What is a California Finance Loan Broker Bond?
In the State of California, finance lenders and finance brokers are both required to be licensed. To become licensed, both of these types of organizations must first secure a $25,000 California finance loan broker bond, also known as a finance lender bond and a broker bond.
Who Needs a California Finance Loan Broker Bond?
Finance lenders and brokers are both required to be licensed in the State of California. Dependent on whether the company provides residential lending or brokering services, the licensing requirements vary. Most significantly, brokers are required to file an application with the Nationwide Mortgage Licensing System, whereas residential lenders file with the California Department of Business Oversight.
Why Do I Need a California Finance Loan Broker Bond?
Finance lenders and brokers are required to adhere to the California Finance Lenders Law, which prohibits misrepresentation and fraudulent acts. Additionally, these companies are subject to any regulations as put into effect by the Commissioner of Business Oversight. The California finance loan broker bond protects the public from injury or financial loss as a result of unlawful business practices from a financial lender or financial broker.
How Much Does a California Finance Loan Broker Bond Cost?
The California Department of Business Oversight requires all California-based financial lenders and financial brokers to purchase a $25,000 bond before being licensed. This surety bond is subject to underwriting so that the final purchase price will be dependent upon the owner's credit rating. However, rates may be as low as $250 for your California finance loan broker bond.
Get Started Today!
To receive your licensing to operate as a financial lender or financial broker, you must first purchase a finance loan broker bond. Don’t delay your application.