New Jersey Mortgage Broker Bond

Getting a New Jersey residential mortgage broker license entails that you post a $150,000 bond. The licensing is conducted via the Nationwide Multistate Licensing System & Registry (NMLS). The New Jersey Department of Banking and Insurance is the state authority that imposes the licensing criteria.

The bond guarantees you will comply with all applicable state legislation, including the New Jersey Residential Mortgage Lending Act (RMLA).

In order to obtain a mortgage broker license in the state of New Jersey, you have to post a bond in the amount of $150,000. You are not required to pay the full amount to get bonded. Instead, you only have to pay a small percentage of the bond amount, referred to as the bond premium. If your finances are in good shape, you can expect rates between 0.5% and 5%.

What factors influence your surety bond cost? To obtain your bond, you have to apply with a surety. It needs to examine your personal credit score, business finances, and assets and liquidity you can showcase. This is how it can assess the level of bonding risk involved. The stronger your finances are, the cheaper the cost of your surety bond will be.

It may be difficult to obtain the bond you need with problematic finances. That’s why Lance Surety Bond runs its Bad Credit Surety Bonds program. It’s designed for applicants struggling with issues such as a low credit score, tax liens, bankruptcies, and civil judgements.

The rates that you can expect are in the range of 5%-10%. As the bonding risk is higher, the slightly increased price is there to compensate for it. Still, we are able to offer you a great bonding option. This is due to our close partnerships with a number of A-rated, T-listed surety companies.

Looking for more detailed information about the bonding process? Make sure to refer to our extended How to Get Bonded page.

In case you have more questions or need help with your bond application, we are here to help. Just contact us at (877) 514-5146 to speak to our bonding specialists.

Since your mortgage broker bond serves as protection for your customers, you can end up with a claim against it if you transgress from your legal obligations. It works as a safety net in cases when a party suffers damages due to your unlawful actions.

The surety bond claim first needs to be proven. If the claim is legitimate, you have to pay compensation to the claimants. The maximum penal sum is the bond amount that you have posted, which is $150,000 for New Jersey mortgage brokers. At first, your surety may step in to ensure a fast reimbursement. However, you are fully liable for all costs incurred. Thus, it’s best to avoid bond claims, which can hurt your business.