Texas Escrow Officers Schedule Bond

Title insurance agencies in Texas have to post an escrow officers schedule bond for each escrow officer they employ. The Texas Department of Insurance requires the bonding. The bond is a part of the licensing criteria for escrow officers. It ensures escrow officers’ compliance with relevant sections in the Texas Insurance Code. Applicants must use the official bond form for their licensing application.

Title insurance agencies have to post a $5,000 bond for each escrow officer who is a resident of Texas. For each escrow officer who is a resident of an adjacent state, the bond amount is $10,000. The total amount for all escrow officers should not exceed $50,000.

The bond amount is different from the price you have to pay, which is your bond premium. Your actual cost is only a few percents of the required amount: typically between 1% and 3%. If you have to obtain the maximum amount of $50,000, your bond premium could be as low as $500-$1,500.

How is your bond cost set? When you apply with a surety, it has to take a close look at your personal and business finances. The most important factors considered are your personal credit score, business finances, and assets and liquidity. This is how the surety can assess whether you are a risky bond applicant. If your overall finances are in good shape, you can expect a lower bond premium.

For more information about bonding costs, you can consult our surety bond cost page.

If your insurance agency is struggling with problematic finances, you can still get the Texas escrow officers schedule bonds you need with us. Lance Surety Bonds runs its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.

The bond premiums for bad credit applicants are typically in the range of 5% and 10%. The bond price is higher, so that it can compensate for the increased risk in the bonding. We work with a number of A-rated, T-listed surety companies, which allows us to offer you top bonding rates matching your particular case.

Unlike insurance, surety bonds protect the state and its citizens from any unlawful actions committed by the escrow officers employed in your insurance agency. Affected parties can file a claim against your bond. If the claim is proven, you need to compensate the claimants up to the penal sum of the bond. The surety covers the costs initially, but you need to repay it soon afterwards, as set in the bond language.

The wisest course of action is to avoid bond claims as much as possible. They can harm your company’s finances and reputation. They may also prevent you from qualifying for future bonds.