Tennessee Mortgage Broker Bond

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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:

  1.  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.  
  2. 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

 

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