Overview of Georgia Mortgage Broker Bond Requirements

Applicants for a mortgage broker or mortgage lender license in Georgia must obtain a mortgage broker bond as part of the licensing process. The former must obtain a bond in a minimum amount of $150,000, and the latter a bond in a minimum amount of $250,000. Both types of applicants must submit their bond through the Nationwide Multistate Licensing System & Registry (NMLS) when applying for or renewing their license.

The bond guarantees brokers’ and lenders’ compliance with Official Code of Georgia Annotated (OCGA) TITLE 7 Chapter 1 Article 13, as well as the Residential Mortgage Act. It also guarantees that any fees, fines or penalties owed by the broker or lender to the state will be paid in full.

If these conditions are violated by the broker or lender, a claim can be filed against their bond to secure compensation. Such compensation, when a claim is made, can be as high as the full amount of the bond, also known as its penal sum.

If you have not been bonded before, you may want to see our detailed ‘What is a surety bond’ guide for a full explanation of what bonds are and how they work!

Start your surety bond application today! Why us?
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In the sections below you can find out more about the cost of your bond, what a bond claim is and how you can get bonded.

You can always call us at (866)-450-3412 to speak to one of our bond professionals if you have any questions related to surety bonds!

Bond Cost

To get bonded you must pay a surety bond premium.Your premium is equal to a small percentage of the total amount of the bond.

Typically, when you apply the surety company will determine your bond premium primarily based on your personal credit score but also based on your financial statements, assets, liquidity and more. The higher an applicant’s credit score, the lower their rate is likely to be. Applicants for this bond with scores over 700 FICO can often get bonded for as little as .5% of the total bond amount.

In other words, a mortgage broker with a rate of .5% on their bond will have to pay a $750 premium to get bonded.

You can find out how much exactly your bond will cost by submitting a bond application form. We will provide you with a free quote and exact quote on your bond!

Bad Credit Bond Program

Even if your credit score is far from perfect, you can get bonded as easily and quickly as everyone else. Our Bad Credit Program is designed to make bonds available to those among our applicants whose credit score is currently low.

Because sureties perceive a higher risk in issuing bonds for applicants with lower credit scores, rates for such applicants are typically higher. But surety bond rates are not fixed and can improve over time as you also work on increasing your credit score.

To request a quote or find out more about getting a bond with low credit, see the program page!

Claims Against Your Bond

A claim against a surety bond may occur when the bonded party violates the conditions of the bond agreement. These conditions typically include specific obligations and requirements the bonded party must comply with.

For example, § 7-1-1003.2. of the OCGA states that the bond is put in place for both Georgia brokers and lenders to guarantee their compliance with the OCGA and the Georgia Residential Mortgage Act and all of their provisions. The bond is conditioned to cover any damages that may arise out of a broker’s or lender’s noncompliance with the above laws. Such damages, according to the OCGA may also include fines, fees or penalties that the bonded side must pay to the state of Georgia will be covered.

When a bond claim is filed due to a violation, and no other solution is found, the surety which backs the bond will extend compensation to claimants which can be as high as the full amount of the bond - $150,000 for brokers, and $250,000 for lenders.

In return brokers and lenders who have had a bond claim covered by their surety must repay the surety in full. That’s the nature of bond agreements, and because bond claims can be costly and difficult to deal with, it is always best to steer clear of any situation that may give rise to a claim.

Apply for Your Bond Here!

To get started, complete and submit our bond form. We will contact you shortly afterwards to provide you with your free bond quote as well as additional details on finalizing your application.

It will take around two working days for the surety to issue your bond. After that we will forward the bond to you via standard mail as well as via email.

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

If you want to know more about the bonding requirements and conditions for broker and lenders in Georgia, call us at (866)-450-3412!


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.