Connecticut Mortgage Servicer Bonds

You have to provide a $100,000 bond in order to obtain a Connecticut mortgage servicer license for a single location. The licensing authority that sets the requirements is the Department of Banking. However, the actual procedure occurs via the Nationwide Multistate Licensing System & Registry (NMLS). The goal of your bond is to ensure that you will follow the Banking Law of Connecticut and any other applicable laws.

The required bond amount for getting licensed is $100,000 for one location. If you want to operate more locations, you have to obtain an additional $100,000 bond coverage for each. To get bonded, however, you have to pay only a fraction of the total bond amount, which is called the bond premium.

When you apply with a surety, it examines your personal and business finances to determine your surety bond cost. The main factors that influence it include your personal credit score, company documents, and fixed and liquid assets that you showcase. By assessing them, the surety measures the level of bonding risk involved. For applicants with solid finances, the rates are often between 0.5% and 5%.

Obtaining the surety bond that you need if you struggle with financial issues can be tough. Lance Surety Bonds has designed its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgments.

Since the bonding risk is higher, the rates you can expect are around 5% to 10%. Nevertheless, due to our excellent partnerships with a number of A-rated, T-listed surety companies, you can still obtain a top bonding option with us.

Interested in learning more about how bonding works? You can refer to the in-depth guide on our How to Get Bonded page.

If you have further queries or need help with your application, you can call us at (877) 514-5146 to speak with our bonding specialists.

The goal of the surety bond requirement is to ensure that you will abide by the law in your operations as a Connecticut mortgage servicer. Thus, if you fail to do so, you can receive a claim against your bond. This is how a party who has suffered damages due to your actions can demand fair reimbursement.

The maximum compensation they can seek is up to your full bond amount. If the case is proven, you are liable to cover the costs. At first, your surety may step in to pay the claimant, but you will need to repay it soon after. Bond claims can seriously harm your business, so it is best to avoid them as much as possible.