Washington Mortgage Broker Bond

How much does a mortgage broker bond cost in Washington?

The Washington State Securities Division requires mortgage broker-dealers to post $100,000 surety bonds. Mortgage brokers and independent contractor mortgage brokers must post surety bonds in amounts between $20,000 and $60,000. Applicants should verify their required bond amount with the state prior to bonding.

These bonds require underwriting consideration, so the price you’ll pay for your bond depends not only on your required bond amount but also on a review of your application. The cost of these bonds starts at 1% of the total bond amount for applicants considered to be highly qualified.

Surety bonds to operate mortgage broker businesses with and without independent contractors in Washington are put in place to ensure that principals (mortgage brokers) and their employees, loan originators and, if applicable, independent contractors abide by each and every provision of Chapter 19.146 of the Revised Code of Washington, which is also known as the Mortgage Broker Practices Act, and all rules made by the Director of the Department of Financial Institutions. If the principal fails to comply with these terms, the bond protects any person who suffers financial loss as a result of the principal’s actions up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.

Washington mortgage broker business bonds remain effective until canceled by the surety. The surety can cancel the bond by giving written notice of cancellation to the director. Cancellation becomes effective 30 days after the notice is received.

Visit the Washington State Department of Financial Institutions website for more information about how to become licensed as a mortgage broker.

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.