Iowa Mortgage Broker Bonds

The Iowa Division of Banking requires broker applicants to post a $100,000 surety bond. It is one of the indispensable criteria for obtaining the Iowa mortgage broker license. It ensures you will follow applicable state laws, such as the state Consumer Credit Code, as well as Iowa Statutes, Chapter 535B. The licensing and bonding are submitted via the Nationwide Multistate Licensing System & Registry (NMLS).

Obtaining an Iowa mortgage broker license entails that you provide a $100,000 surety bond. This is the bond amount, but you only have to pay a fraction of it, called the bond premium.

Your surety bond cost is based on the strength of your finances. When you apply with a surety, it examines your personal credit score, company paperwork, and any fixed and liquid assets. This is how it evaluates the risk involved in the bonding. If your finances are in good shape, the rates you can expect are between 0.5% and 5%.

Lance Surety Bonds has created its Bad Credit Surety Bonds program to provide a bonding option for applicants with low credit scores, tax liens, bankruptcies, and civil judgments. If you are facing such issues, you can benefit from this program.

The rates are in the range of 5% to 10%, as the bonding risk is higher in the case of bad credit applicants. Since we work with a number of A-rated, T-listed surety companies, you can still get a top bonding price with us.

In order to launch your bonding process, you can fill out our online application form (it takes 5min). You also have to attach your full set of documents. When we receive your complete information, we can issue your exact quote. You can purchase the bond online afterwards.

Would you like to expand your knowledge about the bonding process? You can refer to our in-depth How to Get Bonded page.

For further questions, don't hesitate to call us at (877) 514-5146.

The surety bond that you post as a part of your licensing as an Iowa mortgage broker serves as a security mechanism. It protects your customers in case you transgress from your legal obligations. If a party suffers damages, they can bring a claim against your bond to seek fair reimbursement.

Initially, your surety may pay the costs on proven claims. However, you are liable to repay it fully, since this is set in the bond indemnity language. This means that avoiding claims is the best course of action, as they can harm your business' finances as well as reputation.