Rhode Island Mortgage Broker Bond Requirements
To get a Rhode Island mortgage broker license and operate in the state, you need to get a mortgage broker bond.
The Division of Banking at the Rhode Island Department of Business Regulation regulates the activities of mortgage professionals in the state. It determines the licensing requirements you need to meet. You have to provide your application and documents via the Nationwide Mortgage Licensing System (NMLS).
Why Do I Need This Bond?
You need to post a surety bond to obtain a Rhode Island loan broker license. It is an additional protection measure that guarantees you will deliver mortgage services in legal compliance. It thus ensures you will follow Title 34 of the Rhode Island General Laws and all other relevant rules.
The bond safeguards the interests of your customers. They can seek fair reimbursement if they have suffered damages due to illegal actions on your part. The maximum compensation can be up to the penal sum of your bond.
Need more information about how bonding works? You can consult our ‘What is a surety bond’ guide.
For more questions about the mortgage broker bond requirement, you can contact us at (866)-450-3412.
What Is the Rhode Island Mortgage Broker Bond Cost?
You need to pay a bond premium to get your mortgage broker bond. The surety bond cost is a percentage of the amount required by the Division of Banking.
In Rhode Island, mortgage brokers have to post a $20,000 surety bond for operating up to 3 branches.
The bond amounts for having additional branches are:
- Between 4 and 7 branches - $30,000
- More than 8 branches - $45,000
Factors Determining Your Bond Premium
When you apply with a surety, it has to consider several factors to evaluate your bond cost.
The most important one is your credit score. Applicants with a FICO score above 700 can get rates in the range of 0.75%-1.5% of the bond amount.
The other factors that your surety looks at are:
- Personal and business finances
- Any fixed and liquid assets
- Business experience as a mortgage professional
You can find out an estimate of your bond cost based on the credit score in the table below.
|Mortgage Broker Bond Cost By Credit Score In Rhode Island|
|Number of branch locations||Bond Amount||Bond Cost By Credit Score|
|Above 700||650-699||600-649||Below 599|
|Up to 3 branches||$20,000||$150-$300||$200-$600||$300-$800||$600-$1,400|
|Between 4 and 7 branches||$30,000||$225-$450||$300-$900||$450-$1,200||$900-$2,100|
|More than 8 branches||$45,000||$338-$675||$450-$1,350||$675-$1,800||$1,350-$3,150|
How to Apply For a Bond
Want to get started with your bonding? You just have to click on the banner below. Then you need to fill the application to obtain your free quote. When you get it, you can purchase your mortgage broker bond online.
Have further queries about the Rhode Island mortgage broker bond requirement? Don’t hesitate to call us at (866)-450-3412.