Overview of Illinois Mortgage Broker Bond Requirements
Mortgage brokers in Illinois have to obtain a mortgage broker bond. It’s one of the main prerequisites to getting an Illinois mortgage broker license.
The state Department of Financial and Professional Regulation determines the Illinois mortgage broker license requirements that applicants have to satisfy. The Nationwide Mortgage Licensing System (NMLS) handles the actual procedure.
Why do I need this bond?
You have to post an Illinois mortgage broker bond as a guarantee for your legal compliance. It ensures you will follow the Illinois Mortgage Act and all other applicable laws.
Your bond protects your customers against potential illegal actions you may undertake in your capacity as a mortgage broker. A harmed party can demand fair reimbursement through a bond claim. The maximum compensation is up to the amount of the surety bond that you have posted.
Our ‘What is a surety bond’ guide is an extensive resource that you can consult for further information about the bonding process.
Have more questions? You can call us at 866.450.3412!
What Is the Illinois Mortgage Broker Bond Cost?
In order to get bonded, you have to pay a bond premium. It constitutes your bond cost and depends on the bond amount that you are required to obtain.
The amount you have to post is set on the basis of your yearly loan volume:
- Less than $5 million - $25,000
- Between $5 million and $20 million - $50,000
- Between $20 million and $50 million - $75,000
- Between $50 million and $100 million - $100,000
- More than $100 million - $150,000
Your bond cost represents a fraction of the required amount. It is set on the basis of the strength of your personal and business finances.
Factors that determine your bond premium
Your personal credit score is the main determining factor for your bond premium. In case your FICO score is above 700, you can get rates between 0.75%-1.5% of the bond amount. For scores below 599, the premium may be up to 7%.
The other factors that shape your bond cost include:
- Personal and business finances
- Fixed and liquid assets
- Professional experience
For an estimate of your bond cost based on credit score, you can check the following table.
|Illinois Mortgage Broker Bond Cost Based on Credit Score|
|Amount of loan volume||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Less than $5 million||$25,000||$188-$375||$250-$750||$375-$1,000||$750-$1,750|
|Between $5 million and $20 million||$50,000||$375-$750||$500-$1,500||$750-$2,000||$1,500-$3,500|
|Between $20 million and $50 million||$75,000||$563-$1,125||$750-$2,250||$1,125-$3,000||$2,250-$5,250|
|Between $50 million and $100 million||$100,000||$750-$1,500||$1,000-$3,000||$1,500-$4,000||$3,000-$7,000|
|More than $100 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
Ready to get started with your bonding process? Just click on the banner below to fill in the application form. Then we will send you a free quote, so you can buy your bond online afterwards.
Need more details about the bonding process? Don’t hesitate to get in touch with us at 866.450.3412.