Delaware Mortgage Broker Bond Requirements
In order to obtain a Delaware mortgage broker license, you need to get a $25,000 mortgage broker bond.
The State Bank Commissioner regulates the activities of mortgage professionals in Delaware. It sets the requirements that all applicants have to fulfill. However, the Nationwide Mortgage Licensing System (NMLS) conducts the actual licensing process.
Why Do I Need This Bond?
The Delaware mortgage broker bond serves as an extra level of protection for your clients. It guarantees you will follow the law in your work, including Title 5, Chapter 21 of the Delaware Code, and any other relevant laws and regulations.
The surety bond can provide compensation in cases when a party has suffered damages due to your illegal actions. The maximum reimbursement that claimants can seek is up to the penal sum of the bond you have posted.
If you wish to learn more about the way bonds work, you can review our detailed ‘What is a surety bond’ guide.
For more questions, don’t hesitate to call us at (866)-450-3412!
What Is the Delaware Mortgage Broker Bond Cost?
Delaware mortgage brokers have to provide a $25,000 surety bond.
The bonding process entails that you pay a fraction of this amount, which is called the bond premium, or what the actual surety bond cost will be for you. Your surety sets it on the basis of your financial profile.
Factors That Determine Your Bond Premium
The most important factor that influences your premium is your personal credit score. The higher it is, the lower your bond cost would be. For applicants with a FICO score above 700, the usual rates are between 0.75%-1.5% of the required bond amount. In case your score is below 599, you can get a rate as high as 7%.
There are other indicators that your surety considers as well. They include:
- Personal and business finances
- Fixed and liquid assets
- Professional know-how and experience
You can get an estimate of your bond cost based on your credit score by consulting the table just below.
|Delaware Mortgage Broker Bond Cost Based on Credit Score|
|License type||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Delaware mortgage broker license||$25,000||$188-$375||$250-$750||$375-$1,000||$750-$1,750|
How to Apply For a Bond
To get started with your bonding, just click on the banner below. Then complete our online application to receive a free quote. After that, you can purchase your mortgage broker bond online.
Do you have questions about obtaining your Delaware mortgage broker bond? You can reach our bonding specialists by calling us at (866)-450-3412.