Vermont Mortgage Broker Bond

The Vermont Department of Financial Regulation is the authority on mortgage broker and lender licensing and bond compliance. The rules and regulations for licensing and surety bonds are established in Vermont Code Title 8, Chapter 72 and Chapter 73.

This surety bond is an agreement between three parties: 

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

Mortgage brokers and lenders are required to comply with established regulations. An individual impacted by a violation of these regulations can file a claim against the bond. The principal is required to compensate the surety for the full amount of any paid bond claims. Avoiding claims against the bond is easily accomplished by following the required regulations, according to our customers.

The cost of a Vermont mortgage broker bond is between $250 and $10,000. The required bond amount for mortgage brokers ranges from $25,000 to $100,000, based on loan volume. For mortgage lenders, the bond cost is between $500 and $15,000. The required bond amount ranges from $50,000 to $150,000, based on loan volume.  

The cost of the bond ranges between 1% and 10% of the required bond amount. This is also referred to as the bond rate or bond premium. Use this chart to estimate your bond cost before applying. 

Many of our customers are curious about the factors influencing how much a bond costs. When you apply, we’ll review your credit score, finances, industry experience and bond history to determine your bond cost.

1. Apply For Your Bond

Obtaining a Vermont mortgage broker bond or lender bond is a fast, simple process. First, apply for your bond using your choice of methods. 

1.  Apply for a bond online – Access our online application 24/7. The application is brief and requires only a few minutes of your time.
2. Call us at (888)-592-6631 – For personalized assistance, reach out to our bond experts to apply over the phone. 

When applying, you will need:

• Bond name (Vermont Mortgage Broker Surety Bond)
• Bond amount ($25,000 - $150,000)
• Email and contact information

2. Get a Quote

After applying, you’ll receive a quote via email immediately. Our customers appreciate easy access to our team for questions about their quotes. 

3. Purchase Your Bond

Your bond documents and invoice are accessible online. Before signing the paperwork, get in  touch with us if you identify any errors. Then, sign the documents and pay the invoice. You will receive the original bond via email.

When applying for a Vermont mortgage broker license or a lender license, an electronic surety bond must be submitted through the NMLS. The Vermont Department of Financial Regulation is responsible for overseeing and enforcing licensing for mortgage brokers and lenders. Mortgage brokers are required to submit the Vermont Mortgage Broker Surety Bond when applying for a license. 

Depending on origination volume, a mortgage broker requires a $25,000 to $100,000 surety bond:

The bond requirement for a mortgage lender varies from $50,000 to $150,000:

The bond runs continuously until canceled by the surety. The surety is required to give a 60-day written cancellation notice to the principal and the Vermont Department of Financial Regulation. 

If you have any questions regarding the required bond amount for both mortgage brokers, lenders, etc., please contact us.

One of our customers recently contacted us with a question about the bond amount required. We answered all of his questions about Vermont’s bond requirements and helped him set up his new bond over the phone. He was grateful for how fast and easy the process was.

To complete the licensing process for Vermont mortgage brokers and lenders, you must submit the required documentation to the Nationwide Mortgage License System. The following items are required:

• Application
• Surety bond
• Financial statements
• Bank account
• Credit report
• FBI criminal background check
• Vermont Activity Affidavit
• Remote worker attestation
• Business plan
• Certificate of Authority/Good Standing
• Company staffing and internal policies
• Document samples
• Formation documents
• Management chart
• Organizational chart
• Trust account authorization
• Parent corporation financial statements

Additional items required for lenders include:

• Books and records
• Warehouse line of credit documentation

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

Vermont Department of Financial Regulation. (n.d.). Home. Vermont Department of Financial Regulation.
http://dfr.vermont.gov/

Vermont Legislature. (n.d.). Title 8: Banking and insurance, Chapter 73: Licensed lenders. Vermont Statutes Online.
https://legislature.vermont.gov/statutes/chapter/08/073

Vermont Legislature. (n.d.). Title 8: Banking and insurance, Chapter 72: Mortgage loan originators. Vermont Statutes Online.
https://legislature.vermont.gov/statutes/chapter/08/072

Vermont Department of Financial Regulation. (n.d.). Surety bond: Mortgage broker. Vermont Department of Financial Regulation.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/VT_SURETY%20BOND%20Mortgage%20Broker%20ESB_Shared_V1.pdf