Utah Mortgage Broker Bond

Obtaining a Utah mortgage broker license entails that you post a surety bond. Its amount is set on the basis of your origination volume. The bond guarantees your compliance as a mortgage loan originator with Utah Code, Title 70D, and any other applicable rules.

The Nationwide Multistate Licensing System & Registry (NMLS) executes the licensing procedure for all applicants. The licensing authority that sets the requirements, however, is the Utah Department of Financial Institutions.

Utah mortgage brokers have to post a surety bond in an amount between $12,500 and $50,000, which is set in relation with your loan origination volume. To get bonded, however, you have to cover a small fraction of the required amount. It is called the bond premium and depends on the strength of your personal and business finances.

How is your surety bond cost determined? The main factors that shape it include your personal credit score, company finances, and fixed and liquid assets you may have. Your surety analyzes these indicators to assess the level of bonding risk. The stronger your overall profile is, the lower your bond price would get.

Getting bonded with bad credit can be tough. That’s why Lance Surety Bonds has designed its Bad Credit Surety Bonds program. It presents a bonding option for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.

Since it is riskier to provide bad credit bonds, the usual rates are higher - between 5% to 10%. Nevertheless, we can still offer you a top rate due to our close partnerships with numerous A-rated, T-listed surety companies.

To launch your bonding process, you just need to complete our online application form (it takes 5min). You have to attach your full paperwork, so we can issue your quote. Then you can purchase the bond online, and we’ll send you both a digital and a paper version.  

Would you like to learn more about the way bonding works? Don’t miss our in-depth How to Get Bonded guide.

If you have more questions, you can also speak with our bonding experts by calling us at (877) 514-5146.

The purpose of your mortgage broker bond is to protect your customers and the state against potential unlawful activities on your side. If you transgress from the law, a harmed party can file a claim against you. The maximum compensation they can seek is between $12,500 and $50,000, depending on the bond amount you’ve posted.

If the claim is proven, you are liable to pay the damages. The surety that bonded you may do so at first, but then you need to fully reimburse it. This is set in the bond indemnity agreement. Thus, it is best to avoid problematic situations that can give rise to costly and harmful claims.