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How much does a Vermont loan service bond cost?
If you or your company receive scheduled periodic payments from borrowers of residential mortgage loans (including escrow accounts) and make the payments to a third party or owner of the loan, the Vermont Commissioner of Financial Regulation requires you to post a surety bond. Loan servicers are required to submit a $100,000 surety bond, while loan solicitations only require a $25,000 bond.
Both loan servicer bonds and loan solicitation license bonds are subject to underwriting. This means that your premium is calculated by the financial credentials of your credit report. Highly qualified applicants are typically quoted between 1% and 3% of the total bond amount.
Our bonding professionals know surety bonds like the back of their hand. Submit a bond request and a specialist will contact you to begin your personalized bonding process.
Why do I need this bond?
By posting a bond, the principal (loan servicer) promises to faithfully conform to all provisions of the Loan Servicers Act (Title 8 Vermont Statutes Annotated, Chapter 85) including all rules and orders made by the Commissioner of Financial Regulation. If the principal practices unethical acts under this bond, any person who suffers a loss or damage will be indemnified. Unethical acts include:
- obtaining property by fraud or misrepresentation
- using any unfair means in servicing a loan
- misapplying loan payments to the balance of a loan
- failing to manage escrow accounts in accordance with provisions of the Loan Servicers Act
Have a question about your bond? Fill out a bond request or call 1 (800) 308-4358 to speak with a specialist today.
What’s the fine print?
All bonds will remain in full force unless terminated by the surety. If the surety chooses to terminate a bond, a written cancellation notice must be mailed to the principal and Commissioner of Financial Regulation 60 days prior to the given termination date.
How to become a loan servicer in Vermont
To become a licensed loan servicer, you must first register as an agent with the Vermont Secretary of State. License applications must be fully completed and be accompanied with the following documents:
- $1,000 licensing fee
- $1,000 investigation fee
- $100 NMLS processing fee
- surety bond
- tax certification
- financial statement
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.