Texas Mortgage Broker Bond

The cost of a Texas Mortgage Broker Bond starts at around $500. While the full bond amount required is $50,000, most only pay 1% - 10% of that sum to get bonded. 

The percentage that you pay to get this surety bond is known as a bond rate or bond premium. For this type of surety bond, an individual’s bond rate relies heavily on their credit score. 

Beyond credit, other factors that a bonding company may consider are industry experience, a past bonding history with no claims, and business financials. These can especially be beneficial for those with bad credit. 

• For example, Jan’s credit score allotted her a 7% rate on her bond. However, since she has been in the brokerage business for quite some time, we were able to drop her rate to 5%. 

1. Apply For Your Bond

Our online bond application is the quickest and easiest way to apply for a Mortgage Broker Bond. This form can be filled out in minutes, sends an instant bond quote, and it’s available 24/7. 

Information that you will need on hand includes:

• Bond Name (Mortgage Broker Bond)
• Bond Amount 
• Contact Info
• Broker License Number (if available)

2. Get a Quote

Your bond quote will be sent directly to the email you provide. This usually only takes a couple of minutes after you submit your application. Check your Spam Folder. 

3. Purchase Your Bond

The email with your quote will also include instructions for logging into our website. There, you can sign the bond agreement and submit payment. 

As soon as your payment clears, we will send you a printable copy of your bond. Please double-check that all information on the bond is correct. If you do find an error, contact us immediately and we will send you a revised copy.

A Mortgage Broker Bond is often needed to get a Mortgage Broker License through the Texas Department of Savings and Mortgage Lending. It is an alternative to the recovery fund requirement, per the Texas Finance Code. 

This surety bond acts as a financial guarantee. It helps ensure that a broker conducts business ethically and lawfully. If they fail to do so, their bond reimburses the affected party for any losses. 

Every TX Mortgage Broker Bond is an agreement between three parties:

• Principal – the mortgage broker that needs to get bonded.
• Obligee – the organization requiring the bond (Texas Department of Savings and Mortgage Lending).
• Surety – the company issuing and financially backing the bond (ex. JW Surety Bonds).

You can find the Texas Mortgage Broker License application and its requirements through the  Nationwide Mortgage Licensing System (NMLS). 

Have questions about the Mortgage Broker Bond? Contact our surety experts.