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How much does a mortgage broker bond cost in Alabama?
The Alabama Mortgage Brokers Licensing Act, Consumer Credit Act, and Safe Mortgage Licensing Act requires licensed mortgage brokers to post surety bonds. The required bond amount is $25,000, $50,000, or $75,000, and the bond amount is based on the volume of residential loans closed during the previous calendar year.
The cost of an Alabama mortgage broker bond is subject to review by an underwriter, and highly qualified applicants are typically approved for just 1% to 3% of the total bond amount.
We can provide your free, no-obligation bond quote within one business day. Call 1 (800) 308-4358 or submit a bond request to get started!
Why do I need this bond?
By posting an Alabama mortgage broker bond, principals (mortgage brokers) pledge to operate ethical business and adhere to all provisions stated in the Alabama Consumer Credit Act, Alabama Mortgage Broker Licensing Act, and Alabama Secure and Fair Enforcement for Mortgage Licensing Act. These bonds protect consumers against fraud and other unethical practices committed by mortgage professionals.
Prohibited acts under this bond include:
- obtaining property by intentional fraud
- failing to make disclosures
- collecting or charging any prohibited fee
- failing to account for mortgage loan transaction monies
- failing to comply with state laws
What’s the fine print?
Alabama mortgage broker bonds expire annually on December 31. This bond may be continued for a subsequent year if the surety and principal sign a continuation certificate. These bonds remain in full force during their term unless canceled by the surety or principal. For cancellation, the surety must send a written cancellation notice to State of Alabama 60 days before the cancellation date.
How to become a mortgage broker in Alabama
Before applicants can start doing business as a mortgage broker in Alabama, they must be licensed. Applicants must submit completed license applications to the Supervisor of the Bureau of Loans. Completed applications must include the following materials:
- $75 license fee
- personal history and experience
- independent credit report
- surety bond
The Supervisor may require applicants to submit additional information for license issuance.
Mortgage Industry Surety Bonds Available Nationwide
Many states have their own surety bond requirements for mortgage professionals. This means mortgage professionals who work in several states often have multiple surety bonds. Use the map below to learn more about mortgage bonds in other states.