Overview of Connecticut Mortgage Broker Bond Requirements
If you wish to start a business as a mortgage broker in Connecticut, you have to post a mortgage broker bond. This is one of the main criteria for qualifying for a Connecticut mortgage broker license.
The state Department of Banking sets the requirements that mortgage applicants have to fulfill. The process is handled via the website of the Nationwide Mortgage Licensing System (NMLS).
Why do I need this bond?
The purpose of the Connecticut mortgage broker bond is to ensure your legal compliance. The bond guarantees you will follow the Banking Law of Connecticut and all relevant laws.
The bond protects the interests of your customers. It is a mechanism through which they can demand compensation if they have suffered damages due to your unlawful actions. The amount of the surety bond that you have provided is the maximum reimbursement they can seek.
In the detailed ‘What is a surety bond’ guide, you can get to know more about how bonding works.
Need further information? Don’t hesitate to call us at 866.450.3412!
What Is the Connecticut Mortgage Broker Bond Cost?
The bond premium is the actual cost that you have to pay to get bonded. It is set on the basis of the required bond amount in the state. You have to submit the bond on the official form.
In Connecticut, this amount depends on your dollar amount of origination volume:
- Less than $30 million - $50,000
- Between $30 million and $50 million - $100,000
- More than $50 million - $150,000
The premium is a percentage of the required amount, which depends on a number of factors.
Factors that determine your bond premium
The most significant indicator that your surety considers is your personal credit score. For applicants with FICO score above 700, the rates are between 0.75%-1.5% of the bond amount. If your score is lower than 599, the rates can be as high as 7%.
The additional factors that shape your premium include:
- Personal and business finances
- Fixed and liquid assets
- Business experience
You can check an estimate of your bond cost in the following table.
|Connecticut Mortgage Broker Bond Cost Based on Credit Score|
|Amount of origination volume||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Less than $30 million||$50,000||$375-$750||$500-$1,500||$750-$2,000||$1,500-$3,500|
|Between $30 million and $50 million||$100,000||$750-$1,500||$1,000-$3,4000||$1,500-$4,000||$3,000-$7,000|
|More than $50 million||$150,000||$1,125-$2,250||$1,500-$4,5000||$2,250-$6,000||$4,500-$10,500|
How to Apply For a Bond
To apply for a mortgage broker bond, just click on the banner below. When you complete the application form, we will send you a free quote. You can buy your bond online afterwards.
Have more queries about the bonding process? You can speak to our bonding experts at 866.450.3412.