The Tennessee Department of Financial Institutions is the responsible authority for ensuring compliance of mortgage broker, lender, servicer, processor and underwriter licensing. The licensing requirements are established under Tennessee Title 45 Chapter 13. A surety bond is required for each of these licenses.
This surety bond is an agreement between three parties:
- Principal: The mortgage broker professional that needs to get the bond.
- Obligee: The entity requiring the principal to get bonded.
- Surety: The company that issues the bond.
The surety bond provides assurance that someone impacted by the licensed mortgage professional’s violation of the state’s rules can be compensated for related losses. After the surety investigates the claim and determines its validity, it compensates the claimant. The principal is then required to reimburse the surety for the same amount.
Avoiding claims against the bond is financially advantageous to licensed Tennessee mortgage professionals. Upholding the state’s standards and regulations is the essential way to avoid claims.
How Much Does a Mortgage License Bond Cost in Tennessee?
The cost of a Tennessee mortgage broker bond for first-time applicants is between $900 and $9,000. This cost is based on the required bond amount of $90,000 . For first-time mortgage lender and servicer bonds in Tennessee cost between $2,000 and $20,000. The required bond amount for lenders and servicers is $200,000
The cost of the bond is between 1% and 10% of the required bond amount, also known as the bond premium.
Tennessee Mortgage License Bond Cost by Credit Score |
||||
Surety Bond Name |
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
Mortgage Broker Bond |
$90,000 |
$900 - $2,700 |
$2,700 - $4,500 |
$4,500-$9,000 |
Mortgage Lender Bond |
$200,000 |
$2,000 - $6,000 |
$6,000 - $10,000 |
$10,000-$20,000 |
A current mortgage lender and/or mortgage loan broker applying for a license renewal should calculate the total dollar amount of all Tennessee residential mortgage loans they originated during the course of their business.
Tennessee Mortgage Broker Bond Cost by Credit Score |
||||
Amount Originated |
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
Less than $10 millions |
$45,000 |
$450 - $1,350 |
$1,350 - $2,250 |
$2,250 - $4,500 |
More than $10 millions but less than $50 millions |
$90,000 |
$900 - $2,700 |
$2,700 - $4,500 |
$4,500 - $9,000 |
$50 millions or more |
$135,000 |
$1,350 - $4,050 |
$4,050 - $6,750 |
$6,750 - $13,500 |
Tennessee Mortgage Lender Bond Cost by Credit Score |
||||
Amount Originated |
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
Less than $10 millions |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
More than $10 millions but less than $50 millions |
$200,000 |
$2,000 - $6,000 |
$6,000 - $10,000 |
$10,000 - $20,000 |
$50 millions or more |
$300,000 |
$3,000 - $9,000 |
$9,000 - $15,000 |
$15,000 - $30,000 |
Some of our customers are curious about the factors that determine how much a bond costs. We consider the applicant’s credit scores, bond history, industry experience and finances.
How to Get a Mortgage Broker Bond in Tennessee
1. Apply For Your Bond
The process for obtaining a Tennessee mortgage broker license or a license for a lender, servicer, processor or underwriter is quick and straightforward. To get started, apply for your bond using one of these convenient methods:
- Apply for a bond online – Access our bond application online 24/7 to apply at your convenience. The application is brief, and many of our customers complete it within a few minutes.
- Call us at (888)-592-6631 – For personalized assistance, we are available to answer your questions and complete the application with you over the phone.
When applying, you will need:
- Bond name (Tennessee Mortgage License Surety Bond)
- Bond amount ($90,000 or $200,000)
- Email and contact information
2. Get a Quote
After applying for their bond online or by phone, our customers benefit from an instant quote delivered to their inbox. We are available to review your quote with you upon request. If you notice an error, please let us know.
3. Purchase Your Bond
The documents are available for you to sign online. After providing your signature and paying the invoice, you will receive the original bond via email.
Tennessee Mortgage Broker Bond Requirements
When applying for a Tennessee mortgage broker license or a license for a lender, servicer, processor or underwriter, an electronic surety bond must be submitted through the NMLS. The Tennessee Department of Financial Institutions enforces the licensing and surety bond requirements, including the Tennessee Mortgage License Surety Bond.
If you have any questions regarding the requirements, definition and role of mortgage brokers in Tennessee or need licensing info for other mortgage professionals, please contact us.
Recently, a customer reached out to our bond experts to ask about Tennessee mortgage broker bond requirements. One of our knowledgeable representatives answered his questions and ensured that he had all relevant information before applying. He enjoyed the convenience of applying by phone after he got the answers he needed.
How to Get Your Mortgage License in Tennessee
The licensing process for Tennessee mortgage brokers, lenders, servicers, processors and underwriters is completed through the Nationwide Mortgage License System. These items are required when applying for a license:
- Application
- Surety bond
- Financial statements – business and personal
- Credit report
- FBI criminal background check
- Investigative background report
- Business plan
- Registered agent
- Contact employees
- Qualifying individual
- Control person attestation
- AML/BSA Policy
- Certificate of Authority/Good Standing
- Company staffing and internal policies
- Verification of experience
- Management chart
- Organizational chart
- Formation documents
Sources
Nationwide Mortgage Licensing System. (n.d.). Checklist compiler. https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx
Banks and Financial Institutions, Chapter 13 - Residential Mortgage Lending, § 45-13 (n.d.). Justia US Law.
https://law.justia.com/codes/tennessee/title-45/chapter-13/
Tennessee Department of Financial Institutions. (n.d.). Tennessee Department of Financial Institutions.
https://www.tn.gov/tdfi.html
Tennessee Department of Financial Institutions. (n.d.). Mortgage license electronic surety bond form. https://mortgage.nationwidelicensingsystem.org/slr/StateForms/TN_Mortgage%20License%20ESB_v1.pdf
Ready to Get Started?
Get a real-time quote today. You’ll be bonded in minutes, not days!