Mortgage Broker Bonds

What is a Mortgage Broker Bond?

Mortgage professionals in many states are required to purchase a mortgage broker bond before they can be legally licensed. Mortgage broker bonds protect consumers from fraud and other wrongful practices committed by mortgage professionals. Depending on a bond form’s specific contractual language, customers could receive financial reparation if a mortgage professional:

  • knowingly approves the borrower for a loan for more than he or she can afford to repay
  • encourages the buyer to use fraud during the application process
  • pressures buyers into certain loan products, including high-risk loans or loans with higher interest rates
  • establishes an interest rate based on anything other than the borrower’s credit history
  • charges unnecessary or additional fees
  • deliberately targets vulnerable or at-risk buyers and suggests cash-out refinances

Laws that regulate mortgage professionals vary by state. Some states have universal bonding requirements for all mortgage professionals while others have specific requirements that vary by profession. Depending on the state you work in, the following mortgage professionals might need to be bonded:

  • mortgage brokers
  • mortgage lenders
  • mortgage originators
  • mortgage servicers

To get started with the application process, download the Mortgage Broker bond form below, then email or fax it to our team once completed:

Mortgage Broker Application