Georgia Mortgage Bond Markets
Georgia Bond Requirements
To operate in the state of Arizona, mortgage brokers are required to have a surety bond of $50,000; on the other hand mortgage lender are required to have a bond of $150,000. For comparison, most states require broker bonds between $20,000-40,000. The size alone is not large enough to concern an underwriter (some state broker bonds exceed $100,000); but you can expect the underwriter to give the application a detailed examination. Some companies may require additional information or cash verification.
Underwrites look for 670 or better for applicants credit scores. Underwriters also look for solid business financials (or a resume rich in industry experience), and home ownership, when judging who qualifies for the standard market. Of course applicants are examined individually and placement can very for numerous reasons. Should an applicant not place in the standard market please note: Bryant Surety Bonds, Inc. can approve applicant´s regardless of their credit score through our exclusive mortgage broker bond program. Better still, this program gives us unbeatable rates for those who do qualify for the standard market.
A high-risk market is for people with bad credit, or no credit at all. In the past (or currently with agencies that do not have an intimate knowledge of the bonding industry) applicants with poor credit would be declined, as not all bonding companies are comfortable with the risk this group represents. Through years of experience, and several well-established relationships, Bryant Surety Bonds is able to place bonds for those mortgage brokers in Georgia that are deemed high risk.
Georgia Bond Form
Georgia is particularly hard state to write in because the bond form they require lacks the language that most companies look for, specifically aggregate language. An aggregate clause caps the total amount of claims to the amount of the bond. For example a $50,000 dollar bond with aggregate language will allow for two $25,000 claims, or five $10,000, but never allows the total of all claims to exceed $50,000. In Georgia, and single claim cannot exceed $50,000, but there can be limitless claims. Though this allows for tremendous protection for the public, this can be troublesome for the surety as well as the broker (as the surety will look to recoup it’s money on all claims from the principle).
Additional State Licensing Requirements
In addition to the surety bond information above, here is some helpful information, and addition state requirement that must be meet in order to operate as a mortgage broker in the state if Georgia:
- The Georgia Department of Banking and Finance processes Mortgage Broker Licenses in Georgia. 1-602-255-4421
- The state requires applicants to pay a one time investigation fee of $250, as well an annual license fee of $500.
- Georgia also requires CPA audited financial statements and a copy of income tax returns and a passport size picture of the applicant. The applicant must also have a net worth of $25,000.
- Two recent (Two of the last five years to be safe) years experience, or proof of a higher education is required.
- Original duplicate fingerprints (fee of $30/set) must be provided as well as a credit check. Note that past criminal acts that have not been pardoned will automatically result in the declination of the applicant
- Mortgage brokers licensed out of state must have a physical location within the state. Furthermore the location cannot be a P.O. box and must employ at least one employee. If the broker´s home state is not Georgia, they may still obtain a Georgia license if their home state does not require a physical location in it.
*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.