How much does a mortgage licensee bond cost in Connecticut?
All companies offering mortgage services must post $50,000 or $100,000 surety bonds depending on the type of license. Surety bonds for mortgage brokers, mortgage lenders, and correspondents are subject to underwriting, meaning an application must be sent to an underwriter before the cost of the bond can be determined. Highly qualified applicants may be approved for as little as 1-3% of the total bond amount.
Why do I need this bond?
By posting a Connecticut mortgage licensee surety bond, principals (mortgage lenders, correspondent lenders, brokers and loan originators) pledge to conduct business in accordance with the provisions of Section 36a-485 to 36a-498f (inclusive), 36a-534a and 36a-534b of the Connecticut General Statutes. If the principal fails to comply with these terms, the bond protects any consumer harmed as a result of the principal’s unethical business practices up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
What’s the fine print?
Mortgage licensee bonds in Connecticut remain continuous until canceled. The surety can cancel the bond at any time by giving written notice to the Banking Commissioner stating the date cancellation will take effect. Notice must be sent by certified mail at least 30 days prior to the effective date.
The specific license type (mortgage lender, mortgage correspondent lender, mortgage broker or mortgage loan originator) must be indicated on the bond form.
How to become a mortgage licensee in Connecticut
The requirements to become a licensed mortgage professional in Connecticut vary depending on the type of license being applied for. Complete licensing information can be found on the NMLS Resource Center website.
Mortgage Industry Surety Bonds Avaiable 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.
Or, choose your state from the list below:
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia