New Jersey Mortgage Broker Bond

The New Jersey Department of Banking and Insurance is the authority on mortgage broker, lender, correspondent lender and servicer licensing. The licensing requirements for mortgage brokers, lenders and correspondent lenders are defined under New Jersey Statutes Title 17. The Mortgage Servicing License Act establishes the licensing and bond requirements for servicers. 

This surety bond is an agreement between three parties: 

• Principal: The entity or person that needs to get the bond.
• Obligee: Entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

Mortgage professionals must abide by the established rules and regulations. If an individual is impacted by unethical actions, he or she may file a claim by contacting the surety. After investigating and validating the claim, the surety will pay the claimant.

The principal is responsible for compensating the surety in full. Avoiding claims against the bond is as straightforward as following the required regulations, according to our customers.

The cost of a New Jersey mortgage broker bond, lender bond and correspondent lender bond is between $1,500 and $30,000. The cost of a mortgage servicer bond is between $1,000 and $10,000. 

The bond premium, or total cost, is calculated by applying a bond rate, typically ranging from 1% to 10% to the required bond amount. This determines the final amount a business or individual must pay to obtain the bond.

 This chart helps you estimate your bond cost before applying:

Many of our customers want to know what affects how much a bond costs? In addition to your credit scores, we consider your bond history, finances and industry experience.

1. Apply For Your Bond

Obtaining a New Jersey mortgage broker bond or a bond for a lender, correspondent lender or servicer is a quick process. First, apply using one of our two convenient methods.

1. Apply for a bond online – The online application is accessible 24/7, and it only takes a couple of minutes to complete. An instant bond quote will be emailed to you. 
2. Call us at (888)-592-6631 – Some of our customers prefer to apply over the phone. Our friendly bond experts are ready to provide you with personal assistance.

When applying, you will need:

• Bond name (New Jersey Residential Mortgage Broker, Lender or Correspondent Lender Bond or New Jersey Loan Servicers Mortgage Licensing Act Surety Bond)
• Bond amount ($100,000 - $300,000)
• Email and contact information

2. Get a Quote

Our customers benefit from a quick response after applying. After receiving your instant bond quote via email, get in touch with us if you need assistance reviewing it. 

3. Purchase Your Bond

Our customers enjoy the convenience of reviewing and signing their bond documents online. Please reach out to us if you notice an error before signing the paperwork. After you have signed the documents and paid the invoice, you will receive the original bond document via email.  

To apply for a mortgage broker, lender, or correspondent lender license in New Jersey, applicants must submit a New Jersey Residential Mortgage Broker, Lender, or Correspondent Lender Bond along with other required documentation. For those seeking a servicer license, the New Jersey Loan Servicers Mortgage Licensing Act Surety Bond is required. The licensing process is managed by the New Jersey Department of Banking and Insurance (DOBI).

All bonds must be submitted electronically through the Nationwide Multistate Licensing System (NMLS). Your surety bond will remain in full force until it is cancelled. The surety must send a 30-day cancellation notice in writing to the obligee and the principal to cancel the bond.

If you have any questions regarding who needs a bond, the required bond amount, etc., please contact us. 

One of our customers recently got in touch with us about the type of bond he needed. He appreciated the personalized attention he received from our bond specialists. After getting clarification, he quickly applied online and got an immediate quote.

To complete the licensing process for New Jersey mortgage brokers, lenders, correspondent lenders and servicers, you must provide all required documentation to the Nationwide Mortgage License System. The required items include:

• Application
• Surety bond
• Registered agent
• Qualifying individual
• Financial statements
• Entity formation documents
• Certificate of Authority/Good Standing
• Organizational chart
• Certificate of Office Suitability
• FBI and state criminal background check 
• County recording office documentation
• Location of Records Agreement
• Management chart
• Credit report
• Legal name/status documentation
• Memorandum of tax certification
• Verification of Experience
• Company staffing and internal policies
• Document samples
• Business plan
• AML/BSA Policy (for lenders and correspondent lenders)

The following items are also required for correspondent lenders:

• Contact employees 
• Company form
• Bank account
• Control person attestation 
• Warehouse line of credit documentation

The following items are also required for servicers:

• Errors and omissions insurance
• Fidelity bond

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

New Jersey Department of Banking and Insurance. (n.d.). Residential mortgage lender and residential mortgage broker surety bond. New Jersey Department of Banking and Insurance.
https://www.nj.gov/dobi/banklicensing/rmla/suretybond.pdf

New Jersey Department of Banking and Insurance. (n.d.). Mortgage servicer licensee surety bond form. New Jersey Department of Banking and Insurance.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/NJ_MSLA%20Bond%20Form%20ESB_V1.pdf

New Jersey Department of Banking and Insurance. (n.d.). Home. New Jersey Department of Banking and Insurance.
https://www.nj.gov/dobi/

New Jersey Legislature. (2019). P.L. 2019, c.65: Mortgage servicing licensing act. New Jersey Legislature.
https://pub.njleg.gov/bills/2018/PL19/65_.PDF

Casetext. (n.d.). New Jersey Statutes: Title 17 - Corporations and institutions for finance and insurance. Casetext.
https://casetext.com/statute/new-jersey-statutes/title-17-corporations-and-institutions-for-finance-and-insurance