Arizona Mortgage Broker Bond

A mortgage broker bond in Arizona costs between $100 and $1,500. The surety bond is a mortgage broker licensing requirement. 

A surety bond of $10,000 is required for mortgage brokers who work only with institutional investors. Mortgage brokers who work with non-institutional investors must have a $15,000 bond. 

Rather than pay the full bond amount, you can purchase your bond through a surety bond company. Bond premiums range from 1% to 10% of the loan amount. Credit scores, professional experience and financial strength affect the premium rate. 

Applicants with credit scores above 700 qualify for premiums from 1% to 3%. Applicants with credit scores between 600 and 699 qualify for premiums from 3% to 5%. Premiums of 5% to 10% are available for applicants with a 599 credit score or below. 

According to Title 6, Chapter 9, Article 1, Arizona Revised Statutes, a bond is a requirement for a residential mortgage broker license. A $10,000 bond is required for brokers working with institutional investors. A $15,000 bond is required for brokers working with non-institutional investors.

Arizona Department of Financial Institutions establishes and enforces licensing criteria. The NMLS conducts mortgage broker licensing. The Arizona surety bond form is a mortgage broker license application requirement. The bond form must list the State of Arizona as the obligee.

The surety bond is continuous, meaning that there is not an expiration date. However, the surety bond company may require regular premium payments. The company must also notify the Department of Financial Institutions at least 30 days before canceling the bond.

If the bond is canceled, the mortgage broker’s license is subject to suspension. The mortgage broker must provide a new surety bond form to the Department of Financial Institutions prior to the cancellation date to remain properly licensed.