Washington Mortgage Broker Business Bond

Get a Free Quote for Your Washington Mortgage Broker Business Bond Today

Who is Required To Purchase a Washington Mortgage Broker Bond?

Washington State's licensing process for companies in the mortgage industry is much simpler compared to many states.

Washington currently issues a mortgage broker license and an individual loan originator license.

There is an exempt mortgage broker registration if you can meet the requirements.

Only the company mortgage broker license is required to purchase a mortgage surety bond.

The amount is based on the total loan origination volume. The details will be covered below.

 

Why is a Washington Mortgage Broker Business Bond Required?

As we've mentioned, the Washington Department of Financial Institutions sets the licensing requirements for individuals and businesses in the mortgage industry.

These requirements are designed to identify the businesses that have the resources and background to be successful and service the Washington public with good practices and ethics.

Despite the licensing requirements, every year there will be licensed companies that intentionally and financially harm their customers to make more money.

Examples of fraudulent mortgage actions can include:

• Approving a borrower for a loan they can't afford
• Helping a borrower get approved for a loan by providing false information
• Hindering a borrower from getting approved by providing false information
• Pressing a borrower to purchase a high commission loan to make more money
• Creating fabricated fees and higher fee structures

The mortgage broker surety bond is the financial protection the customer has available if they are harmed by a mortgage company. If harmed, the customer can make a claim against the mortgage bond for financial compensation.

The total compensation available only extends to the amount of the bond.

 

What Are The Washington Mortgage Broker Bond Amounts?

Remember only a mortgage broker company is required to purchase a surety bond.

The bond amount is based on the total dollar amount of mortgage originated in the previous calendar year.

Here are the bond amounts with the minimum if you're a new company with no history of loan origination.

As you can see the bond amount structure is very straightforward.

When your license renews each calendar year, you'll re-assess the total dollar amount of loans originated and adjust your bond amount as necessary by March 31st.

You'll learn the process for adjusting your loan below.

 

How Much Does a Washington Mortgage Broker Bond Cost?

The price you'll pay to purchase your mortgage broker bond will be custom to your specific situation.

A surety, an insurance company that underwrites mortgage surety bonds, will conduct an analysis primary based on these three factors:

• Personal credit of the individual or business owner or owners
• Mortgage and financial lending experience
• Prior bond claims if the individual or owner has been licensed in the past

Based on this analysis, the surety will quote a rate.

There are many different sureties who underwrite mortgage broker bonds. And each surety has their own internal factors for determining their rate.

This means rates can (and do) vary widely. We've seen rates come in one to two, sometimes more, percentage points different.

At Surety Bonds Direct, we are your mortgage surety agent. It's our job to find you the lowest possible price so you can save money.

• We price shop for you
• Find the lowest possible price
• And help you purchase your surety bond.

It costs you nothing to have us find you the lowest price and once you get your pricing, you're under no obligation to purchase. Obtaining pricing is free information.

There's no reason to request your free quote right now or call a bond specialist at 1-800-608-9950.

 

Mortgage Broker Bond Price Example

Let's look at the $40,000 bond amount for mortgage brokers.

Pay attention to the rates and how one percentage point can make huge difference in the price, saving you hundreds of dollars.

Saving $200 to $400 is a big deal. It's enough for you to pay about half of the required fees to obtain your Washington mortgage broker license.

While this helps you get an idea for what you may pay, you can get your exact price within one business day by requesting a quote now.

Remember, there is no cost to have a bond specialist find you pricing. Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase. Quotes are good for 30 days.

 

How To File Your Mortgage Broker or Lender Bond?

Once you agree to a price, purchasing your bond only requires completing an online checkout form.

After your payment is processed, our issuance team will immediately begin the process to issue your bond with the National Multi-State Licensing System.

We provide you with detailed instructions to help us file your bond for you. The process takes only a few minutes.

 

How Long Does a Washington State Mortgage Broker Bond Last?

Every Q4 Mortgage Call Report is when you have to reassess your bond amount based on your previous year in business.

Your bond itself has an active term that is 12 months from an effective date you choose when you purchase your bond. This effective date is the active date your bond assumes coverage.

12 months from this date, your bond will have to be renewed, unless you need to change your bond amount after the calendar year.

 

How Do You Renew a Mortgage Broker Bond?

Renewing a mortgage broker and lender bond is easy. As your bond expiration date approaches, your bond specialist will contact you 30 to 45 days in advance to ensure you don't miss paying the renewal premium.

Your bond specialist will have renewal pricing already quoted allowing this process to get finished with little headache or effort.

Once you pay the renewal premium, your bond remains active. You don't have to do anything.

 

Mortgage Broker Business Bonds And Getting Your Washington Business License/Registration

Washington has a very helpful website outlining the process to get your license issued. You can also find information on the NMLS checklist compiler.

Here's a brief breakdown of each step.

 

Step 1: Business Plan

You must outline your business plan including detailed breakdowns of:

• Marketing strategies
• Product offering
• Target audiences

 

Step 2: NMLS Registration

You will need to create an account and profile with the NMLS. This is where you will upload all of your application paperwork including e-filing the surety bond.

 

Step 3: Management Chart

Outline the management charge for the company including:

• Internal divisions
• List of the officers
• List of all the managers

If your company is not yet this large, you must include all of the owners and officers.

 

Step 4: Trust Accounting

Outline a document stating whether you're required to have a trust account.

This account is primarily used if you accept money on behalf of borrowers for the payment of third party service providers.

 

Step 5: Purchase Your Surety Bond

Follow the steps outlined above to purchase the correct surety bond amount.

 

Step 6: Designated Broker Materials

All licensed brokers must have a Designated Broker requiring a separate licensing and testing process.

 

Step 7: Complete the Application and Submit

Complete your NMLS application with the required proof and scores from all the above steps.

Additional Washington Mortgage Broker Business Bond Resources & Links