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Wisconsin Mortgage Broker Bonds Explained
Mortgage brokers who want to operate on the territory of Wisconsin have to undergo a licensing procedure that ensures they comply with state requirements. One of the criteria you have to meet is posting a mortgage broker bond.
The goal of the bonding is to provide an extra layer of security for your customers. It guarantees your legal compliance, thus protecting their interests against potential unlawful activities on your side.
In essence, the mortgage broker bond represents a contract between you as the principal, and two more parties. The obligee is the Wisconsin Department of Financial Institutions, while the third entity is the bond provider - the surety.
Questions about Mortgage Broker Bonds in Wisconsin
When do I need this bond?
Obtaining a Wisconsin mortgage broker license entails that you post a $120,000 surety bond. It functions as a security mechanism that ensures you will follow all applicable laws in the state.
The licensing authority is the Wisconsin Department of Financial Institutions. The licensing and bonding documents are handled via the Nationwide Multistate Licensing System & Registry (NMLS).
What is the bond cost?
Wisconsin mortgage brokers have to obtain a $120,000 bond, which is the required bond amount. In order to get bonded, though, you have to pay a fraction of it, called the bond premium.
What indicators are taken into account when determining your surety bond cost? The most important ones include your personal credit score, company finances, and fixed and liquid assets. By examining these factors, your surety assesses the level of bonding risk that you pose. Your premium will be lower if your overall profile is stable.
| Wisconsin Mortgage Broker Bond Cost Based on Credit Score | |||||
|---|---|---|---|---|---|
| Surety bond name | Surety bond amount | Above 700 | Between 650-699 | Between 600-649 | Below 599 |
| Mortgage broker bond | $120,000 | $600-$1,500 | $900-$1,800 | $2,400-$6,000 | $6,000-$12,000 |
What if I have financial problems?
You can still obtain the mortgage broker bond that you need, even if your finances are not perfect. Lance Surety Bonds runs its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.
Due to the higher bonding risk, the rates you can expect are between 5% to 10%. Nevertheless, you are guaranteed a top price with us. We work with a number of A-rated, T-listed surety companies. This allows us to shop around for the best bonding options that match your specific circumstances.
How Do I Get Bonded?
You can fill out our online application form (it takes 5min) to start your bonding. Whenever we have all the necessary documents from you, we will deliver an exact quote. You can then buy your bond online.
Would you like to delve into the details of the bonding process? Don't miss our in-depth How to Get Bonded page.
If you have further questions or need help with your application, you can reach us at (877) 514-5146.
What happens in case of a bond claim?
A harmed party can bring a claim against your Wisconsin mortgage broker bond if you fail to fulfill your obligations under the law. This is the mechanism through which fair compensation can be sought. The maximum penal sum is the bond you have posted, which is $120,000 in this case.
If the claim is proven, you are liable to pay the claimant. The surety that bonded you may do so at first, but you have to reimburse all costs afterwards. Thus, the bond indemnity agreement sets that you are solely responsible for settling proven claims.
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Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
