Wyoming Mortgage Lender and Broker Bonds Explained
Want to launch a mortgage lender or broker business in Wyoming? You have to undergo a licensing process with state authorities, which entails providing a mortgage broker bond.
The surety bond protects the state and your customers. It ensures you will adhere to all applicable laws in your activities as a licensed mortgage lender or broker.
In the three-party contract that the bond constitutes, your business is the principal who needs the bonding. The obligee is the Wyoming Division of Banking, which oversees the industry. The surety is the bond provider.
Questions about Mortgage Broker Bonds in Wyoming
Who needs to get bonded?
All applicants for a Wyoming mortgage lender and broker license need to post a $25,000 surety bond. Supervised lenders under the Wyoming Uniform Consumer Credit Code also need the license and bonding if they want to work with first-lien mortgages.
The licensing authority is the state Division of Banking. However, the Nationwide Multistate Licensing System & Registry (NMLS) handles the documentation, so you have to apply with it.
The surety bond guarantees you will abide by Title 40, Chapter 23 of the Wyoming Statutes (The Wyoming Residential Mortgage Practices Act), and any other relevant laws.
How much does it cost to get this bond?
The bond requirement for Wyoming mortgage lenders and brokers is $25,000. This is the legally required bond amount. On its basis, your bond premium represents a small percentage, calculated in consideration of your financial strength.
The exact surety bond cost that you have to pay depends on your personal credit score, business finances, and any fixed and liquid assets you may have. The surety has to examine these factors, so that it gets a clear view of the bonding risk that you pose. The price you will end up paying will be lower if your finances are in good shape.
|Wyoming Mortgage Broker Bond Cost Based on Credit Score|
|Surety Bond Name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Mortgage lender and broker bond||$25,000||$125-$312.5||$187.5-$375||$500-$1,250||$1,250-$2,500|
What if my finances are not in good shape?
Lance Surety Bonds has created its Bad Credit Surety Bonds program for applicants who have financial issues. If you're struggling with low credit scores, tax liens, bankruptcies, and civil judgments, you can make use of this bonding option.
The rates are higher due to the increased bonding risk, so they are in the range of 5% to 10%. As we work with a number of A-rated, T-listed surety companies, we can shop around for you and offer you the best match for your particular case.
How to apply for my bond?
You can launch your bonding process online with ease. Just complete our online application form (it takes 5min) and provide the necessary paperwork. We'll get in touch with an exact quote. If you're happy with it, you can buy your bond online straight away. You will then receive a digital and paper copy of it.
Want to know more about the intricacies of bonding? Find out more details in our How to Get Bonded guide.
For any questions or if you need assistance, you can call us at (877) 514-5146.
What happens if I get a bond claim?
As the goal of your surety bond is to safeguard the interests of your customers, you can receive a claim against it if you fail to follow the law. A party who has suffered damages as a result of your actions can demand compensation of up to $25,000, which is the bond amount posted.
As set in the bond indemnity, you're fully liable to pay the costs on proven claims. The surety may cover them at first, but you need to reimburse it. Thus, claims can cause serious financial damage to your business. They can also be an obstacle to any future bonding and licensing needs.