Mississippi Mortgage Broker Bond

In order to obtain a license as a mortgage broker in Mississippi you need to post an initial bond amount of $25,000. The licensing process is done via the Nationwide Multistate Licensing System & Registry (NMLS). The state authority in charge of overseeing mortgage brokers is the Mississippi Department of Banking and Consumer Finance.

The bond that you obtain is needed to guarantee your compliance with the Mississippi S.A.F.E. Mortgage Act, together with any other relevant laws. Every time you renew the bond, the amount may change depending on the volume of your operations.

In order to get a Mississippi mortgage broker license for the first time, you have to post a bond amount of $25,000. When you renew your license, the bond amount may vary depending on the volume of your work. If it is below $1 million, the bond amount is $15,000. For volume between $1 million and $5 million, you need a $20,000 bond. For volume above $5 million, you need a bond of $25,000.

The price you have to pay to get bonded is called the bond premium. It is usually between 1% and 5% if your finances are stable.

What are the criteria that your surety considers when formulating your surety bond cost? It examines the strength of your personal and business finances by looking at your personal credit score, business financials, and any assets and liquidity. On the basis of these factors, it assesses what the bonding risk is. If your overall application is solid, you can expect to pay less for your bond.

Problematic finances can be tough to overcome. Lance Surety Bond runs its Bad Credit Surety Bonds program for applicants with credit score, tax liens, bankruptcies, and civil judgements. This means you can get bonded whatever your credit score is.

The typical bad credit rates are in the range of 5%-10%. The higher price compensates for the increased bonding risk. Due to our close relations with a number of A-rated, T-listed surety companies, we can get you bonded at the best price, even if your finances are far from perfect.

In case you want to learn more about the way bonding works, you can consult our detailed How to Get Bonded page.

Have more questions? Just contact us at (877) 514-5146. Our surety bond experts will gladly assist you.

It’s important to grasp the difference between insurance and surety bonds. Your Mississippi mortgage broker bond does not protect your business like insurance. Instead, it safeguards the interests of the state and the general public. If you fail to abide by the law, you can end up with a bond claim. This is a mechanism through which harmed parties can seek a financial compensation for any damages they have suffered as a result of your illegal actions.

The maximum penal sum that claimants can seek is the bond amount you have posted. At first, your surety may step up to cover the costs. However, you need to repay the whole amount soon after. This means that bond claims are to be avoided, as they cause serious financial harm and can damage your reputation.