What is a Mortgage Broker Bond?

A mortgage broker bond guarantees that mortgage brokers will comply with state regulations and requirements in conducting business. The bond also protects clients of brokers who are harmed by a broker’s actions, such as fraud, misrepresentation, etc.

How does this bond work?

Like all bonds, mortgage broker bonds work as three-party agreements between:

  • The obligee (the state and consumers)
  • The principal (the mortgage broker)
  • The surety bond company that provides the bond

The bond’s function is to serve as protection for consumers who are obtaining a mortgage with the help of the mortgage broker. If a consumer suffers financial harm because of a mortgage broker’s actions, they can make a claim against the bond. If their claim is legitimate, the surety that backs the bond will then compensate them for these losses. The broker will then need to repay the surety in full for any compensation it extends.

While procedures for receiving a mortgage broker license differ from state to state, obtaining a mortgage broker surety bond is almost always required.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

How Much Does a Mortgage Broker Bond Cost?

The cost of your bond is equal to a percentage of the total amount of the bond.

The amount of your bond is determined on a state level. Bond amounts and renewal dates differ from state to state. The bond amount is the maximum amount of compensation that a surety may extend under a bond claim.

What determines the cost of my mortgage broker bond?

The most important factor determining the cost of your surety bond premium is your personal credit score. Sureties may also consider your personal and business financials, as well as other factors but your score remains primary.

If you have good credit, around or above 700 FICO, the cost of your bond premium will range between 1%-4% of the total bond amount.

Get an estimate of your bond cost through our bond calculator below!

+ -
+ =

Surety Bond Cost Calculator

* This form is for a rough estimate only.

Tell us where to send you your FREE estimate

SEND ME MY ESTIMATE!

We'll never share your information with third parties

Back to Surety Bond Cost Calculator

Thank you for your request!

The ballpark estimate on your premium is: $100 - $167

We've send a copy of your estimate on your email as well.

Want an exact quote? Simply fill out our online application It's fast and 100% free!

Get a free exact quote Get another estimate

Can I get bonded with low credit?

If you have bad credit, bankruptcies or other financial or legal complications, some surety bond companies may decline issuing a bond for you.

With us you can still obtain your mortgage broker surety bond, though at slightly higher rates - between 5%-7.5%.

By improving your credit score and financial standing, you will be able to lower your rate on an annual basis.

How to Reduce the Cost of Your Bond Premium

You can reduce your surety bond premium over time by:

  • Improving your credit score
  • Providing strong financial and business statements or proof of liquid assets
  • Working with a professional and certified surety bond agency

How to Get Your Mortgage Broker Bond

To get started with your bond application or to simply request a free quote, complete our bond application form!

You can also give us a call at (866)-450-3412 if you want to receive further information or need assistance during your application process.

To get a clearer picture of your business and financial information, the surety may request further documents. Once all your documents have been received and the surety has assessed them, it will underwrite your bond.

Mortgage broker bonds are usually renewed on a yearly or bi-yearly basis, along with your mortgage broker license.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

Mortgage Broker Bond Renewal Deadlines

See below for particular information on some of the renewal dates across states:

Indiana Mortgage Broker Bonds expire on December 31st every year, and must be renewed between November 1st and December 31st.

Michigan Mortgage Broker Bonds: Both first and secondary mortgage broker bonds in Michigan run from January 1st through December 31st.

Mississippi Mortgage Broker Bonds: Mississippi requires their mortgage bond to expire on September 30th.

Ohio Mortgage Broker Bonds: Mortgage brokers bonds in Ohio expire on April 30th each year.

Texas Mortgage Broker Bonds: Broker Bonds in Texas are renewed on a bi-annual basis and expire on December 31st.

Choose Your State


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.