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How much does a mortgage loan broker bond cost in Kentucky?
The Kentucky Department of Financial institutions requires mortgage loan brokers to post $50,000 surety bonds.
These bonds are subject to underwriting, which means the price you’ll pay is based on a review of your personal credit report. Annual premiums start at just $375 for highly qualified applicants. Request your free bond quote now!
Submit a bond request or call 1 (800) 308-4358 to begin our fast and easy bonding process! We can typically provide your free bond quote within one business day of submitting your application.
Why do I need this bond?
By posting a Kentucky mortgage loan broker bond, principals (mortgage loan brokers) pledge to fully comply with all the provisions of the KRS statute Chapter 286.8. Specifically, these bonds ensure that if the principal partakes in any fraudulent act and consumers are harmed as a result, the surety will compensate all harmed parties up to the full bond amount.
Prohibited acts under this bond include:
- employing a scheme, artifice or device to defraud
- failing to disburse funds
- delaying the close of a mortgage loan to increase fees, costs and interest
- obtaining property by misrepresentation
- failing to make disclosures
- failing to comply with federal laws
Ultimately, the principal must reimburse the surety for all damages paid out.
What’s the fine print?
Kentucky mortgage loan broker bonds remain continuous unless the surety chooses to cancel the bond. For cancellation, the surety must send a written cancellation notice to the commissioner 30 days prior to the effective cancellation date.
All Kentucky bonds are subject to a state-imposed 1.8% surcharge.
How to become a licensed mortgage loan broker in Kentucky
To act as a broker in the Commonwealth of Kentucky, individuals must be licensed. To be eligible for licensure, applicants must:
- Complete 20 hours of pre-licensing education courses and eight hours of annual continuing education courses.
- Maintain a documented funding source of at least $1,000,000.
- Maintain a net worth of more than $100,000.
- Obtain a $50,000 surety bond.
- Pay the $750 licensing feel and a $400 fee per branch office, as well as a processing fee of $100 per office and $20 per branch.
- Provide sufficient proof that the managing principal has a minimum of two years’ experience working in the mortgage industry.
- Upload a state-issued document demonstrating that the corporation or LLC is authorized to do business in the state.
- Upload a compiled financial statement prepared by a certified public accountant.
- Utilize the NMLS for electronic application and submission of materials.
Note: All licenses must be renewed by November 30 of each year.
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.