What is an Illinois Loan Broker Bond?
Start assisting your clients in procuring the right loan through this surety bond!
Every loan broker who conducts a loan brokerage transaction where the loan is contingent on the Truth-in-Lending Act is required to procure a surety bond.
The surety bond is also required for every person who is applying for registration before assisting the client in making a loan from a third party or promising to procure a loan.
The surety bond must be maintained with the appropriate amount during the registration period.
The purpose of the surety bond is to guarantee the compliance of the licensed loan broker to the provisions of the Illinois Loan Brokers Act of 1995.
A breach of the Act that is committed by the licensed loan broker will be a ground for a bond claim. When this happens, the person who has been harmed will be eligible to recover the amount lost through the bond.
What is the Loan Broker Bond amount?
The bond amount is $25,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium or just 1% of the bond amount!
How can I get a Loan Broker Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate your submitted documents to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Illinois
- The surety bond should be made payable to the People of the State of Illinois
- The form on which the bond will be written should be approved by the Illinois Secretary of State
- The licensed loan broker is obligated to obey the provisions of the Illinois Loan Brokers Act of 1995, as well as the rules and regulations of the Illinois Secretary of State
- If the licensed loan broker commits a violation, the aggrieved party will be eligible to file a claim against the surety bond up to its penal sum