Montana Mortgage Servicer Bonds

Obtaining a Montana mortgage servicer license entails posting a $100,000 surety bond. The licensing body is the Division of Banking and Financial Institutions, but the process is handled via the website of the Nationwide Multistate Licensing System & Registry (NMLS). The bond you provide guarantees your compliance with the Montana Mortgage Act.

The required bond amount is $100,000. You have to pay only a fraction of it, which is called the bond premium.

What factors affect your surety bond cost? The surety you apply with needs to examine your personal credit score, company financials, and assets and liquidity. These indicators are used to assess the level of bonding risk. The stronger they are, the smaller your bond premium is likely to be. The typical rates for applicants with stable finances are between 0.5% and 5%.

Getting bonded with problematic finances can be difficult. That’s why Lance Surety Bond runs its Bad Credit Surety Bonds program to provide a bonding option for applicants with a low credit score, tax liens, bankruptcies, and civil judgments.

The rates are between 5% and 10% since the bonding risk is higher for bad credit applicants. Still, we are able to offer you a top option due to our partnerships with a number of A-rated, T-listed surety companies.

Have further questions? Our How to Get Bonded page is a detailed resource about the bonding process.

Our bonding experts are here to assist you. To speak to one of them, call us at (877) 514-5146.

Mortgage servicer bonds don’t work like insurance for your company. Instead, they are a safety net for the state and your customers. Your bond guarantees you will follow the law in your operations as a loan servicer. If you fail to do so, you can receive a claim.

Harmed parties can demand a reimbursement of up to $100,000, which is the bond amount you have posted. If the claim is proven, you have to cover the damages. Your surety may at first jump in to repay the claimant, but soon after you have to compensate it. It’s best to avoid such problematic situations, as they can harm your business and reputation.