North Dakota Mortgage Broker Bond Requirements
To become licensed as a North Dakota mortgage broker, you must submit a mortgage broker bond of at least $50,000.
This license is issued and regulated by the North Dakota Department of Financial Institutions.
To apply for the license, though, you must use the Nationwide Mortgage Licensing System (NMLS).
After you register yourself in NMLS, you will be granted access to the application forms. There you will also be able to upload supporting documents like your surety bond.
Why Do I Require a Bond?
The purpose of this bond is to guarantee that North Dakota mortgage brokers will comply with the provisions of Chapter 13-04.1 of the North Dakota Century Code. Under this chapter, brokers are to obtain a bond as a form of security for borrowers.
If a licensed broker violates the provisions of the chapter by committing one or more of the prohibited acts and practices defined in 13-04.1-09, a claim may be filed against their bond.
Once a claim is filed, the surety that has issued the bond must investigate the claim and determine whether it is legitimate. It must also determine the amount of compensation to extend. Under a claim, sureties may extend compensation of as much as the full penal sum of the bond.
Never gotten bonded before? See our detailed ‘What is a surety bond’ guide for a full overview of how bonds work, why they are required, and how to get yours.
See the sections below to find out how much your bond will cost, and how to apply.
To speak to one of our bond experts about getting this type of bond, call us at 866.450.3412!
What’s The Cost of The North Dakota Mortgage Broker Bond?
To get a North Dakota money broker license, you are required to submit a $50,000 surety bond.
The cost of your bond, also known as the bond premium, is equal to a fraction of the bond amount. It is determined by the surety company that issues the bond. To determine the cost, the surety will consider some of the following factors.
Factors That Determine Your Bond Premium
Your personal credit score is the most important factor that sureties consider. The higher your credit score is, the lower the cost of your bond will be.
For example, if you have a very high score, you are likely to be offered a bond rate between .75% and 1.5% of the total amount of your bond.
If your score is good or average, you will likely be offered a rate of up to 3%. Finally, if your credit score is currently low, you will probably be offered a rate of 3% or more.
In addition to your credit score, the surety may also request to review other types of financial information, such as:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
See our surety bond cost guide if you’d like to know more about what influences bond premiums and how they are calculated!
To get an estimate of the cost of your bond, solely based on your credit score, see the table below!
|North Dakota Mortgage Broker Bond Cost Based on Credit Score|
|License type||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Mortgage broker/money broker||$50,000||$375-$750||$500-$1,500||$750-$2,000||$1,500-$3,500|
How to Get a Mortgage Broker Bond in North Dakota
Ready to get bonded? Click on the banner below to complete and submit our brief bond application form. We will then get in touch with you to provide you with a free quote and further details about how to complete the bond application process.
If you’d like to know more about how to get bonded in North Dakota, call us at 866.450.3412 to speak to one of our bond professionals!
Bryant Surety Bonds is licensed to help businesses get bonds in all 50 states. We can assist you to get bonded as a mortgage broker anywhere in the country, and in more than one state at once!