Indiana Mortgage Broker Bond Requirements

To obtain a mortgage lending license or a loan broker license in the state of Indiana, applicants need to post a mortgage broker bond.

Applicants for a mortgage lending company license must post a $100,000 bond, whereas applicants for a loan broker company license must post a $60,000 loan broker bond.

These licenses are issued by separate government agencies. The Indiana Department of Financial Institutions regulates and issues licenses for mortgage lenders in the state. The Indiana Secretary of State Securities Division regulates and issues licenses for loan brokers.

In order to apply for any of these licenses, though, you must use the Nationwide Mortgage Licensing System (NMLS). To apply, you must register in the system and submit your application forms, supporting documents, and a mortgage broker bond.

Why Do I Need A Bond?

This bond guarantees that licensees will comply with the provisions of the Indiana Code, such as IC 23-2.5, and IC 24-4.4.

If a licensed and bonded mortgage broker violates the provisions of these chapters in the IC, causing losses to borrowers or mortgagees, a claim can be filed against their bond. The claim’s purpose is to secure compensation for such damages.

The surety that has issued the bond must then investigate the claim and compensate claimants up to, but no more than, the full amount of the surety bond.

Once a surety has compensated claimants, the bonded mortgage broker must reimburse the surety in full because they are liable for any violations of the bond’s conditions.

If you want to learn more about how surety bonds work, make sure to read our detailed guide ‘What is a surety bond’.

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See the following sections for more information about the cost of the Indiana mortgage broker bond, and how to get bonded!

If you have any additional questions about the bonding requirements in the state of Indiana, call us at 866.450.3412 anytime!

How Much Does The Indiana Mortgage Broker Bond Cost?

To get bonded, you must pay a surety bond premium. The premium is equal to a percentage of the total bond amount.

The bond amount for mortgage lenders is $100,000, whereas loan brokers must post a $60,000 surety bond.

To determine the cost of your bond, sureties will typically request to review your financials. Here are the main factors that they take into consideration.

Factors That Determine Your Bond Premium

Your personal credit score is the most important indicator that sureties consider. A high credit score is understood to mean that you are less likely to give rise to a claim against your bond.

Applicants with high scores, such as 700 FICO and higher, are usually offered a rate between 0.75% and 1.5% of the total bond amount.

Applicants with low or very low scores are typically offered a rate upward of 3%.

On top of your credit score, sureties will usually also want to review some of the following information:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

Wondering how much your surety bond will cost? See the table below for a cost estimate, based on your credit score.

Indiana Mortgage Broker Bond Cost By Credit Score
License Type Bond Amount Bond Cost By Credit Score
Above 700 650-699 600-649 Below 599
Mortgage lender license $100,000 $750-$1,500 $1,000-$3,000 $1,500-$4,000 $3,000-$7,000
Loan broker license $60,000 $450-$900 $600-$1,800 $900-$2,400 $1,800-$4,200

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

How to Get a Mortgage Broker Bond in Indiana

Ready to apply for your bond? Click on the banner below to complete our quick bond form. We will then provide you with a free quote on your bond, along with further information about the bonding process.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

If you have any additional questions about getting this type of bond, you can always call us at 866.450.3412 for more information!

About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.