New Hampshire Mortgage Broker Bonds Explained
As in other states across the U.S., New Hampshire mortgage brokers need to undergo a licensing process with state authorities in order to ensure their suitability for the job. As part of this procedure, they need to post a mortgage broker bond.
The surety bond that you provide serves as a protection mechanism for your customers. It also ensures your legal compliance with state regulations.
Your mortgage broker bond functions as a contract between three parties, including your business as the principal. The New Hampshire Banking Department is the obligee that requires you to get bonded, while the surety is the bond provider.
Questions about Mortgage Broker Bonds in New Hampshire
Who has to obtain this bond?
Any entity that wants to obtain a New Hampshire mortgage broker license must provide a surety bond in the amount of $50,000. The Nationwide Multistate Licensing System & Registry (NMLS) processes the licensing application, while the licensing authority is the New Hampshire Banking Department. The bond that you provide serves as a guarantee for your compliance with the New Hampshire S.A.F.E. Act and other applicable statutes.
What is the New Hampshire mortgage broker bond cost?
The bond amount for mortgage brokers in New Hampshire is set at $50,000. However, you have to cover a small fraction of it to get bonded. It is called the bond premium. If your finances are stable, the rates typically range between 1% and 5% of your bond amount.
What criteria are considered when formulating your surety bond cost? Your surety has to take a close look at your personal credit score, business finances, and any fixed or liquid assets. On the basis of these factors, it assesses the level of bonding risk involved. The more stable your overall profile is, the better your chances are to get a lower premium.
|New Hampshire Mortgage Broker Bond Cost Based on Credit Score|
|Surety bond name||Bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|New Hampshire mortgage broker bond||$50,000||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
Can I get bonded with bad credit?
It is possible to get your mortgage broker bond even if your finances are not perfect. Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.
The bonding rates are in the range of 5%-10% in order to compensate for the higher bonding risk. You can still get a great rate with us, as we collaborate with a number of A-rated, T-listed surety companies, which allows us to shop around for the best option.
How Do I Get Bonded?
The process for getting your New Hampshire mortgage broker bond is the following:
You will receive a free, no-obligation quote from us
If you are happy with your quote, you can buy your bond online
Then we will send you a digital and hard copy of the bond
Would you like to delve into the details of the bonding process? You can find out more information on our How to Get Bonded page.
Do you have further questions, or need assistance with your bond application? Just contact us at (877) 514-5146 to get help from one of our bonding experts.
What happens if I get a bond claim?
The purpose of your mortgage broker bond is to protect your customers against any illegal and unethical actions you may engage in while in your professional capacity as a broker. If a party suffers damages as a result, they can file a claim against your surety bond.
At first, your surety may step in to pay the costs on any proven claims, thus ensuring a fast compensation to the claimant. However, you are liable for all incurred costs, since this is set in your bond indemnity agreement. The maximum reimbursement is up to the bond amount you have posted, which is, in this case, $50,000. Thus, it's best to avoid claims, as they can harm your business financially, and severely damage your reputation.
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!