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How much does a mortgage lender bond cost in Louisiana?
The Office of Financial Institutions requires mortgage professionals who work in the state to post a surety bond. The bond amount is determined based on the amount of total loan volume from the previous year.
Mortgage lenders with less than $100 million in total loan volume during the previous year need a $25,000 bond. Mortgage lenders in their first year of business also need $25,000 in bonding coverage. Mortgage lenders with total loan volume of $100 million or greater in the previous year need a $50,000 bond.
These bonds are subject to underwriting, which means that the amount a client will pay is based on their personal and business credit report. Rest assured knowing our team of experts works personally with you to provide the best rate available, no matter your financial situation.
Call SuretyBonds.com today at 1 (800) 308-4358 or submit an online bond request to receive a free, personalized bond quote. You could pay as little as $250 for this bond.
Why do I need this bond?
This type of surety bond ensures that the principal (lender/broker) will abide by all rules, laws and regulations stated in the Louisiana Revised Statutes Title 6. Some of these laws include, but are not limited to:
- keeping all business records for at least 30 days
- paying necessary funds to clients or the state
- not using fraudulent advertising
- not making false promises
- never knowingly engaging in fraudulent loans
If any of these laws are broken by a bonded mortgage lender/broker, a claim can be made against the bond to provide reparation for damages.
What’s the fine print?
The principal’s name on the bond form must match the full legal name of the applicant exactly, including trade names. The bond amount will be determined by the dollar loan volume of residential mortgage loans according to the Louisiana S.A.F.E. Residential Mortgage Lending Act reported by the mortgage company each year.
Louisiana mortgage lender bonds are continuous until canceled. If the bond is to be canceled, the surety must provide 60 days of prior written notice to the Louisiana Office of Financial Institutions.
How to become a mortgage lender in Louisiana
Becoming bonded is simply the first step toward obtaining your Louisiana mortgage lender/broker license. Other materials that must be submitted with your license application include, but are not limited to:
- fingerprint cards
- police issued background check
- mortgage loan origination agreement
- organization chart
- promissory notes
- proof of full line of credit
Detailed licensing information, including the required application packet, can be found in the “Additional Resources” section below.
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.