New Hampshire Mortgage Servicer Bonds Explained
New Hampshire mortgage servicers need to get a license in the state before launching their operations. Among the obligatory requirements that you have to fulfill as a part of this process is to provide a mortgage servicer bond.
The bonding serves as a protection instrument that maintains the interests of the state and your customers. It is a guarantee for your legal compliance in your capacity as a mortgage servicer.
Your surety bond is a contract between your business as the principal, and two more parties. The obligee that sets the licensing requirements is the New Hampshire Banking Department. The third entity provides the bond, and this is the surety.
Questions about Mortgage Servicer Bonds in New Hampshire
When do I have to post this bond?
If you wish to get a New Hampshire mortgage servicer license to work in the state, you have to post a $100,000 surety bond. The Banking Department is the licensing authority, but the process is conducted via the Nationwide Multistate Licensing System & Registry (NMLS). The goal of your bonding is to ensure that you will adhere to all applicable New Hampshire laws.
What are the bonding costs?
In order to obtain your state license, you have to provide a $100,000 surety bond. This is the bond amount, but you have to pay only a part of it, called the bond premium.
The actual surety bond cost that you have to cover is based on the strength of your personal and business finances. Your surety takes into consideration your personal credit score, company financials, and fixed and liquid assets. The stronger these factors are, the lower your bond premium would be. The typical rates for applicants with stable finances are between 0.5% and 5%.
|New Hampshire Mortgage Servicer Surety Bond Cost Based on Credit Score|
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|New Hampshire mortgage servicer bond||$100,000||$500-$1,250||$750-$1,500||$2,000-$5,000||$5,000-$10,000|
Is bad credit bonding plausible?
If your finances are not in good shape, obtaining a mortgage servicer bond can be difficult. For applicants with low credit scores, tax liens, bankruptcies, and civil judgments, we run our Bad Credit Surety Bonds program.
Due to the increased risk in the bonding, the rates are in the range of 5% and 10%. However, you can still get a top bonding rate with us. This is due to our exclusive partnerships with numerous A-rated, T-listed surety companies.
What is the bonding process like?
You can launch your bonding process today by completing our online application form (it takes 5min). After we have all your documents, we will send you a bond quote. If it is satisfactory for you, you can purchase the bond online. We will then send you a digital and a paper version.
Want to know more about the bonding process? You can refer to our detailed resource on the How to Get Bonded page.
Our bonding experts are here to assist you. To speak to one of them, call us at (877) 514-5146.
What if a claim is made against my bond?
If you fail to follow the laws that govern mortgage servicing in New Hampshire, you can end up with a claim against your surety bond. This is how harmed parties can demand fair compensation for any damages caused by your unlawful actions. The sum that they can seek is up to the bond amount of $100,000.
In case the claim is proven, you are liable to cover all costs. While your surety may pay them at first, you still need to reimburse it afterwards. This means that bond claims can be costly and harmful, so the wisest course of action is to avoid them.