Overview of Virginia Mortgage Broker Bond Requirements
If you want to become a Virginia mortgage broker, you have to get a mortgage broker bond. This is one of the prerequisites for getting licensed in the state.
The Virginia mortgage broker license is issued by the State Corporation Commission. The licensing process is handled by the Nationwide Mortgage Licensing System (NMLS).
Why do I need this bond?
The purpose of this surety bond is to ensure you will follow the law in your operations as a mortgage broker. It guarantees you will comply with the Code of Virginia Title 6.2, Chapter 16 and any other applicable laws.
As one of the main Virginia mortgage broker license requirements, the bond protects your customers in cases when you transgress the law in your work as a mortgage professional. If they suffer damages, they can seek fair compensation via a bond claim. The amount of the surety bond that you have obtained is the maximum reimbursement they can demand on proven cases.
Do you need more information about the bonding? Make sure to consult our thorough ‘What is a surety bond’ guide.
If you have more questions, you can call us at 866.450.3412!
What Is the Virginia Mortgage Broker Bond Cost?
The bond amount for Virginia mortgage brokers is $25,000.
To get bonded, you have to pay a percentage of the required bond amount, which is referred to as bond premium. It depends on the strength of your personal and business finances.
Factors that determine your bond premium
The factor that affects your bond cost the most is your personal credit score. Applicants with a FICO score above 700 can expect rates in the range of 0.75%-1.5% of the bond amount. If your score is below 599, your rate may be up to 7%.
The other indicators that your surety considers when determining your bond premium include:
- Personal and business financial statements
- Any fixed and liquid assets
- Your business experience
For an estimate of your cost based on credit score, please refer to the table below.
|Virginia Mortgage Broker Bond Cost Based on Credit Score|
|License type||Bond Amount||Credit Score|
|Above 700||650-699||600-649||Below 599|
|Virginia mortgage broker license||$25,000||$188-$375||$250-$750||$375-$1,000||$750-$1,750|
How to Apply For Your Bond
You can easily get started with your bonding. Just click on the banner below to complete an online application. We will send you a free quote. Then you can buy your bond online.
Have more queries about the Virginia mortgage broker bond? You can reach our bonding experts at 866.450.3412.