What is a Louisiana Mortgage Lender Bond?
Know the how-to of this surety bond today!
It is a surety bond that is required of any person who is intending to become a licensed mortgage lender in the State of Louisiana. The applicant must submit a sufficient surety bond along with the license application.
The surety bond will be a way to assure the Commissioner of the Office of Financial Institutions of the State of Louisiana that the bonded mortgage lender will do the following:
- Perform the duties according to the relevant state laws
- The mortgage lender will indemnify any client who has suffered damages due to a breach of contract committed by the mortgage lender
The surety bond prerequisite is in line with Section 6:1088 of the Louisiana Revised Statutes or the Louisiana Secure and Fair Enforcement of Mortgage Licensing Act of 2009.
What is the Mortgage Lender Bond amount?
The bond amount will vary per mortgage lender and will be determined by the Commissioner of the Office of Financial Institutions of the State of Louisiana.
The bond amount will be based on the total dollar amount of the original outstanding principal balance of all residential mortgage loans originated by the mortgage lender. All loans from the previous calendar year that was originated by mortgage loan originators who are employed by the mortgage lender will be included.
$25,000 $0 – $99,999,999
$50,000 $100,000,000 or greater
If you have determined your bond amount, you can get your tailored FREE SURETY BOND QUOTE HERE! You may be eligible to pay as little as 1% of the bond amount!
How can I get a Mortgage Lender Bond?
SEND US A BOND APPLICATION – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete before submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
What are the surety bond conditions?
- The surety bond should be executed by a Louisiana-authorized surety bond agent or company
- The surety bond should be made payable to the State of Louisiana Office of Financial Institutions
- The licensed mortgage lender is obligated to obey the provisions of the Louisiana Revised Statutes or the Louisiana Secure and Fair Enforcement of Mortgage Licensing Act of 2009, as well as the rules and regulations of the State of Louisiana Office of Financial Institutions
- If the licensed mortgage lender violates any statute that resulted in damages, the injured party will be eligible to file a claim on the surety bond
- The surety bond should run concurrently with the license