A Mortgage Broker Surety Bond ensures that licensed mortgage brokers abide by the respective state laws which regulate the mortgage broker industry. These laws vary by state but ultimately look to protect the consumer from predatory lending practices among other substandard practices.
What is the current market for a Mortgage Broker Surety Bond?
Mortgage Broker Surety Bonds are widely written by multiple surety bond markets. However, the market has tightened compared to years past due to the economic downturn which stemmed from the housing industry crisis. Regardless, those applicants with experience and a fair credit score can still easily obtain these bonds at a very low rate. Applicants with below average credit can also obtain a Mortgage Broker Surety Bond but should expect to pay a slightly higher rate. The bond amount for the Mortgage Broker Surety Bond varies dependent on the state requesting the bond. Terms of approval and premium are largely determined by the financial condition of the Mortgage Broker's corporate and/or personal net worth and experience along with the terms of the state specific bond form.