What is an Indiana Loan Broker Bond?
Know why this surety bond matters to your business and how to easily apply today!
A surety bond is a standard licensure requirement for persons who are intending to become loan brokers in the State of Indiana.
A surety bond will serve as a guarantee to the state that the loan broker will fulfill his or her obligations according to the statutes that cover the industry.
It will also be conditioned that the surety bond will indemnify any person who will be harmed by the potential wrongdoings committed by the licensed loan broker.
By filing a case against the surety bond, the Obligee may recover the losses incurred on behalf of the beneficial recipient or the injured party.
This requirement is enforced by the Secretary of State, Securities Division of the State of Indiana in pursuance of Section 23-2-5-5 of the Indiana Code.
What is the Loan Broker Bond amount?
The amount will depend on the loan broker’s total amount of residential mortgage loans originated during the previous calendar year.
Originated Residential Mortgage Loans in the Previous Year
- Less than $5,000,000 = $50,000
- $5,000,000 – $20,000,000 = $60,000
- More than $20,000,000 = $75,000
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?
To secure this type of bond, the loan broker license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate your credit score to see if you are eligible for bonding.
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Indiana
- The surety bond should be made payable to the State of Indiana
- The licensed loan broker must comply with the provisions of the Indiana Loan Broker Act or Section 23-2-5 of the Indiana Code, as well as the rules and regulations of the Secretary of State, Securities Division of the State of Indiana
- If the licensed loan broker commits a valid violation, the aggrieved party will be eligible to file a claim against the surety bond
Ready to apply? Call us and get bonded today!