Montana Mortgage Broker Bond Requirements
If you wish to work as a mortgage broker in Montana, you need to obtain a mortgage broker bond.
The Division of Banking and Financial Institutions is the regulatory body in the state that oversees mortgage professionals’ activities. It sets the criteria for obtaining your Montana mortgage broker license. You have to undergo the procedure via the website of the Nationwide Mortgage Licensing System (NMLS).
Why Do I Need This Bond?
The purpose of the surety bond is to ensure you will follow the law in your work as a mortgage professional. It guarantees your compliance with the Montana Mortgage Act and all other applicable rules.
The bond protects your customers against potential legal transgressions on your side. It is a mechanism that can provide financial compensation if you defraud or mislead them about their mortgages. Harmed parties can seek fair reimbursement up to the penal sum of the bond.
Do you need further information about how bonds work for your mortgage business? Check out our ‘What is a surety bond’ guide.
If you have any questions, you can reach us at (866)-450-3412!
What Is the Montana Mortgage Broker Bond Cost?
The surety bond cost that you have to pay is formulated based on the bond amount that you are required to provide.
In Montana, mortgage brokers have to post the following amounts, depending on their annual loan volume:
- Below $50 million - $25,000
- Between $50 million and $100 million - $50,000
- Above $100 million - $100,000
The bond premium that you have to pay is a small percentage of the required amount.
Factors Determining Your Bond Premium
What does your surety look at to set your mortgage broker bond cost? The key factor is your credit score. If your FICO score is above 700, you can get rates as low as 0.75%-1.5% of the bond amount.
The rest of the important indicators that shape up your bond cost include:
- Personal and business finances
- Fixed and liquid assets
- Mortgage industry experience
Check out estimates of the bond cost according to your credit score in the table below.
|Mortgage Broker Bond Cost By Credit Score In Montana|
|Annual loan production||Bond Amount||Bond Cost By Credit Score|
|Above 700||650-699||600-649||Below 599|
|Less than $50 million||$25,000||$188-$375||$250-$750||$375-$1,000||$750-$1,750|
|Between $50 million and $100 million||$50,000||$375-$750||$500-$1,500||$750-$2,000||$1,500-$3,500|
|More than $100 million||$100,000||$750-$1,500||$1,000-$3,000||$1,500-$4,000||$3,000-$7,000|
How to Apply For a Bond
You can get started with your bonding by clicking on the banner below. You have to fill in the application form to get a free quote. Then you can buy your mortgage broker bond online.
Still have questions about the Montana mortgage broker bond? You can contact us at (866)-450-3412.