with our customers and answer their questions. Get in touch with us for personalized assistance and to complete your application by phone. 

When applying, you will need:

• Bond name (Mississippi S.A.F.E. Mortgage Act Bond)
• Bond amount ($15,000 - $150,000)
• Email and contact information

2. Get a Quote

Once we receive your surety bond application, we will send you a fast bond quote by email. We are available to review your bond quote with you, if desired. 

3. Purchase Your Bond

Our customers appreciate how convenient it is to review and sign the bond documents online. If you notice any errors while reviewing the documents, please get in touch with us. We will email your original bond to you after the documents are signed and the invoice is paid. 

When applying for a Mississippi mortgage broker license, you must submit a Mississippi S.A.F.E Mortgage Act Bond, commonly referred to as the “Mississippi mortgage broker bond”, along with your other application documentation. The requirements for a Mississippi mortgage broker bond and license are enforced by the Department of Banking and Consumer Finance. The bond amount varies based on loan volume:

• Mortgage Brokers: $15,000 to $25,000
• Mortgage Lenders: $75,000 to $150,000

The bond must be submitted electronically through the Nationwide Multistate Licensing System (NMLS).

The bond runs continuously, but it may be cancelled by the surety with a 60-day written notice. If you have any questions regarding who needs a bond, the required bond amount, etc., please contact us. 

A new customer contacted us recently to purchase a mortgage broker bond. As this was his first surety bond, he had several questions that our bond experts were happy to answer. With our personalized support and our easy online process, he had the bond he needed quickly.

The licensing process for Mississippi mortgage brokers and lenders is completed through the Nationwide Mortgage License System. To apply, the following items must be submitted online:

• Surety bond
• Criminal background check
• Application
• Organizational chart
• Proof of zoning
• Business plan
• Company’s policies and procedures

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

Mississippi Department of Banking and Consumer Finance. (n.d.). Mississippi Department of Banking and Consumer Finance. https://dbcf.ms.gov/

Nationwide Multistate Licensing System. (n.d.). Mississippi mortgage broker license: Electronic surety bond shared form [PDF]. https://mortgage.nationwidelicensingsystem.org/slr/StateForms/MS_Mortgage%20Broker%20License%20ESB_Shared_v1.pdf

Mississippi Secretary of State. (n.d.). Title 5: Banking and consumer finance. Retrieved December 12, 2024, from https://sos.ms.gov/ACProposed/00019947b.pdf