Vermont Mortgage Broker Bond Requirements
If you want to start a business as a mortgage professional in Vermont, you need to get a mortgage broker bond. It is one of the main criteria for obtaining a Vermont mortgage broker license.
The Department of Financial Regulation sets the requirements for mortgage brokers in the state. You have to go through the licensing procedure through the Nationwide Mortgage Licensing System (NMLS) website.
Why Do I Need This Bond?
All Vermont mortgage brokers have to get a surety bond. It ensures you will comply with Chapter 73, Title 8 of the Vermont Statutes, and all other applicable regulations.
The bond works as a security mechanism for your customers. If you don’t follow the law in your operations as a mortgage broker, they can demand reimbursement for any damages. The penal sum of your bond is the maximum compensation in proven cases.
Want to learn more about the bonding process? You can consult our in-depth ‘What is a surety bond’ guide.
For more information, you can reach our bonding specialists at 866.450.3412.
What Is the Vermont Mortgage Broker Bond Cost?
To get bonded, you have to pay a premium. It is the actual surety bond cost, which is a small percentage of the required amount.
The bond amounts set by the Department of Regulation is $25,000.
Factors Determining Your Bond Premium
When you apply for a mortgage broker bond, your surety needs to examine your personal and business finances to assess your premium. The most important factor it considers is your credit score.
Applicants with a FICO score of more than 700 usually get rates between 0.75%-1.5% of the bond amount.
The other factors that affect the price of your Vermont mortgage broker bond include:
- Personal and business finances
- Any fixed and liquid assets
- Know-how and experience as a mortgage professional
You can check out an estimate of your bond cost by credit score in the table below.
|Mortgage Broker Bond Cost By Credit Score In Vermont|
|License Type||Bond Amount||Bond Cost By Credit Score|
|Above 700||650-699||600-649||Below 599|
|Vermont mortgage broker bond||$25,000||$188-$375||$250-$750||$375-$1,000||$750-$1,750|
How to Apply For a Bond
Want to get your mortgage broker bond? You can click on the banner below to obtain a free quote. Then you can buy your bond online.
If you want further details about the Vermont mortgage broker bond requirements, you can reach us at 866.450.3412.