Virginia Mortgage Broker & Lender Bond

The Virginia Bureau of Financial Institutions is the authority for mortgage broker and lender licensing. The mandates for mortgage broker and lender licensing are established under Virginia General Assembly Title 6.2, Chapter 16. Per this chapter, licensees must comply with the requirement for a surety bond. 

This surety bond is an agreement between three parties: 

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

The purpose of the surety bond is to ensure compensation to those who are impacted by a mortgage broker’s or lender’s violation of the rules and regulations. After a claim is validated, the surety provides compensation to the claimant. The principal is required to reimburse the surety company for the full amount of the claim. 

Avoiding claims against the bond is financially beneficial to lenders and brokers. This is easily accomplished by following the required regulations, according to our customers.

The cost of a Virginia mortgage broker bond typically ranges from $250 to $2,500, based on a required bond amount of $25,000. For lenders, the bond cost falls between $500 and $5,000, with a required bond amount of $50,000. 

Mortgage loan originators, who are not exclusive agents or employees of a mortgage broker or lender, must also obtain a bond. The cost for these bonds ranges from $250 to $15,000, depending on the loan amounts. These bond amounts range from $25,000 to $150,000.

The bond rate typically ranges from 1% to 10%, which determines the bond premium or total cost.

Often, our valued customers ask us about the factors that determine how much a bond costs. These factors include the applicant’s industry experience, finances, credit score and bond history.

1. Apply For Your Bond

The process for obtaining a Virginia mortgage broker bond or lender bond has three easy steps. Our customers enjoy the option of choosing between two application options. 

1.  Apply for a bond online – Take advantage of our online application to apply at any time that is best for you. Our application is brief, so our customers usually can complete this step in only a few minutes.
2. Call us at (888)-592-6631 – If you have questions or prefer to apply by phone, our friendly bond specialists are available to help. 

When applying, you will need:

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

2. Get a Quote

Regardless of how you prefer to apply, you will receive an instant bond quote from us via email. Our bond experts are happy to review your quote with you, if desired. If you see any errors while reviewing the bond, please let us know.

3. Purchase Your Bond

Our customers appreciate the ability to sign the documents online. After submitting the signed documents and paying your invoice, you will receive the original bond in your inbox.

To obtain a Virginia mortgage broker or lender license, applicants must submit an electronic surety bond through the Nationwide Multistate Licensing System (NMLS). This Mortgage Lender/Broker Surety Bond is a mandatory requirement for licensing and ensures compliance with Virginia financial regulations. The licensing process and bond requirements are overseen by the Virginia Bureau of Financial Institutions.

While this is a continuous bond, it may be canceled by the surety. The surety must provide a 90-day cancellation notice in writing to the principal and obligee.

If you have any questions regarding the definition and role of mortgage brokers and lenders in Virginia, the required bond amount, etc., please contact us. 

A new customer recently contacted us for more information about Virginia’s requirements for a mortgage broker bond. After he got the clarification he needed from our knowledgeable bond experts, he took advantage of the online application to begin setting up the bond he needed.

The licensing process for Virginia mortgage brokers and lenders is completed through the Nationwide Mortgage License System. When applying, you must submit the following items:

• Application
• Surety bond
• Registered agent
• Business and personal financial statements
• Credit report
• FBI and state criminal background check
• Business plan
• Certificate of Authority/Good Standing
• Management chart
• Organizational chart
• Formation documents
• Business references
• Bank reference
• For lenders, evidence of at least $200,000 in available business funds

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

Virginia State Corporation Commission. (n.d.). Bureau of Financial Institutions. Virginia State Corporation Commission.
https://www.scc.virginia.gov/pages/Bureau-of-Financial-Institutions

Virginia General Assembly. (n.d.). Title 6.2. Financial institutions and services, Chapter 16. Virginia Residential Property Disclosure Act. Virginia Law. https://law.lis.virginia.gov/vacode/title6.2/chapter16/

Nationwide Mortgage Licensing System. (n.d.). Virginia surety bond (CCB-8814).
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/VA3-Surety%20Bond%20CCB-8814.pdf