Utah Escrow Agent Bond Requirements
To obtain a Utah escrow agent license, you have to post an escrow agent bond. It is one of the indispensable requirements that you have to meet to start your escrow operations in the state.
The rest of the requirements are in the application checklist provided by the Nationwide Mortgage Licensing System and Registry (NMLS).
Why Is This Bond Required?
The Utah Department of Financial Institutions requires all applicants for an escrow agent license in the state to post a surety bond. The purpose of the bonding is to ensure that you will adhere to the legal framework in your work as a licensed escrow agent.
The escrow agent bond works as a protection mechanism for your clients. If they suffer damages due to any illegal actions on your side, they can file a claim against the bond. The compensation they can seek is up to the penal sum of the bond that you have provided.
Do you need more information about how bonding works? You can review our in-depth ‘What is a surety bond’ guide.
Have further questions? Don’t hesitate to contact us at 866.450.3412.
What’s the Utah Escrow Agent Bond Cost?
The cost that you have to pay to get your escrow agent bond depends on the amount set by the Department.
In Utah, the required amount is based on your average monthly escrow liability. It can be between $10,000 and $50,000:
- $10,000 bond - less than $10,000
- $20,000 bond - $10,001 – $20,000
- $30,000 bond - $20,001 – $30,000
- $40,000 bond - $30,001 – $40,000
- $50,000 bond - more than $40,000
You have to cover a small fraction of the respective amount. It is called the bond premium. Your surety formulates it after it assesses the strength of your personal and business finances.
Factors That Determine Your Bond Cost
The main factor that affects the bond cost for your Utah escrow agency is your personal credit score. If you can demonstrate a FICO score of 700 or higher, you can expect rates as low as 1% of the required bond amount.
The rest of the indicators that play a role include:
- Your personal and business finances
- Fixed and liquid assets that you may have
- Professional experience
You can review our extensive surety bond cost guide for more details about the formation of your premium.
In the table below, you can check an estimate of your escrow agent bond based on credit score.
|Utah Escrow Agent Bond Cost Based on Credit Score|
|Average monthly escrow liability||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Up to $10,000||$10,000||$100-$300||$100-$300||$100-$300||$300-$500|
|$10,001 – $20,000||$20,000||$200-$600||$200-$600||$200-$600||$600-$1,000|
|$20,001 – $30,000||$30,000||$300-$900||$300-$900||$300-$900||$900-$1,500|
|$30,001 – $40,000||$40,000||$400-$1,200||$400-$1,200||$400-$1,200||$1,200-$2,000|
|More than $40,000||$50,000||$500-$1,500||$500-$1,500||$500-$1,500||$1,500-$2,500|
Apply for Your Escrow Agent Bond
Are you ready to obtain your Utah escrow agent bond? Just click on the banner to get a free quote from us. Then you can buy the bond online.
Do you have more questions about the bond requirements for Utah escrow agents? You can reach our bonding experts by calling us at 866.450.3412.
Bryant Surety Bonds is licensed to issue escrow agent bonds in all 50 states. We can assist you to get bonded as an escrow agent anywhere in the country!