Overview of Washington Mortgage Broker Bond Requirements

Applicants for a mortgage broker license from the Washington Division of Consumer Services must post a $20,000 mortgage broker bond when applying for a license through the NMLS. Licensed brokers who want to renew their license may need to post a bond in a higher amount, depending on the volume of the loans originated in the previous year.

The functions of this bond is to oblige licensed mortgage brokers to comply with the state laws and rules that govern the business of mortgage brokerage, such as Chapter 19.146 RCW as well as Chapter 208-660 WAC.

If a licensed broker violates these laws, and thereby causes losses to a borrower who they provide services for, to the state or to any other person, then a claim can be made against their bond these parties. In this case, the surety that backs the bond will investigate the situation and likely extend compensation to claimants which can be as high as the full penal sum of the bond.

Never applied for a bond before? See our ‘What is a surety bond’ guide for a detailed explanation of how bonds work!

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See the sections below to find out how much it costs to get a Washington mortgage broker bond, how bond claims occur, and how you can apply to get bonded.

Feel free to call us anytime at (866)-450-3412 to get advice and more information from our professionals.

Washington Mortgage Broker Bond Cost

When you apply for your bond, you will need to pay a bond premium to the surety which issues your bond. This premium is equal to a percentage of the total amount of the bond you are required to get.

The surety which issues and backs your bond will determine your bond cost on the basis of your personal credit score. It may also take into account other factors, such as your business or personal financial statements, or even your assets, liquidity, and your personal resume.

Typically, credit score is the most influential factor, and the higher your score is, the lower your bond cost will be. Applicants with a FICO score of 700 or more may expect to get bonded for as low as $100.

First-time mortgage broker license applicants in Washington are required to obtain a $20,000 bond. Applicants for a renewal may be required to obtain a bond in the amounts of $20,000, $40,000 or $60,000.

For an estimate of the cost of your bond, try our bond calculator or see the table below. To request a free and precise quote, complete our bond form!

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Bond Cost Based on Credit Score
Washington Mortgage Broker Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
First-time applicants and mortgage brokers with a loan volume of $0-$20 million in the previous year $20,000 $100-$250 $150-$300 $400-$1,000 $1,000-$1,500
Mortgage brokers with a loan volume of $20-$40 million in the previous year $40,000 $200-$500 $300-$600 $800-$2,000 $2,000-$3,000
Mortgage brokers with a loan volume of $40+ million in the previous year $60,000 $300-$750 $450-$900 $1,200-$3,000 $3,000-$4,500

Bad Credit Bond Program

If you currently have a low credit score, you may find it difficult to get a bond from some sureties.

We’ve worked with our surety partners on creating solutions for such applicants, and offering them a way forward. By applying through our Bad Credit Program you can get the surety bond needed for your license, even if your score is currently low.

Rates under this program are higher than for applicants with a higher credit score. Yet, you need not always pay a high rate when applying for a bond. As soon as you improve your credit score, you can expect to be offered a better rate.

Find out more about this option through the program page!

Claims Against Your Bond

According to RCW 19.146.205, to become licensed as a mortgage broker in the state of Washington, you must obtain a surety bond. This bond is primarily intended to be for the benefit of borrowers who use a broker’s services. The bond guarantees a broker’s compliance with the law, and that they will conduct business in an honest manner.

If they violate the law and thereby cause losses to a borrower or, secondarily, to the state or any other person, a claim can be made against their bond to retrieve compensation for such losses. Compensation can be as high as the full amount of a broker’s bond. When a surety extends compensation to a claimant, the bonded broker must then reimburse the surety in full.

According to WAC 208-660-175, once a broker is licensed and bonded, they must renew their bond and license every year by March 31. At that time, they may be requested to post a bond in a higher amount that reflects their yearly volume of originated loans.

Apply Here!

To get started with the bond application process or to simply request a free quote - complete our bond form! We will shortly contact you to provide you with an exact quote on your bond, as well as with full information regarding completing the bond application process.

Once you submit all necessary information, it will take up to two working days for your bond to be issued by the surety. After that, we will send you the bond via mail and email.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

Learn more about the mortgage broker bonding requirements in Washington or request assistance with your bond application at (866)-450-3412!


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.