Overview of Nevada Mortgage Broker Bond Requirements
Nevada Revised Statutes (NRS) chapter 645B requires anyone in the state who wishes to become a residential or commercial mortgage broker to get licensed and bonded. Applicants for such a license are required to post a Nevada mortgage broker bond to the state Division of Mortgage Lending.
The purpose of the mortgage broker bond is to provide protection to the state and the public against mortgage brokers who violate the NRS, causing damages or losses. It guarantees compensation to claimants up to the full amount of the bond, the so-called penal sum. This compensation is extended by the surety company which backs the bond, when a claim is made against the broker’s bond.
Check out our in-depth explanation of how surety bonds work if you want to know more about this process. You can also learn more about other bonding requirements in the state of Nevada.
Keep reading to find out how much it may cost you to obtain your mortgage broker bond, how claims against the bond occur, how you can obtain your bond, and what other important requirements you need when applying for a Nevada mortgage broker license.
For more information regarding the mortgage broker bonding requirements in Nevada, just call us at 866.450.3412 to speak to one of our agents!
Nevada Mortgage Broker Bond Cost
To obtain or renew their Nevada mortgage broker license, individuals must either post a $50,000 or a $75,000 bond.
Which bond applicants will require depends on their annual loan production volume. Applicants with a loan production below $20 million a year need a $50,000 surety bond, while applicants with a loan production above $20 million need a $75,000 bond.
The bond amount is not the same as your bond cost. The cost of getting a bond is a small percentage of the total amount of your bond. This percentage can be as small as 0.5% of the total amount for applicants with very high credit scores. This is equal to $250, in the case of the $50,000 bond.
Surety bond cost is primarily determined by an applicant’s personal credit score. Other factors, such as their financial statements, credit report, and professional experience also influence the rate that the surety company may offer.
Getting Bonded With Bad Credit
Even if an applicant has a low credit score, they can still get bonded. This is made possible through our Bad Credit Program, which is designed to cater to the needs of our customers who have a low or nonexistent credit score.
To get bonded under this program, you will need to pay a premium in the range of 2% to 10% of your bond’s amount. How much exactly you will need to pay is determined when you apply for your bond. We work with some of the best sureties in the country, all of which are A-rated and T-listed. This guarantees that the bond you get with us is backed by a reliable, secure and stable company.
Visit the program’s page for more information regarding getting your Nevada mortgage bond with bad credit.
Claims Against Your Mortgage Broker Bond
If you don’t comply with the provision of the NRS, a claim can be filed against your bond.
Specifically, a claim can be filed as a result of damages suffered by the public or the state, due to your violation of the provisions of chapter 645B of the NRS, which include: fraud, dishonesty, misrepresentation, concealment of material facts, or any other type of violation of these provisions which results in harm, damages or losses to someone.
When a claim is made against a bond, your surety company will investigate the claim, and– if it finds it to be legitimate– compensate claimants up to the full amount of your bond. If this happens, you’ll be required to repay the surety for any damages or losses it has covered.
To avoid bond claims, get to know the provisions of the NRS. If you have any doubts about your compliance, consult the Division of Mortgage Lending and your surety company. Staying out of bond claims saves you both money and time.
Get Your Nevada Mortgage Broker Bond Today!
Ready to get bonded? Simply complete our online surety bond application form. For faster processing and to get an exact quote on your bond, make sure to supply us with as much information as possible. Once we process your application, we’ll contact you with a free quote on your bond, along with details on how to complete your bond.
The whole bonding process typically takes no more than two working days. Once your bond is issued, we’ll forward a digital copy to you via email, as well as send you an original by regular mail.
Want to know more about your surety bond? Call us at 866.450.3412 to speak to our bond agents. We look forward to hearing from you!
How to Get a Nevada Mortgage Broker License
To get licensed as a mortgage broker, you’ll be required to demonstrate a minimum net worth between $25,000 and $250,000, depending on your average monthly balance. You’ll need to obtain a mortgage broker bond, have a criminal background check and a credit check performed, provide proof of two years of experience in lending money for real estate mortgages, and designate a qualified employee.
For a detailed overview of the Nevada mortgage broker license requirements, contact the Nevada Division of Mortgage Lending.
