Tennessee Mortgage Broker Bond Requirements
If you want to work as a mortgage professional in Tennessee, you need to obtain a mortgage broker bond. It is one of the main requirements for getting a Tennessee mortgage license.
The licensing authority in the state is the Department of Financial Institutions. The process is conducted via the Nationwide Mortgage Licensing System (NMLS) website.
Why Do I Need This Bond?
To obtain a Tennessee mortgage license to operate as a broker, servicer, or lender, you have to get a surety bond. It guarantees you will follow all applicable laws, including the Tennessee Residential Lending, Brokerage, and Servicing Act.
If you fail to abide by the Act and your customers are harmed as a result, they can file a bond claim. They can seek compensation up to the penal sum of your bond.
Need more details about the way bonding works? Don’t miss our detailed ‘What is a surety bond’ guide.
To speak with our bonding experts, call us at (866)-450-3412.
What Is the Tennessee Mortgage Broker Bond Cost?
You have to pay a premium to obtain your mortgage broker bond. The surety bond cost that you need to cover represents a small percentage of the required amount.
The bond amounts for the different types of mortgage professionals are:
- Mortgage brokers - $90,000
- Mortgage lenders and servicers - $200,000
Factors Determining Your Bond Premium
The bond price depends on several factors. The most significant one is your credit score. In case you have a FICO score above 700, you can get rates as low as 0.75%-1.5% of the required amount.
The price of your Tennessee mortgage broker bond is also determined by your:
- Personal and business finances
- Fixed and liquid assets
- Experience as a mortgage professional
For an estimate of your bond cost by credit score, check out the table below.
|Mortgage Broker Bond Cost By Credit Score In Tennessee|
|Type of Mortgage Professional||Bond Amount||Bond Cost By Credit Score|
|Above 700||650-699||600-649||Below 599|
|Mortgage servicers and lenders||$200,000||$1,500-$3,000||$2,000-$6,000||$3,000-$8,000||$6,000-$14,000|
How to Apply For a Bond
Ready to get started with your bonding? Click on the banner below to apply for a free quote on your mortgage broker bond. You can purchase it online afterward.
Need further details about the Tennessee mortgage broker bond? Don’t hesitate to call us at (866)-450-3412.