Alabama Mortgage Broker Bond

    Alabama mortgage brokers have been regulated since January 1, 2002 when the Mortgage Brokers Licensing Act took effect. This act is enforced by Alabama’s State Banking Department. Since this act took effect, few changes have been made to the legislation, and when compared to other states, Alabama´s regulations could be viewed as lenient.
    The licensing act requires the applicant´s officers and principles who actively engage in the business receive 12 hours of pre-licensure education, maintain a $25,000 surety bond, and a physical presence in the state. The act also requires the applicant to submit 6 letters of reference, including 3 that show the applicant´s name and reputation, and three that show the applicant´s industry experience/expertise.
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Alabama Mortgage Bond Markets

Bad Credit Mortgage Broker Bonds

Applicants with a low credit score, or public records (Bankruptcy, Liens, Collection, or Civil Judgments) will find a difficult time getting bonded. Bryant Surety Bonds, inc offers a Bad Credit Surety Bond Program that is specially tailored to your needs and can get you approved. This program is available for high risk mortgage brokers.

Alabama Licensure Requirements*

Applicant Requirements:

  • Age: No Requirement
  • State Residency: No Requirement
  • Experience: No Requirement
  • Education: Officers and Principals who are actively engaged in the daily operation of the mortgage company must complete 12 hours of pre-licensure education.
  • Continuing Education: No Requirement
  • Examination: No Requirement
  • Fitness For Licensure: Applicant must submit 6 letters of reference. 3 of these letters must show applicants character and reputation in the community. 3 letters must show applicants industry experience.
  • Net Worth: Applicant must maintain a net worth of $25,000. A recent financial statement is required as proof of net worth.
  • Surety Bond: $25,000
  • Background Check: A Criminal background, and credit history check will be performed.
  • Managing Principal: No Requirement

State Licensing Fees:

  • Initial Application: $100 Investigation Fee, $500 Licensing Fee
  • Branch Application: $100 Investigation Fee, $500 Licensing Fee
  • Renewal Application: $500 Licensing Fee, $500 Branch Renewal Fee

Employee Requirements:

  • Age: No Requirement
  • State Residency: No Requirement
  • Experience: No Requirement
  • Education: No Requirement
  • Continuing Education: No Requirement
  • Examination: No Requirement
  • Fitness For Licensure: No Requirement
  • Net Worth: No Requirement
  • Surety Bond: No Requirement
  • Background Check: No Requirement
  • Managing Principal: No Requirement
  • Exemptions: No Requirement
  • Licensing Fee: No Requirement
  • Renewal Fee: No Requirement

Branch Offices:

  • In State Requirements: A License is required for in-state offices.
  • Licensure Requirements: A license is required for each branch office.
  • Branch Manager: No Requirement

Exemptions:

  • Entities: Regulated financials institutions, insurance companies, lawyers, consumer loan companies, and securities broker-dealers.
  • Safe Harbor: Any person who acted as a mortgage broker on no more then one mortgage loan in the preceding calendar year.

*Information for state licensing is provided as a guide, always verify with the state that the information is correct.

How to apply:

1.) Visit the commercial application page.
2.) Complete our online application.