Kansas Mortgage Broker Bond Requirements
To operate a mortgage company in the state of Kansas, you need to obtain a mortgage broker bond between $50,000 and $150,000.
This bond must be posted to the Nationwide Mortgage Licensing System (NMLS) as part of your Kansas mortgage broker license application.
The state agency that regulates mortgage brokers in Kansas is the Office of the State Bank Commissioner.
Why Do I Need a Bond?
The purpose of this bond is to bind mortgage brokers to comply with the provisions of the Kansas Mortgage Business Act (Chapter 9, Article 22 of the Kansas Statutes).
In particular, the bond is intended to cover expenses, fines, and fees imposed by the commissioner under the Act. It is also intended to cover any losses or damages incurred by a borrower or consumer as a result of a broker violation of the provisions of the Act.
If a broker violates the above conditions, a claim can be made against their bond. The surety that has issued the bond must then investigate the claim and extend compensation in an amount that covers the losses. This amount can be up to the full penal sum of the bond but not greater.
Is your first time getting bonded? If you want to know more about surety bonds, see our detailed ‘What is a surety bond’ guide!
See the following sections for more information about the cost of this bond, and how you can apply!
If you have any questions about getting this bond, call us at 866.450.3412!
How Much Does It Cost to Get a Kansas Mortgage Broker Bond?
Your surety bond cost, also known as the bond premium, is equal to a fraction of the full bond amount.
The amount of your Kansas mortgage broker bond depends on whether or not you maintain a bona fide office in Kansas. It also depends on your yearly loan origination volume.
Mortgage Brokers With A Bona Fide Office In Kansas
New applicants with a bona fide office in Kansas must post a $50,000 surety bond when applying for their license for the first time.
When renewing your license, your bond amount will depend on the amount of your loan origination from the preceding year:
- If your yearly loans volume was below $50,000,000, you will need to post a $50,000 surety bond.
- If your yearly loans volume was above $50,000,000, you will need to post a $75,000 surety bond.
Mortgage Brokers Without A Bona Fide Office In Kansas
New applicants without a bona fide office in Kansas must post a $100,000 surety bond when initially applying for their license.
When renewing your license, your bond amount will depend on the loan volume from the preceding year:
- If your yearly loans volume was below $50,000,000, you will have to post a $100,000 surety bond
- If your yearly loans volume was above $50,000,000, you will have to post a $125,000 surety bond
The actual cost of your bond is a percentage of the required bond amount. To determine that percentage your surety will consider several financial factors.
Factors That Determine Your Bond Premium
The main factor that influences the cost of your bond is your personal credit score. The higher your score is, the lower your bond premium will be.
Applicants with very high scores can expect to be offered a bond rate starting at 0.75% of the bond amount.
Applicants with low scores can expect to be offered a bond rate upward of 3% of the bond amount.
Apart from your score, the surety will also request to review some or all of the following:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
See the table below for an estimate based on your credit score.
| Kansas Mortgage Broker Bond Cost By Credit Score | |||||
| License Type | Bond Amount | Bond Cost By Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | ||
| Kansas mortgage company | $50,000 | $375-$750 | $500-$1,500 | $750-$2,000 | $1,500-$3,500 |
| $75,000 | $563-$1,125 | $750-$2,250 | $1,125-$3,000 | $2,250-$5,250 | |
| $100,000 | $750-$1,500 | $1,000-$3,000 | $1,500-$4,000 | $3,000-$7,000 | |
| $125,000 | $938-$1,875 | $1,250-$3,750 | $1,875-$5,000 | $3,750-$8,750 | |
Wondering how much your bond will cost? Complete our online application form and get a free quote for your bond. It takes a few minutes and there is no obligation.
How to Apply For Your Bond
To get started with your bond application, click on the banner below, and complete the form. One of our bond experts will then get in touch with you to provide you with a free quote, along with further information about the bonding process.
Do you have any additional questions about getting a Kansas mortgage broker bond? Call us at 866.450.3412!
