What is the Kansas Supervised Lender Mortgage Company Bond?
The Kansas Supervised Lender/Mortgage Company Bond gives concrete assurance that whenever borrowers and consumers are abused in the process of obtaining loans, they can be remunerated for the damage done to them.
The bond likewise inhibits the lender or mortgage broker in making loan approvals to borrowers who do not have the capacity to pay back loans obtained. This bond will also stop him/her from convincing clients to join him/her in fraudulent activities during the application process.
Also, because of the bond’s existence, brokers and lenders are constrained from pressuring any prospective borrower into availing of high-risk loans with high-interest rates, from charging added fees and redundant charges, and from targeting vulnerable customers. It is also a manifestation of a serious undertaking on the part of the mortgage broker to operate the business according to the mandates of the Uniform Consumer Credit Code and the Kansas Mortgage Business Act.
Why you need the Kansas Supervised Lender Mortgage Company Bond
You need this bond because it will add prestige to your name and your company will be known as a trustworthy lender and mortgage brokering organization. It can also make your firm look very attractive to customers because they will naturally want to hire the services of a supervised lender and mortgage broker firm they can trust.
More details about the Kansas Supervised Lender Mortgage Company Bond
This bond remains enforceable during the period of registration. If the surety company opts to terminate the bond, 30 days’ notice must be provided to the OSBC before the actual date of cancellation.
How much is the cost of the Kansas Supervised Lender Mortgage Company Bond?
The mandatory amount of Mortgage Company or Supervised Lender bonds fluctuates and will depend on how the lender/broker makes the loans available to borrowers, that is, whether the loan is secured by an interest in real property or contracts for deeds. For this type of lender/broker, the bond amount is $250,000. All other types of brokers/lenders must post a bond of $100,000.
An additional $25,000 bond must also be posted for every added licensed location of the business.
Similarly, the amount of the bond premium will depend greatly on the lender’s/broker’s credit score and financial history. If he/she has problematic transactions in the past, he/she may be required to pay a higher premium. The bond premium can also be influenced by past business performance, personal profile, and standing within the business community. Being convicted of a crime even if it happened decades ago, also matters in the determination of how much premium will be paid.
How do I get a Kansas Supervised Lender Mortgage Company Bond?
Getting a Kansas Supervised Lender/Mortgage Company Bond is effortless.
A legitimate and professional surety agency is the most stress-free method and the most inexpensive route to getting hold of a Kansas Supervised Lender/Mortgage Company Bond. Let proficient surety experts demonstrate to you how a professional surety company’s capable methods and well-organized practices diminish your expenditures. No more mix-ups and miscalculations. Call us to start the process NOW!