Louisiana Mortgage Lender Bond Guide
Louisiana mortgage industry bonds ensure that licensed mortgage professionals follow state laws and industry regulations. These surety bonds protect consumers from illegal and unethical mortgage lending practices.
Bond Overview
- Purpose: To guarantee licensed mortgage lenders follow state regulations
- Who Needs It: Mortgage lenders and residential loan originators in Louisiana
- Regulating Body: The Louisiana Office of Financial Institutions
- Required Amounts: $25,000–$50,000 based on the license type
- Premium Rates: Credit-based, starting at 0.8% of the bond amount
Read on to learn the ins and outs of the bonding process.
How Much Do Louisiana Mortgage Lender Bonds Cost?
The Office of Financial Institutions requires mortgage lenders and residential loan originators in Louisiana to be bonded. The bond amount is determined based on the amount of total loan volume from the previous year:
- New mortgage lenders or residential loan originators: $25,000 bond
- Lenders/originators with under $100 million in total loan volume: $25,000 bond
- Lenders/originators with over $100 million in total loan volume: $50,000 bond
These bonds are subject to underwriting, which means your price will be based on your personal credit score. With excellent credit, you could pay as low as 0.8–1% of the bond total. If poor credit adversely impacts your rate, we offer premium financing options to lower the upfront cost. Request your free bond quote now!
Mortgage professionals who work in several states often need multiple surety bonds. If you work as a mortgage professional in other states, we offer mortgage industry license bonds nationwide.
What Is a Louisiana Mortgage Lender or Loan Originator Bond?
Residential loan originator and mortgage lender bonds ensure that the principal (lender/originator) will abide by all rules, laws and regulations stated in the Louisiana Revised Statutes Title 6. Some of these rules include:
- Maintaining 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 the principal violates the bond terms, the surety will pay for claims up to the full bond amount. The principal is then responsible for reimbursing the surety.
How to Get a Louisiana Mortgage Lender Bond
With SuretyBonds.com, you can get your Louisiana mortgage lender or loan originator bond in just three easy steps:
- Apply for your surety bond online, providing your NMLS License number and type
- Receive a free quote within one business day
- Checkout on our secure, online portal
Once you checkout, we'll provide an instant email copy and upload your bond directly to the NMLS on your behalf.
When Do I Need to Renew My Bond?
You must renew your bond annually to maintain active coverage. Your SuretyBonds.com account manager will contact you 90 days before the end of your bond term to process your renewal payment.
These bonds remain continuous until canceled. To cancel the bond, the principal or surety must send 60-day’s written notice to the obligee.
How to Get a Mortgage License in Louisiana
Mortgage lenders and residential loan originators in Louisiana must be licensed with the Office of Financial Institutions. Use the NMLS checklists below to review all the licensing requirements:
