Lance Surety Bond Associates, Inc.

Arkansas Mortgage Brokers and Mortgage Lenders have a minimum surety bond requirement of $100,000. The specific bond amount for each company/individual will be set by the state’s regulations.

Mortgage Lenders and servicers in the state of California have a minimum surety bond amount of $50,000, while a minimum bond amount of $25,000 is in place for finance lenders and brokers. Also, based on the amount of loans originated, the state may increase the bond amount accordingly.

Mortgage broker bonds, mortgage banker bonds and mortgage lender bonds are all obviously closely related to one another in that they all provide some sort of guarantee for the performance on a person or entity involved in a mortgage loan. Often times the same (or very similar) bond form may be used for each of these types. However, they differ in who and what exactly they guarantee. These commercial surety bonds are actually named after the principal of each bond. For example, the principal for a mortgage broker bond is the mortgage broker required to obtain the surety bond.

Mortgage brokers submit mortgage loan applications on behalf of their customers to individual banks and lenders, and then assemble loan costs and escrow funds to submit to banks and lenders they

Enacted on July 10, 2009, Arizona HB 2486 mandates that the state

Effective on October 2, 2009, Arizona House Bill (HB) 2143 mandates that all mortgage loan originators operating in the state must be officially employed by either a consumer lender, mortgage banker or a mortgage broker. These mortgage loan originators must also be covered by their employer

Effective on November 21, 2009, Alabama SB 232 created a new surety bond requirement for the state

2008 saw a large increase in the amount of legislation pertaining to mortgage broker bonds and mortgage lender bonds (types of commercial bonds). Most of the legislation focused on tightening regulation on mortgage brokers and lenders, and also on increasing the specific license bond amounts. While a good amount of legislation has been passing, many states are willing to wait and see what the US Congress

All states are under a time crunch to rapidly implement Title V of 2008

At first glance, some people may assume that mortgage bonds (mortgage banker bonds, and mortgage broker bonds) are all the same. While there are some similarities between the two types of commercial bonds mentioned above, there are also some clear differences which this article will outline.

Mortgage Banker vs. Mortgage Broker: Most surety bond companies classify mortgage banker and mortgage broker bonds in a similar fashion, but there are some operational elements to each that differentiate the two. Mortgage brokers serve as a

Over the past decade, the surety bond industry has seen some significant changes that have changed the industry landscape, particularly when it comes to high risk bond programs. Companies that were dropped by their bond companies as a result of bad credit, etc, have been forced to find new bond agents in order to help them attain new surety bonds. This created a slew of challenges for agents, as they now have to find markets for these customers with credit problems, and will typically require significant collateral in order to write a bond for someone with bad credit. To serve these types of principals, Bad Credit Surety Bond Programs came into play.

High Risk = Higher Premium: Before there were high risk bond programs, underwriters of surety bonds would only write bonds for customers (or principals) that presented little to no risk of having a claim arise against them. In other words, they went after a