Illinois Exempt Entity Processor Registration Bond Guide
Exempt entities that sponsor loan processors in Illinois must file a surety bond for state registration. Learn all about the bond requirements and process in this guide.
Bond Overview
- Purpose: To protect mortgagees from harm due to fraudulent loan processing activities
- Who Needs It: Exempt entity loan processors in Illinois
- Regulating Body: The IL Department of Financial & Professional Regulation (DFPR), Division of Banking
- Required Coverage: $50,000
- Premium Rate: Credit-based, starting at $375
What Is an Illinois Exempt Entity Processor Registration Bond?
Illinois requires exempt entities that sponsor loan processors to be bonded to protect consumers taking out residential mortgage loans.
An Illinois exempt entity processor registration bond creates financial liability if a sponsored loan processor breaks state rules or regulations. The bond gives any harmed consumers an avenue for financial recourse.
How Much Do Exempt Entity Processor Registration Bonds Cost in Illinois?
The state-required $50,000 bond costs a small percentage of the coverage amount — typically 0.75% to 10%. With an excellent credit score, you could pay as low as $375 for the 1-year term.
Apply for a free, personalized quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Illinois Exempt Entity Processor Registration Bond Work?
This type of surety bond creates a legally-binding contract between the following parties:
- Principal: The exempt entity filing the bond
- Obligee: The Illinois DFPR’s Division of Banking requiring the bond
- Surety: The provider issuing the bond
As the principal, you are responsible for upholding the bond terms by following state rules and regulations.
If you act illegally or unethically, harmed consumers can file bond claims to reimburse damages up to $50,000.
Who Needs an Exempt Entity Processor Registration Bond?
Under the Residential Mortgage License Act of 1987, any exempt entity that processes residential mortgage loans by sponsoring individuals in Illinois must file this bond.
Note: We also issue Illinois exempt company registration bonds for exempt companies that employ mortgage loan originators.
How Do I Get an Exempt Entity Processor Registration Bond in Illinois?
With SuretyBonds.com, the bonding process is quick and easy, just follow these steps:
- Apply: Submit a quote request form
- Quote: Receive your free quote within one business day
- Purchase: Sign the indemnity agreement and pay your invoice online
We’ll upload the bond instantly to the NMLS on your behalf.
How Fast Can I Get My Bond?
We issue quotes within one business day or less. Then, you can purchase your bond online at your convenience.
Can I Get Bonded With Bad Credit?
These bonds expire annually. We’ll contact you starting 90 days before expiration with reminders. To renew, simply pay your renewal invoice.
The surety can cancel the bond at any time by providing 30-days notice to the Division of Banking.
How Do I Renew My Exempt Entity Processor Registration Bond?
These bonds expire annually. When you work with SuretyBonds.com, we’ll send you renewal notices starting 90 days before the expiration date.
Simply pay your renewal invoice to extend the bond term for another year.
