Alaska Mortgage Broker Bonds Overview
As in other states across the U.S., mortgage brokers in Alaska have to undergo a licensing procedure in order to operate in the state. Providing a mortgage broker bond is among the main criteria you have to satisfy to be deemed a solid applicant.
The goal of the bonding requirement is to protect the state of Alaska and its citizens against potential legal breaches on the side of mortgage brokers. If you don't follow your obligations under the law, harmed parties can demand compensation through a bond claim.
The surety bond that you obtain functions as a contract between your business as principal and two more entities. The Alaska Department of Commerce, Community and Economic Development is the obligee that requires you to get bonded, while the surety is the party providing you with a bond.
Questions about Mortgage Broker Bonds in Alaska
Who has to obtain this surety bond?
Any entity that wants to get an Alaska residential mortgage broker license has to obtain a $75,000 bond. The Nationwide Multistate Licensing System & Registry (NMLS) deals with the practical aspects of the licensing process, while the Alaska Department of Commerce, Community and Economic Development is the licensing body on the state level. The bond needed for the licensing serves as a guarantee that applicants will abide by the Alaska Uniform Money Services Act and other applicable laws.
What is the Alaska mortgage broker bond cost?
In order to obtain your mortgage broker license, you have to obtain a $75,000 bond. This is the required bond amount of $75,000, while you only have to provide a percentage of it called the bond premium. You can expect it to be around 1% to 5% if your finances are stable.
A number of indicators are considered when formulating your surety bond cost. The most important ones include your personal credit score, company finances, and assets and liquidity that you may have. Your surety assesses how risky it is to get you bonded on the basis of these factors. The more solid they are, the smaller your bond cost should be.
|Alaska Mortgage Broker Bond Cost Based on Credit Score|
|Bond Name||Bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Alaska mortgage broker bond||$75,000||$375-$937.5||$562.5-$1,125||$1,500-$3,750||$3,750-$7,500|
Can I obtain this bond with bad credit?
Lance Surety Bond operates its Bad Credit Surety Bonds program to offer a bonding option for applicants with financial issues. If you have a low credit score, tax liens, bankruptcies, and civil judgements, you can benefit from it.
The rates for this program are between 5%-10% due to the higher bonding risk. Nonetheless, as we foster close partnerships with a number of A-rated, T-listed surety companies, we can provide you with top bonding options.
How do I apply for bonding?
Would you like to learn more about the bonding process and its intricacies? You can consult our in-depth How to Get Bonded page.
For further questions or if you need help with your bond application, our bonding experts can assist you. Just call us at (877) 514-5146.
The surety bond that you obtain as a mortgage broker in Alaska does not protect your business. It safeguards the interests of your customers. If you transgress from your legal obligations and a party suffers damages, they can file a bond claim against you.
In this way, the harmed party can seek a reimbursement of up to $75,000, which is the bond amount that you provided. If the case is proven, you need to cover all incurred costs. While your surety may pay at first, you have to reimburse it fully, as per the bond indemnity agreement. Thus, claims can end up to be quite costly for your business, and it's best to avoid them.