Tennessee Mortgage Broker Bonds

In case you want to obtain a Tennessee mortgage license as a loan broker, you have to get a $90,000 surety bond. Its purpose is to guarantee you will follow all applicable laws, including Title 45, Chapter 13 of the Tennessee Code.

As for other types of financial services professionals, the Nationwide Multistate Licensing System & Registry (NMLS) handles the licensing and bonding documents. The licensing requirements, however, are set by the Tennessee Department of Financial Institutions.

In order to get licensed as a Tennessee mortgage broker, the bond amount that you have to post is $90,000. Your bond premium is a fraction of this amount, which is set on the basis of your financial profile.

The surety provider has to examine your personal and business finances to determine how risky the bonding is. The exact surety bond cost depends on factors like your personal credit score, company paperwork, and any fixed and liquid assets. If the risk is perceived as low, your premium will also be smaller.

Lance Surety Bonds has designed its Bad Credit Surety Bonds program to serve applicants with financial problems such as low credit scores, tax liens, bankruptcies, and civil judgments.

As the bonding risk is higher, the rates are in the range of 5% to 10%. Our excellent partnerships with a number of A-rated, T-listed surety companies, nevertheless, allow us to offer you a top bonding option.

The first step to getting your mortgage broker bond is to complete our online application form (it takes 5min). Then you have to provide your full paperwork, so that we can assess your exact quote. If you're satisfied with it, you can buy your bond online straight away.

You can find extensive details about the bonding process on our How to Get Bonded page.

Have further questions? You can consult our bonding experts by calling us at (877) 514-5146.

The purpose of your broker bond is to safeguard the interests of your customers and the state in which you operate. Thus, if you transgress from your legal obligations, you can end up with a claim against the bond.

Harmed parties can demand reimbursement of up to $90,000, which is the penal sum of the bond. If the claim is proven, you have to pay the due compensation. The surety that backed you may at first cover these costs, but you have to fully repay it afterwards. This is set in the bond indemnity agreement. As a result, bond claims can bring serious problems for your business, so it is best to avoid them as much as possible.