Nevada Mortgage Broker Bond

The Nevada Mortgage Lending Division is in charge of licensing compliance for mortgage brokers, companies and servicers. The rules and requirements for mortgage professions are established under NAC 645F. Mortgage brokers, companies and servicers are required to have a surety bond.

This surety bond is an agreement between three parties: 

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

If a mortgage broker engages in fraudulent or unethical acts, anyone impacted by those acts can file a claim. The surety is responsible for investigating claims. If a claim is deemed valid, the surety provides compensation to the claimant.

After the claim is paid, the principal is required to reimburse the surety for the full amount of the claim. The financial impact of a claim on a mortgage broker, company or servicer is substantial, so avoiding claims against the bond is in your interest.

The cost of a Nevada mortgage broker bond and the mortgage company bond ranges from $500 to $7,500. The state requires a $50,000 bond for mortgage brokers with an annual loan volume of $20 million or less and a $75,000 bond for those exceeding $20 million.

The cost of a Nevada mortgage servicer bond ranges from $1,000 to $30,000. Servicers with a mortgage servicing volume of:

• Less than $50 million requires a $100,000 bond.
• $50 million to less than $500 million require a $200,000 bond.
• $500 million or more requires a $300,000 bond.

All mortgage-related bonds in Nevada are overseen by the Nevada Division of Mortgage Lending, ensuring compliance with state laws and protecting consumers from potential misconduct.

The bond premium is in the range of 1% to 10% of the bond amount. This is also referred to as the bond rate or the cost of the bond. You can conveniently estimate the cost of your bond using the chart below. 

A common question we receive is about how we determine how much a bond costs? We consider an applicant’s bond history, industry experience, credit scores and finances.

1. Apply For Your Bond

Obtaining a Nevada mortgage company bond or a servicer bond is an easy, three-step process. The process begins when you apply using one of two convenient methods. 

1. Apply for a bond online – Our online bond form is accessible to you 24/7. The form is short and often only takes a few minutes for our customers to complete.
2. Call us at (888) 592-6631 – If you prefer to submit your application over the phone, our friendly bond experts are happy to help.

When applying, you will need:

• Bond name (Nevada Mortgage Broker Bond, Mortgage Company Surety Bond or Mortgage Servicer License Surety Bond) 
• Bond amount ($50,000 or $300,000)
• Email and contact information

2. Get a Quote

Once we receive a bond application, we deliver a quick quote to our customers by email. We are available to review your quote with you upon request. If you identify any areas that should be revised, please get in touch with us.

3. Purchase Your Bond

To finalize your purchase, pay your invoice and sign the document online. Then, we will email the original bond to you.

To apply for a Nevada mortgage broker license, company license or servicer license, you must provide an electronic surety bond when submitting the other application documents to the NMLS. The authority for mortgage broker, company and servicer licensing is the Nevada Mortgage Lending Division.

Mortgage professionals must use the appropriate bond form based on their license type. The Mortgage Broker Surety Bond is required for brokers who arrange loans between borrowers and lenders. The Mortgage Company Surety Bond applies to companies that fund or originate loans, while the Mortgage Servicer License Surety Bond is for companies that service existing mortgage loans. These are continuous bonds. To cancel a bond, the surety must submit a 60-day written notice to the obligee and the principal.

If you have any questions regarding the required bond amount, the definition and role of mortgage companies in Nevada, etc., please contact us.

We were recently contacted about a mortgage company bond. The customer was uncertain about the bond requirement for a new company.  He appreciated the time and attention we provided, and he took advantage of our online bond application to get a quick quote.

The licensing process for a Nevada mortgage broker, company or servicer is completed through the Nationwide Mortgage License System. When applying, you must provide the following items:

• Application
• Surety bond
• Resident/registered agent
• Bank account
• Qualifying employee
• Financial statements
• Business plan
• Management chart
• Credit report
• Criminal background check
• Formation documents
• Organizational chart
• Business license
• Office lease
• Request for Secretary of State approval memorandum

Additional items required for servicers:

• Non-primary contact employees
• Qualified individual resume
• Designation of Qualified Employee form
• Request for local license approval memorandum

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

Nevada Mortgage Lending Division. (n.d.). Home. Nevada Mortgage Lending Division.
https://mld.nv.gov/

Nevada Mortgage Lending Division. (2017, November 22). Mortgage broker bond form (MLD Form 202). Nevada Mortgage Lending Division.
https://mld.nv.gov/uploadedFiles/mldnvgov/content/Industry/Mortgage_Brokers_and_Mortgage_Agents_-_NRS_645B/MLDForm202-MortgageBrokerBondForm-11-22-2017.pdf

Nevada Legislature. (n.d.). NAC 645F. Mortgage agents, brokers, and lenders. Nevada Legislature.
https://www.leg.state.nv.us/nac/NAC-645F.html

Nationwide Mortgage Licensing System. (n.d.). Nevada mortgage servicer license ESB. Nationwide Mortgage Licensing System.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/NV_Mortgage%20Servicer%20License%20ESB_V1.pdf