What Is an Oklahoma Mortgage Lender Bond?
Mortgage lenders typically have to get a state license to operate legally, and the same applies to Oklahoma lenders. You have to obtain a mortgage lender bond as a part of the licensing process.
The purpose of your Oklahoma surety bond is to protect the state and its citizens from potential unlawful activities you may engage in. A bond claim can be used to obtain a fair compensation for entities who have sustained damages as a result.
The bond you get functions as a three-party contract. Your lending company is the principal that needs to get bonded. The Oklahoma Department of Consumer Credit is the obligee that sets the bond requirement. The surety gets you bonded.
Questions about Mortgage Lender Bonds in Oklahoma
When do I have to obtain a mortgage lender bond?
The Oklahoma Department of Consumer Credit is the licensing authority for mortgage professionals in the state. If you’d like to start a lending company, you will need to obtain a license from it. You will need to post a $100,000 Oklahoma mortgage lender bond to satisfy its requirements. The licensing process is conducted via the Nationwide Multistate Licensing System & Registry (NMLS).
Your surety bond guarantees you will follow your obligations under the Oklahoma Secure and Fair Enforcement for Mortgage Licensing Act. It should be renewed together with your license before December 1st of every year.
How much will it cost to get bonded?
The bond amount that you have to post to get licensed as a Oklahoma mortgage lender is $100,000. The bond premium that you have to pay, however, is only a fraction of it.
There are a number of factors that affect your surety bond cost. Most important is your personal credit score, followed by your business finances, assets, liquidity, and even industry experience. The strength of your overall profile is a signal for your surety that you are a reliable candidate. You can expect to pay between 1% and 3% for your bond if your finances are stable.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Oklahoma mortgage lender bond||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
What if I have bad credit?
Lance Surety Bond operates its Bad Credit Surety Bonds program for applicants with problematic finances. If you have a low credit score, tax liens, bankruptcies, or civil judgements, this bonding option may be the right one for you.
As the bonding risk is higher, you can expect rates in the range of 5%-10%. We work with a number of A-rated, T-listed surety companies, which gives us access to diverse bonding programs. Thus, we can select the best fit for your particular case.
How do I apply for an Oklahoma mortgage lender bond?
Need more information about surety bonds? You can take a look at our How to Get Bonded page for further details.
You can reach us at (877) 514-5146 for any assistance you may need. Lance Surety Bonds’ specialists are happy to help you.
How are bond claims handled for mortgage lenders?
A surety bond claim can be brought against you if you do not follow your legal obligations. That’s because your Oklahoma mortgage lender bond does not protect your business, but rather your customers and the state. A harmed party can seek a reimbursement of up to $100,000, which is the penal sum of your bond.
On proven claims, your surety may first cover the costs, so that the claimants receive a timely compensation. According to the bond indemnity agreement, however, you are liable for all such payments. This makes bond claims problematic for your company, so it’s best to stay away from situations that may lead to them.