Nebraska Mortgage Broker Bond Requirements
To apply for a mortgage broker license or registration in Nebraska, you must submit a mortgage broker bond to the state Department of Banking and Finance. The required amount of your bond is $100,000.
To obtain a license or registration, you must submit an application and this bond through the Nationwide Mortgage Licensing System (NMLS).
Why is this bond required?
This bond is required to guarantee that licensed and registered brokers will comply with the provisions of the Residential Mortgage Licensing Act (Nebraska Revised Statute 45-703).
It protects individuals that make use of the services offered by a broker or a mortgage loan originator employed by a broker. The bond offers protection against violations of the Act committed by these parties.
If someone is harmed by a broker’s actions, they may seek legal recourse by filing a claim against the bond. The surety that backs the bond must then investigate the claim and may need to extend compensation to claimants. Compensation can be as high as the full amount of the surety bond.
If this is your first time getting bonded, see our detailed ‘What is a surety bond’ guide for a full overview of the purpose of surety bonds!
See the sections below for full information about the cost of your bond, what a bond claim is, and how to apply to get bonded.
To learn more about getting this bond, call our bond experts at 866.450.3412!
How Much Does the Nebraska Mortgage Broker Bond Cost?
Your actual surety bond cost is a fraction of the total bond amount. It is determined on the basis of your finances and in particular the following factors.
Factors that determine your bond premium
An applicant’s personal credit score has the greatest impact on their bond premium. A high personal credit score typically results in a low bond premium, and vice versa.
Applicants with a high score, 700 FICO and more, are typically bonded at a rate between 0.75%-1.5% of the total bond amount.
Those with lower credit score rates can still get bonded but at slightly higher rates.
Along with your credit score, the surety company may also want to review the following information prior to providing you with a quote:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
See the table below to get an estimate of the cost of your bond based on your credit score.
|Nebraska Mortgage Broker Bond Cost Based on Credit Score|
|License type||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Nebraska mortgage broker license or registration||$100,000||$750-$1,500||$1,000-$3,000||$1,500-$4,000||$3,000-$7,000.|
Why Do Bond Claims Occur?
Bond claims are the way in which individuals may seek compensation for any losses or harms suffered due to the actions of a bonded party.
If a Nebraska mortgage broker violates the Residential Mortgage Licensing Act and thereby harms one of their clients, the latter may file a claim. The surety company then investigates the claim and determines if compensation is due.
Depending on the damage, a surety may compensate a claimant for as much as the full $100,000 amount of the bond. Once the claim is settled with the claimant, the surety then turns to the bonded mortgage broker to be repaid for the compensation.
Sureties are not liable for claims and must be reimbursed in full for any compensation they extend. For this reason, it is best to comply with the conditions of your bond so as to avoid giving rise to a claim.
How to Get Your Bond
To get bonded, click on the banner below and complete the brief bond application.
Our surety professionals will get in touch with you to provide you with your free quote.
If you have any further questions about getting a mortgage broker bond in Nebraska, call us at 866.450.3412 anytime!