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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 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.
Washington Mortgage Broker-Dealer Bonds
Washington mortgage broker-dealer surety bonds are put in place to ensure that principals (mortgage broker-dealers) conduct business in compliance with the orders, rules, and regulations of Chapter 21.20 RCW, which is also referred to as the Washington State Securities Act.
If the principal fails to conduct business ethically and lawfully, a claim can be filed against the bond. If the claim is validated, the bond protects harmed parties from financial loss up to the full penal sum of the bond. The principal must reimburse the surety for all damages paid out.
Mortgage broker-dealer surety bonds in Washington expire when the principal’s registration is withdrawn, terminated through non-renewal, or revoked by the Securities Division. The surety can cancel the bond by giving written notice of cancellation via registered mail to the principal and the division. Cancellation becomes effective 30 days after the division receives the notice and with sufficient proof of the receipt of the notice by the principal.
Washington Mortgage Broker Bonds
Surety bonds to operate mortgage broker businesses in Washington are put in place to ensure that principals (mortgage brokers) and their employees, and loan originators 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.
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.