Delaware Mortgage Broker Bonds Explained
Mortgage brokers in Delaware have to undergo a rigorous licensing procedure that ensures their suitability for the profession. It entails providing a mortgage broker bond.
As other surety bonds, this bond ensures that you will comply with all applicable rules and regulations in your operations as a mortgage broker. It acts as a safety net for the state and your customers.
When you get bonded, your mortgage brokering business enters a three-party contract as the principal. The Delaware Office of the State Bank Commissioner is the obligee that requires the bond from you, while the surety is the entity that provides you with the bond funding.
Questions about Mortgage Broker Bonds in Delaware
In which cases is this bond required?
The Delaware Office of the State Bank Commissioner requires all mortgage brokers to post a $25,000 surety bond. As for other mortgage professionals, the licensing is conducted via the Nationwide Multistate Licensing System & Registry (NMLS). The bond serves as a guarantee for your compliance with the Delaware S.A.F.E. Mortgage Licensing Act of 2009, and any other applicable laws.
How much would I pay to get bonded?
In order to obtain a Delaware mortgage broker license, you have to post a bond amount of $25,000. However, you will only have to pay a small percentage of it, which is called the bond premium. The typical rates for applicants with stable finances are between 1% and 5%.
What indicators are considered when determining your surety bond cost? The most important ones include your credit score, business finances, and any assets and liquidity. On the basis of these factors, your surety assesses the bonding risk that you pose. The lower it is, the smaller your bond premium is likely to be.
|Delaware Mortgage Broker Bond Cost Based on Credit Score|
|Bond name||Bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Delaware mortgage broker bond||$25,000||$125-$312.5||$187.5-$375||$500-$1,250||$1,250-$2,500|
Can I obtain bonding with problematic finances?
It is possible to get bonded even if you are struggling with bad credit. Lance Surety Bond operates its Bad Credit Surety Bonds program for applicants with financial issues such as low credit scores, tax liens, bankruptcies, and civil judgements.
Since the bonding risk is higher, you can expect the rates to be in the 5%-10% range. However, due to our partnerships with a number of A-rated, T-listed surety companies, we can offer you a top bonding option regardless of your credit.
How do I apply for a bond?
In order to obtain your Delaware mortgage broker bond, you will need to follow the following steps:
We will contact you with a free, no-obligation quote
If you are satisfied with your quote, you can purchase your bond online
Afterwards, you will receive a digital, as well as a hard copy of your bond
Would you like to learn more about how bonding works? Make sure to consult our How to Get Bonded page for further information.
If you have any questions or need assistance with your bond application, you can contact us at (877) 514-5146 to speak to our bonding experts.
How are claims handled for mortgage brokers?
The goal of your mortgage broker bond is to protect the rights of your customers. If you don't follow your legal obligations under Delaware law, you can face a claim against your bond. This is how your clients can demand reimbursement for any damages.
Initially, your surety may pay the claim on proven cases. Afterwards, as per the bond indemnity agreement, you will be liable to reimburse all costs. Thus, it's best to stay away from situations that can give rise to claims, which can be costly and harmful to your business.