Effective June 1, 2017, every Georgia mortgage broker and lender issued a license by the Department of Banking and Finance must increase the amount of their surety bond to be in compliance with new requirements mandated by Georgia House Bill 143. The new legislation also allows for bonds required under the previous legislation to be cancelled online through NMLS—the Nationwide Multistage Licensing System and Registry.
How much is the bond amount increasing?
The bond amount requirement for Georgia mortgage brokers has increased from a minimum of $50,000 to a minimum requirement of $150,000. Mortgage lenders must now post a bond of at least $250,000, which is an increase from the previous requirement of $150,000. In the event the department feels it is necessary, both lenders and brokers may be subject to a higher bond amount.
How do I cancel a preexisting mortgage broker or lender bond?
Those who have a mortgage broker bond or mortgage lender bond in Georgia are able to cancel the bonds that they have from the now-outdated legislation electronically through NMLS. The Nationwide Multistate Licensing System is a safe, secure tool for people seeking licensure across various industries to complete licensing applications and bond forms online. This new cancellation policy makes it so that obligees who need to cancel a preexisting mortgage broker or lender bond will not have to go through the entity from which they purchased the bond to submit a cancellation request.
How much will it cost to get a Georgia mortgage broker or lender bond?
Due to the large bond amounts and inherent risk associated with mortgage professions, the premium to be paid by applicants must be determined by an underwriter. Upon receiving the application for a bond, the underwriter will check the applicant’s various credentials to determine their level of qualification, which will affect the premium the applicant pays. Highly qualified applicants are often approved for just 1% of the total bond amount—meaning a $50,000 bond may be obtained for as little as $500. However, premiums may rise to as high as 7-10% of the bond amount for applicants with poor credit or few qualifications.
Where do I get a Georgia mortgage broker or lender bond?
Our surety experts are ready to help you get your Georgia mortgage broker or mortgage lender bond. Simply click the button below or give us a call at 1 (800) 308-4358 to get your free, no obligation quote today!