How much does a Vermont mortgage broker or licensed lender bond cost?
The Vermont Department of Financial Regulation mandates that all mortgage brokers and licensed lenders working within the state secure a surety bond. The amount of this bond varies according to how much the broker processes in loans on an annual basis. If it is between $0 and $2,000,000, the bond amount is at least $25,000. If it falls between $2,000,000 and $5,000,000, the bond amount is at least $50,000. If it lies between $5,000,000 and $15,000,000, the bond requirement is at least $75,000. If it is greater than $15,000,000, then the bond amount is at least $100,000. If licensed lenders process between $0 and 1,000,000, the bond amount is at least $50,000. If it is between $1,000,000 and $15,000,000, the bond requirement is at least $100,000. If it is greater than $15,000,000, the bond amount is at least $150,000. This bond is valid until December 1 of every year.
Due to the variance of bond amounts, our underwriters have to review your credit report before we can provide you a quote for your bond. Unsure if your credit qualifies? There’s no need to worry, as we employ a bad credit bonding program that is designed to help people like you!
Ready to begin the bonding process? Call 1 (800) 308-4358 or click here to submit a bond request form. SuretyBonds.com emphasizes quick and accurate service for all of its customers.
|Bond Type||Bond Amount||Cost by Credit Score*|
|680 and up||679 - 600||599 or lower|
|Mortgage Broker Bond Annually originate $0-$2,000,000 in mortgage loans||at least $25,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
|Mortgage Broker Bond Annually originate $2,000,000.01-$5,000,000 in mortgage loans||at least $50,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
|Mortgage Broker Bond Annually originate $5,000,000.01-$15,000,000 in mortgage loans||at least $75,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
|Mortgage Broker Bond Annually originate more than $15,000,000 in mortgage loans||at least $100,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
|Licensed Lender Bond Annually originate $0-$1,000,000 in loans||at least $50,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
|Licensed Lender Bond Annually originate $1,000,000.01-$15,000,000 in loans||at least $100,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
|Licensed Lender Bond Annually originate more than $15,000,000 in loans||at least $150,000||Starts at 1%||4-8%||Greater than 10%||Apply Now|
Have any questions or concerns? Give us a call at 1 (800) 308-4358 and one of our surety experts will answer any questions you have. Or, take a couple minutes to fill out an online bond request form and one of our experts will facilitate the bonding process for you!
Why do I need this bond?
These bonds help ensure the principal (mortgage broker or licensed lender) adheres to the terms of the bond and avoids facilitating any deceitful or fraudulent business practices. This bond explicitly refers to Title 8, Chapter 73 of the Vermont Statutes Annotated. Other legislation relating to mortgage brokers includes Regulation B-2014-02 from the Vermont Banking Division. Breaches of this legislation include:
- providing a prospective borrower with a rate lock
- accepting discount points or other funds from a prospective borrower for the purpose of buying down a rate of interest
- accepting and keeping escrow waiver fees or other fees associated with terms of the loan
- issuing a commitment letter
- closing a loan in his or her own name
For the full legislation pertaining to Vermont mortgage brokers and licensed lenders, refer to the “Additional Resources” section.
If the principal violates the terms of the bond, the obligee can file a claim against the bond. Valid claims require the surety to compensate the obligee for any losses up to the penal sum of the bond.
Submit a bond request and one of our surety specialists will connect with you and simplify the bonding process for you!
What’s the fine print?
Mortgage broker and licensed lender bonds are required by the Vermont Department of Financial Regulation. The bond amount depends on how much the mortgage broker or licensed lender processes in loans on an annual basis. Since every mortgage broker and licensed lender must renew his or her license before December 1 of every year, bond renewals must also occur before that time (unless bond is issued November 1 or after, then it is valid for next succeeding year). If the surety wishes to terminate the bond, it must send the principal and the Vermont Commissioner of Banking, Insurance, Securities and Health Care Administration a 60-day written notice of cancellation. The surety remains liable for all claims filed within this 60-day period.
How to become a mortgage broker in Vermont
Mortgage brokers and licensed lenders must receive an approved license before they can begin working. Brokers and lenders must obtain their licenses through the Nationwide Mortgage Lending System (NMLS). Information required for license approval includes:
- license application fee
- fingerprints for submission to Federal Bureau of Investigation
- personal history and experience
- authorization for NMLS to obtain an independent credit report and credit score
- authorization for NMLS to obtain information related to any administrative, civil or criminal findings by a governmental jurisdiction
The NMLS website is available in the “Additional Resources” section. There you can find all the information you need to successfully submit a mortgage broker license application.
To be approved for a license, you must first obtain a surety bond. Submit a bond request and one of our surety specialists will help you get the bond you need!
Mortgage Industry Surety Bonds Avaiable 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.
Or, choose your state from the list below:
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington D.C.
- West Virginia