Wisconsin Mortgage, Broker, Banker or Loan Company Bond

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Who is Required To Purchase a Wisconsin Mortgage Surety Bond?

 

Mortgage Bankers

A mortgage banker is a company responsible for funding or underwriting mortgages.

This license does not apply to:

• The Department of Veteran Affairs
• A depository institution
• A subsidiary that is fully owned and controlled by a depository institution

All mortgage banker licenses are required to purchase a mortgage banker surety bond with the value of $300,000.

If a depository institution wishes to apply for a registered entity status, they will have to purchase this $300,000 surety bond.

 

Mortgage Brokers

A mortgage broker company is responsible for helping customers find the best mortgage loan that fits their:

• Personal financial requirements
• Property requirements

Mortgage broker licenses do not apply to depository institutions or their fully owned subsidiaries.

The amount of the Wisconsin mortgage broker bond is $120,000.

Individual mortgage loan originators are covered by the company surety bond.

 

Wisconsin Mortgage Surety Bond Amounts

 

Why is a Wisconsin Mortgage Bond Required?

The Wisconsin Department of Financial Institutions sets the licensing requirements for mortgage businesses in the state.

This includes a variety of steps like:

• Meeting net-worth requirements
• Completing a criminal background check
• Providing business formation documents
• Among other steps

The Department of Financial Institutions' goal is to issue mortgage licenses to only the most qualified and deserving companies.

And yet even with these licensing standards in place, each year there will be a handful of licensed mortgage professionals who purposefully:

• Approve a borrower for a loan they can't afford
• Help a borrower get approved for a loan by providing false information
• Hinder borrowers from getting approved by providing false information
• Push borrowers towards high commission loans to make more money
• Create and charge false fees

The Department uses the surety bond requirement as the primary tool to keep mortgage professionals accountable.

If a mortgage broker or lender is found guilty of these or similar acts, their customer can make a claim against the bond for financial compensation.

The maximum level of compensation extends to the amount of the mortgage bond stated above.

 

How Much Does a Wisconsin Mortgage Broker Bond Cost?

Wisconsin mortgage surety bonds are a credit driven bond.

Similar to the credit requirements during the licensing process, the surety wants to make sure the owners of a mortgage business are reputable.

The surety is an insurance company that underwrites mortgage surety bonds. The surety uses three primary factors to determine a rate.

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

From this analysis, the surety quotes a rate. This rate multiplied by your bond amount is the price you'll pay.

 

How To Save Hundreds Even Thousands Of Dollars Purchasing Your Bond

We are Surety Bonds Direct, a specialized surety agency. It's our job to price shop for you using the highest A rated sureties in the market.

Because each surety uses their own evaluation process, the rates they quote end up being different.

We've seen rates for the same bond come back 2 percentage points different.

And this is how you can save a lot of money when you purchase a surety bond.

As an agency, we price shop for you to find the lowest possible price.

Once you get your pricing, you're under no obligation to purchase. This is free information you can use to plan. Plus all quotes are good for 30 days.

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 Examples

Let's look at both $120,000 and the $300,000 bond amounts for mortgage brokers and lenders.

Pay attention to the rates and how one percentage point can make huge difference in the price.

 

Mortgager Banker Bond Price Examples

You can see the price differences are drastic. You can save enough money to pay for the rest of the application fees.

Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase. Remember, quotes are good for 30 days.

 

How To File Your Mortgage Broker or Lender Bond?

Once you receive your pricing and you're ready to purchase, you just need to complete an online order form.

As you're familiar with now, the entire mortgage licensing process is managed by the National Multi-State Licensing System (NMLS).

Once your payment is processed, our issuance team will begin preparing your bond and the process to e-file your bond with the National Multi-State Licensing System.

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

 

How Long Does a Wisconsin Mortgage Broker and Lender Bond Last?

Every mortgage banker and broker bond has a bond term or 12 months from the effective date. This effective date is an activation date you choose when you want the bond to become active.

As your bond's expiration date approaches, you will need to renew the 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.

All mortgage bonds are continuous. This means once you pay your renewal premium, your bond remains active with the NMLS. You don't have to do anything extra.

 

Mortgage Bonds And Getting Your Wisconsin Business License/Registration

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As you make your way through the licensing process, it's best to use the NMLS and their checklist compiler for all the required steps in the process.

Here are the major steps shared between a broker and banker license.

Business Formation Documents

Make sure you have all of your business formation documents for your appropriate business structure.

This includes listing all Trade Names or doing business as names. You're only allowed to have 5 - maximum - number of alternate trade names.

You must also include your Certificate of Good Standing from the Secretary of State.

 

Owner Financial Statements

Both the broker license and the banker license have a net-work requirement of $100,000 and $250,000 respectively.

Your financial statements must be prepared by a CPA and they need to prove you meet these net-worth requirements.

 

Credit Report and Explanation

All control persons in the business must provide a credit report. This is to show financial responsibility above and beyond the surety bond requirement.

If there are any damaging incidents on your report, you need to provide a full explanation.

Purchase Your Surety Bond

The last major requirement is to purchase your surety bond as described above.