North Carolina Mortgage Broker Bond Overview

Applicants for a mortgage broker license in the state of North Carolina must secure a mortgage broker bond.

For first-time applicants the bond must be in an amount of $75,000. For renewal applicants the bond amount is determined on the basis of their annual loan volume and can be in an amount of $75,000, $125,000, or $250,000.

The NCCOB is responsible for the regulation of mortgage brokers in the state. Applications for mortgage broker licenses are made through the Nationwide Multistate Licensing System & Registry (NMLS).

What's the purpose of this bond?

This bond is put in place to guarantee that in conducting business, licensed brokers will comply with the provisions of the SAFE Act.

If a broker violates the Act and harms an individual, that person may file a claim against their bond in order to secure compensation. Then the surety that backs the bond steps in and may extend compensation to the claimant(s).

Compensation under a bond claim can be as high as the full bond amount.

If you're new to surety bonds, have a look at our detailed ‘What is a surety bond' guide to get a better grasp of their purpose.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

The following sections will provide you with more information about how much your bond might cost, what can trigger a bond claim, and how you can apply to get bonded.

Feel free to call us at 866.450.3412 anytime if you want to know more about this bond or require assistance with your application!

How Much Does the North Carolina Mortgage Broker Bond Cost?

The cost of your bond, or bond premium, is equal to a fraction of the full amount of your bond. Your surety will determine your premium by reviewing a number of indicators of your financial standing.

How sureties determine the bond premium

Personal credit score is the primary factor that sureties consider when they evaluate your application. The higher your score is, the cheaper it will usually be for you to get bonded.

As a rule, applicants with perfect to good credit scores are offered a rate on their bond that varies between .5% and 5% of the amount of their bond.

Applicants with low to so-called bad scores are, in turn, bonded at a rate between 5% and 15%. This difference in rates is due to sureties considering credit score an indicator of the likelihood of a claim being triggered. Yet, bond rates are not fixed and if you improve your credit score, you can expect to be offered a better rate when you renew your bond in the future.

The following information is also reviewed by sureties in determining the appropriate premium for an applicant:

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

See the table below for an estimate of the cost of your bond based only on credit score.

North Carolina Mortgage Broker Bond Cost Based on Credit Score
Annual volume of mortgage loans Bond Amount Credit Score
Above 700 650-699 600-649 Below 599
Up to $10 million $75,000 $375-$938 $562-$1,125 $1,500-$3,750 $3,750-$5,625
Between $10 million and $50 million $125,000 $625-$1,562 $937-$1,875 $2,500-$6,250 $6,250-$9,375
More than $50 million $250,000 $1,250-$3,125 $1,875-$3,750 $5,000-$12,500 $12,500-$18,750

* 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 Do Bond Claims Occur?

This bond is conditioned upon the mortgage brokers' compliance with the provisions of the NC SAFE Mortgage Licensing Act. In other words, it guarantees that in offering their services bonded brokers will comply with this and any other laws that regulate their business.

The further purpose of this bond is to guarantee to the state and consumers who work with the broker that they are guaranteed financial compensation if the licensee violates the Act. If in doing so, the broker causes losses or damages, aggrieved parties can file a claim against the bond to request financial compensation.

The surety is then required to step in to investigate the matter and extend payment if the claim is legitimate. In return, though, the broker must repay the surety as liability always rests with the party that has violated the bond's conditions.

Such compensation can reach as much as the full amount of the bond, making bond claims an undesirable occurrence. If, instead, the broker is compliant, the only cost associated with this bond is the bond premium which is only a fraction of the full amount.

Ready to Apply? Here's How!

You can get started right away with your application by clicking on the banner below and completing the bond form. We will then contact you to provide with a free and precise quote on your bond as well as more information about the bonding process.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

For any questions about this bond or how to get bonded, call us at 866.450.3412!

Further Reading


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.