What is an Ohio Mortgage Broker Bond?

Know the who, what, and how of this bond today!

 

In pursuant of the Ohio Mortgage Broker Act or Chapter 1322.05 of the Ohio Revised Code, the Ohio Department of Commerce’s Division of Financial Institutions requires mortgage broker licensees and registrants to post a surety bond.

 

Loan originators and exempt entities that employ loan originators who are licensed under the Mortgage Broker Act (OMBA) are also required to furnish a surety bond.

 

A Mortgage Broker is a person who, for compensation, does the following:

  • Assists a buyer in obtaining a mortgage.
  • Provides financial and mortgage information to a mortgage broker or a person who makes a residential mortgage loan.
  • Engaged in table-funding or warehouse-lending mortgage loans.


What are the bond amounts?

Registered Mortgage Brokers and Exempt Entities listed in Chapter 1322.01(G)(2) of the ORC:

  • The bond amount is 0.50% of the aggregate loan amount of residential mortgage loans from the previous calendar year.
  • The bond amount’s minimum is $50,000
  • The bond amount’s maximum is $150,000

Loan Originators:

  • The bond amount is 0.50% of the aggregate loan amount of residential mortgage loans from the previous calendar year.
  • The bond amount’s minimum is $50,000
  • The bond amount’s maximum is $100,000

Those who have excellent credit scores may qualify for a very low bond premium or just 1% of the bond amount!

 

Find out what you need to pay by getting your FREE quote here!


What are the bond conditions?

  • The bond should be issued by a surety bond company that is authorized to do business in the State of Ohio such as Surety Bond Authority
  • The bond should be made payable to the Superintendent of Financial Institutions
  • The bond should run concurrently with the term of the Mortgage Broker’s registration
  • The Mortgage Broker is obligated to comply with the provisions of Chapter 1322 of the Ohio Revised Code or the Mortgage Broker Act, the rules and regulations of the Ohio Department of Commerce’s Division of Financial Institutions, and all the other applicable rules that govern mortgage brokers in Ohio
  • If the mortgage broker, employee of the registrant, loan originator employed by or associated with the registrant commits a valid violation, the aggrieved party will be eligible to file a claim on the bond.


How can I obtain this bond?

You can get this bond by following these simple steps:

 

STEP 1: Apply for the bond

You need to submit a bond application to us. If you’re ready to apply now, you may do so here!

 

STEP 2: Underwriting

We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score.  An underwriter will carefully evaluate all those.

 

STEP 3: Bond execution

Once the underwriter is done with the prequalification process, we will immediately issue the bond and send it to you!

 

If you are ready to start on this bond today, you may easily contact us here!