North Carolina Mortgage Broker Bond

The North Carolina Office of the Commissioner of Banks is responsible for ensuring compliance with the state’s mortgage licensing requirements. The minimum bond amounts begin at $75,000 for a broker and $150,000 for a lender or servicer. 

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.

The North Carolina Secure and Fair Enforcement Mortgage Licensing Act, or S.A.F.E. Act, establishes the ethical code for licensed mortgage brokers. If a mortgage broker violates the ethical rules, the affected party may file a claim against the bond. If the claim is approved, the surety company will compensate the claimant appropriately.

The principal, or mortgage broker, must reimburse the surety for the full amount. Avoiding a claim against the bond is as simple as abiding by the established ethical codes in the S.A.F.E. Act.

The cost of a North Carolina mortgage broker bond ranges from $75,000 to $250,000, depending on loan volume. For mortgage lenders and servicers, bond amounts fall between $150,000 and $500,000, with costs varying from $1,500 to $50,000, also based on loan volume. The bond rate typically ranges from 1% to 10%, which determines the bond premium or total cost.

When our customers contact us for the first time, they often want to know how much a bond costs. The cost of a surety bond depends on the applicant’s credit score. In addition, factors like industry experience, finances and past bonding history are taken into account.

1. Apply For Your Bond

Obtaining a North Carolina mortgage broker bond is a quick, straightforward process. Our clients appreciate the ability to choose between two convenient application options. 

1.  Apply for a bond online – Our bond application is available online 24/7, and it only takes a couple of minutes to complete. If you apply online, you will benefit from an instant, free quote delivered by email.  
2. Call us at (888)-592-6631 – You can also apply for your mortgage broker bond by calling us directly. One of our helpful bond associates will happily answer your questions and take your application. 

When applying, you will need:

• Bond name (North Carolina Mortgage Broker Bond)
• Bond amount ($75,000, $125,000, $150,000, $250,000, $500,000)
• Email and contact information

2. Get a Quote

You will benefit from a fast bond quote after you apply online or by phone. If you have questions about the quote, you can easily reach us for assistance.  

3. Purchase Your Bond

The bond documents are available for you to sign online when you are ready to finalize your purchase. Before signing the paperwork, review them for accuracy. Please let us know if you spot an error. Once you have paid the invoice, we will email the original bond to you.

The requirements for a North Carolina mortgage broker bond are enforced by the North Carolina Office of the Commissioner of Banks. This bond is mandatory for individuals or entities applying for a mortgage license in the state. The definition and role of mortgage brokers, lenders and servicers in North Carolina is established under N.C. General Statutes § 53-244.030.

As a licensing requirement, the Mortgage Broker Surety Bond must be submitted electronically via the Nationwide Multistate Licensing System (NMLS).

The required bond amount for mortgage brokers in North Carolina depends on whether they have originated mortgage loans in the state during the 12-month period ending December 31. The bond requirement ranges from $75,000 to $250,000.

Mortgage lenders and servicers must obtain a bond ranging from $150,000 to $500,000, determined by their loan volumes.

The Office of the Commissioner of Banks requires the bond to remain in place as a condition of licensing.

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

Recently, we had the privilege of assisting a client in obtaining her North Carolina mortgage broker license, empowering her to start her business in the state. From the beginning, she was determined to comply with all regulatory requirements but needed support navigating the licensing and bonding process. We collaborated closely with her, guiding her through every step, including securing the correct bond amount and ensuring it was submitted through the appropriate channels.

The licensing process for North Carolina mortgage brokers is completed through the NMLS. These items are required to apply for a license: 

• Surety Bond form
• Licensing fee
• Financial statements
• Completed Company Form
• Individual Form and resume
• Other trade names
• Resident or registered agent
• Credit report
• FBI criminal background check
• Anti-Money Laundering/Bank Secrecy Act Policy
• Business plan
• Certificates of Authority and Good Standing
• Business formation documents
• Management/organization chart
• Lease agreement
• Books and records
• Branch manager agreement

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

North Carolina Office of the Commissioner of Banks. (n.d.). North Carolina Office of the Commissioner of Banks.
https://nccob.nc.gov/

North Carolina Office of the Commissioner of Banks. (n.d.). Mortgage loan surety bond (MLA02) [PDF]. https://nccob.nc.gov/financial-institutions/mortgage/mla02mortgagebrokersuretybondpdf/download?attachment

North Carolina General Assembly. (n.d.). North Carolina Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act of 2009 [PDF]. https://ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_53/Article_19B.pdf

North Carolina General Assembly. (n.d.). North Carolina General Statutes § 53-244.030: Definitions [PDF]. https://www.ncleg.gov/EnactedLegislation/Statutes/PDF/BySection/Chapter_53/GS_53-244.030.pdf