Iowa Mortgage Broker Bond Requirements
To start your operations as an Iowa mortgage broker, you need to get a mortgage broker bond in the amount of $100,000. The bond is an indispensable requirement for obtaining your Iowa mortgage broker license.
The state Division of Banking oversees the mortgage industry and issues licenses for mortgage professionals. It determines the criteria that you have to meet to launch your activities in Iowa. The Nationwide Mortgage Licensing System (NMLS) executes the licensing procedure.
Why Do I Need This Bond?
The purpose of your Iowa mortgage broker bond is to safeguard the interests of your clients. It serves as an extra level of protection, ensuring your legal compliance with the state regulations. The bond guarantees you will follow Chapter 535B of the Code of Iowa, and all other applicable statutes.
In case a party suffers damages as a result of illegal actions on your side, they can file a claim against your bond. This is how they can seek fair compensation for any losses. The amount of the surety bond that you have provided is the maximum penal sum they can obtain.
For the full details on how bonding works, don’t miss our extensive ‘What is a surety bond’ guide.
Have more questions? You can reach us at 866.450.3412!
What Is the Iowa Mortgage Broker Bond Cost?
In order to get licensed as an Iowa mortgage broker, you need to post a $100,000 surety bond. Here you can find the official bond form.
You have to pay a small percentage of this amount, which is referred to as the bond premium. It is set on the basis of your personal and business finances.
Factors That Determine Your Bond Premium
When applying for your mortgage broker bond, the surety will take a close look at your financial profile. Your personal credit score is of particular importance. If you can demonstrate a FICO score above 700, you can get the lowest bonding rates for as low as 0.75% of the required bond amount. For applicants with scores below 599, the rates can go up to 7%.
The rest of the factors that shape your bond premium include:
- Personal and business finances
- Any fixed and liquid assets
- Business experience and credentials
For a ballpark estimate of your mortgage broker bond cost based on your credit score, you can review the table below.
|Iowa Mortgage Broker Bond Cost By Credit Score|
|License Type||Bond Amount||Bond Cost By Credit Score|
|Above 700||650-699||600-649||Below 599|
|Iowa mortgage broker license||$100,000||$750-$1,500||$1,000-$3,4000||$1,500-$4,000||$3,000-$7,000|
How To Apply For A Bond
It’s easy to get started with your bonding. Just complete the application form when you click on the banner below. We will send you a free quote. Then you can buy your mortgage broker bond online.
Still have questions about obtaining your Iowa mortgage broker bond? Don’t hesitate to contact us at 866.450.3412.