What is a North Carolina Mortgage License Bond?
Get the information you need about this surety bond right here!
What is a Mortgage License Bond?
All persons applying for a mortgage broker, mortgage lender, or mortgage servicer license must submit a surety bond to the North Carolina Commissioner of Banks.
As part of the bond’s conditions, the mortgage broker, mortgage lender, or mortgage servicer is obligated to comply with any statutes, ordinances, laws, or regulations applicable to their license.
An action can be taken against a surety bond if the mortgage broker, mortgage lender, or mortgage servicer violates the bonded obligations.
This requirement is in pursuance of The Secure and Fair Enforcement Mortgage Licensing Act.
What is the Mortgage License bond amount?
The bond amount will vary per license applicant. It will be based on the originated mortgage loans in North Carolina in a 12-month period ending on December 31.
Mortgage Broker – the minimum bond amount is $75,000
| Bond Amount | Mortgage Loans Originated |
|---|---|
| $125,000 | $10,000,000 – $50,000,000 |
| $250,000 | more than $50,000,000 |
Mortgage Lender or Mortgage Servicer – the minimum bond amount is $150,000
| Bond Amount | Mortgage Loans Originated |
|---|---|
| $250,000 | $10,000,000 – $50,000,000 |
| $500,000 | more than $50,000,000 |
If you know your bond amount now and would like to find out what your bond premium will be, you may get your FREE SURETY BOND QUOTE from us HERE!
Those who have excellent credit scores will be eligible for a very low bond premium, or just 1% of the bond amount!
How can I get a Mortgage License Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
BOND APPLICATION
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
ASSESSMENT
Next, you will be asked to submit a few important information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
To avoid any delays, make sure that you have gathered the right information needed before submitting.
BOND ISSUANCE
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
What are the surety bond conditions?
- The Surety who will issue the bond should be authorized to conduct business in the State of North Carolina
- The North Carolina Office of the Commissioner of Banks should be named as the Obligee
- The licensed mortgage broker, mortgage lender, or mortgage servicer are obligated to conform to the provisions of the Secure and Fair Enforcement Mortgage Licensing Act as well as to the rules and regulations of the North Carolina Office of the Commissioner of Banks
- If the licensee commits a violation, the aggrieved party will be eligible to file a bond claim