Georgia Mortgage Lender Bond

In case you want to start a mortgage lending company in Georgia, you need to get a state mortgage lender license from the Department of Banking and Finances. As a part of this process, you need to present a $250,000 bond.

The licensing applications are submitted via the Nationwide Multistate Licensing System & Registry (NMLS). You also have to file your bond via its electronic surety bonds (ESB) option. The license and bond have to be renewed on an annual basis.

Your mortgage lender bond ensures that you will follow all applicable Georgia laws. Most notably, it guarantees you will comply with Title 7, Chapter 1, Article 13 of the Official Code of Georgia Annotated (O.C.G.A.).

Georgia House Bill 143 increased the bond amount for mortgage lenders from $150,000 to $250,000 in the middle of 2017.

Your bond price is based on the bond amount that you have to obtain. This is referred the bond premium. It is only a fraction of the bond amount, often between 1% and 3% for applicants with solid finances.

How is your surety bond cost determined exactly? Your surety needs to take a close look at your personal and business finances. It considers factors such as your credit score, any assets and liquidity you can show, as well as your business finances and management. The stronger your profile is, the lower your bond premium can get.

Even if your finances are problematic, you can still get the bond you need with us. At Lance Surety Bonds, we run our Bad Credit Surety Bonds program for applicants with credit score, tax liens, bankruptcies, and civil judgements.

The bonding rates that you can expect are in the range of 5%-10%. They are higher because they compensate for the increased risk. As we work with a number of A-rated, T-listed surety companies, you can still get an outstanding bond price with us.

Do you want to learn the intricacies of the bonding process? You can consult our detailed How to Get Bonded page for a full overview.

Have questions or need assistance with your bond application? Don’t hesitate to call us at (877) 514-5146, and our bonding experts will help you out.

Bond claims are a serious financial threat to your business. As bonds protect your customers and the state, a harmed party can file a claim against you. They can seek a reimbursement up to the penal sum of your bond, which is $250,000.

At first, your surety may step in to cover the compensation. However, you are fully liable for all incurred costs. That’s why it is a wise idea to avoid situations that can lead to claims, such as non-compliance with state laws and engaging in fraudulent activities as a lender.