What is a Texas Mortgage Broker Bond?
Applying for or renewing your license as a Mortgage Broker in Texas? Get qualified for this bond today!
A Texas Mortgage Broker Bond is a License and Permit Bond requirement stated in the Texas Mortgage Broker License Act. The individual must conform to this requirement before he can legally perform his duties as a mortgage broker in the state of Texas.
A mortgage broker is an intermediary who helps home buyers get the best deal by scouring various lenders.
What is the Mortgage Broker Bond for?
The bond is interpreted in line with the Texas Mortgage Broker Act, federal statutes, state law, and all the other necessary regulations. Therefore, the bond’s purpose is to ensure that the mortgage broker will abide by all those to fulfill his obligations in the best way possible for the safety of the consumers.
The bond will also serve as a guarantee that if the mortgage broker violates any of the conditions outlined in the bond, the consumer will be eligible to file a claim on the bond.
How much is the bond amount and what are the bond conditions?
The license holder or license applicant should maintain a surety bond with a minimum bond amount of $50,000. With an excellent credit score, you may be qualified to pay the minimum surety bond cost of $500 or just 1% of the bond amount!
Regarding the bond’s validity period, it should coincide with the validity of the license. In the case of license renewals, the Savings and Loan Commissioner of the State of Texas requires proof of the bond’s renewal.
How can I obtain this type of bond?
By sending an application to a surety bond company that is authorized in Texas, such as Surety Bond Authority.
You will go through the pre-qualification process which involves a complete assessment of your financial history, job performance history, and credit score by an expert underwriter.
You will immediately receive your bond once qualified.
What are the requirements to become a Mortgage Broker in Texas aside from the surety bond?
- You must be at least 18 years old
- A United States Citizen or a lawfully admitted alien
- You must have an office in Texas
- You must be any of these three:
- Hold a bachelor’s degree in the area Business Administration, Banking, and Finance from an accredited university or college, and has more than 18 months of mortgage lending experience
- Is currently a licensed real estate broker, an attorney, or a legal reserve life insurance company local recording agent or insurance agent
- Has 3 or more years of mortgage lending experience
- Has not been convicted of any criminal offense
- Complete the required application form
- Pay the necessary application fee (not more than $375) determined by the Commissioner, and the Recovery Fund Fee of $20.
Apply to us today to get the bond that you need immediately!