What Is an Alaska Foreclosure Consultant Bond?
If you’d like to conduct foreclosure consulting services in Alaska, you will need to get a mortgage broker/lender license. As a part of the process, you need to provide a foreclosure consultant bond.
The purpose of your Alaska surety bond is to guarantee that you will comply with all applicable state rules. It can provide a financial compensation to affected parties in case you fail to do so.
Your bond functions like a contract between three parties. Your foreclosure consulting business is the principal that has to post the bond. The Alaska Department of Commerce is the obligee that requires it. The bond provider is the surety.
Frequently Asked Questions
Who has to obtain this surety bond?
Any entity that wants to operate as a foreclosure consultant in Alaska has to get a mortgage broker/lender license with the state Department of Commerce. This is one of the activities allowed under this license.
You have to obtain a $75,000 surety bond as a part of this process. The licensing is conducted via the NMLS website. You can check all requirements here. The bond ensures your compliance with applicable points in the Alaska Statutes 2017.
How much does an Alaska foreclosure consultant bond cost?
You have to obtain a $750,000 bond. This is the required bond amount, which is different from your actual surety bond cost. In order to get bonded, you have to pay only a bond premium. It is a small percentage of the amount you have to post.
The exact sum that you have to cover to obtain your bond depends on a number of factors. Your surety needs to consider your personal and business finances. It has to examine your credit score, company financials, and any assets and liquidity. On the basis of these criteria, it can assess the bonding risk involved. If your overall finances are stable, you can expect a rate between 1% and 5%.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Alaska foreclosure consultant bond||$75,000||$562.5-$1,125||$750-$1,875||$1,875-$3,750||$3,750-$7,500|
What happens if I have bad credit?
You can still obtain the surety bond that you need - even if your finances are far from perfect. We run our Bad Credit Surety Bonds program for applicants with a low credit score, tax liens, bankruptcies, or civil judgements.
The bonding rates are slightly higher - in the range of 5%-10%. This is needed in order to compensate for the increased bonding risk. Due to our excellent relations with numerous A-rated, T-listed surety companies, we can still offer you a top price, whatever your credit score is.
How do I get my bond?
Our How to Get Bonded page is an in-depth resource on the bonding process. Make sure to consult it for further details.
If you have questions, don’t hesitate to reach out to us. Just call us at (877) 514-5146, and we will help you out.
How are bond claims handled for Alaska foreclosure consultants?
You can end up with a claim against your surety bond in case you fail to follow the law and your obligations as set in the bond language. The maximum penal sum that claimants can seek as a reimbursement is $75,000, the bond amount you have posted.
If the claim is proven, the compensation has to be provided. At first, your surety may cover the costs. However, you need to fully repay it, as you are liable for all payments. Thus, it’s best to stay away from situations that can give rise to claims.