Question:

What is a Mortgage Broker Surety Bond?

Answer:

Mortgage Broker Surety Bond is a bond that has to be obtained by the applicant prior to obtaining Mortgage Broker license. The purpose of the Bond is to protect consumers from wrongful practices exercised by the Mortgage Broker.

There are different Surety Bonds for the mortgage industry - Mortgage Broker Surety Bonds, Bonds for Mortgage Bankers or Correspondent Lenders. Obtaining a Mortgage Broker Surety Bond is usually required by the State Department of Banking.

Mortgage Broker Surety Bond Amount

The Mortgage Broker Surety Bond requirement will be different according to state law. For example, in some state the minimum Surety Bond amount will be $10,000 and will hold for one year; for other states, the minimum Mortgage Broker Surety Bond will be $50,000 and will be valid for 2 years. Check what the particular requirements for a Mortgage Broker Surety Bond are in your state.

The Mortgage Broker Surety Bond amount is usually dependant on the mortgage loan volume served by the licensee.

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