District of Columbia Mortgage Broker Bond Requirements
If you want to operate as a mortgage broker in the District of Columbia, you need to get a mortgage broker bond. It is one of the indispensable requirements for obtaining a DC mortgage broker license.
The DC Department of Insurance, Securities, and Banking determines the licensing criteria that mortgage brokers have to meet. The procedure is conducted via the website of the Nationwide Mortgage Licensing System (NMLS).
Why Do I Need This Bond?
The DC mortgage broker bond ensures that you will follow the law in your operations as a mortgage professional in the district. It serves as a protection mechanism for your clients by guaranteeing your compliance with Chapter 11 of the Code of the District of Columbia. You have to provide the bond in the official form.
You can end up with a claim against your surety bond if you fail to follow the applicable laws. This is how a harmed party can seek fair reimbursement for damages that you have caused them with your illegal actions. The maximum penalty on proven bond claims is the amount of the surety bond that you have posted.
In our thorough ‘What is a surety bond’ guide, you can get acquainted with the bonding process and its intricacies.
What Is The DC Mortgage Broker Bond Cost?
The cost of your mortgage broker bond is your bond premium. It depends on the bond amount that you are required to post.
In the District of Columbia, the surety bond amount depends on your yearly volume of loans as listed in the table below:
|Yearly Volume Of Loans||Surety Bond Amount|
|Less than $1 million||$12,500|
|$1 million - $2 million||$17,500|
|$2 million - $3 million||$25,000|
|More than $3 million||$50,000|
The premium that you have to pay represents a percentage of the required bond amount. It’s determined on the basis of a number of factors.
Factors That Determine Your Bond Premium
Your personal credit score is the most powerful predictor of your financial stability. That’s why the surety that you apply with will take a close look at it.
If you have a good credit score of above 700 FICO, the rates that you can expect are between 0.75%-1.5% of the bond amount. For scores lower than 600, the rates can go up to 7%.
The other factors that have an impact on your bond premium include:
- Personal and business financial statements
- Fixed and liquid assets
- Professional experience
In the table below, you can check an estimate of your bond cost, depending on your credit score and yearly volume of loans in DC.
|Mortgage Broker Bond Cost By Credit Score In DC|
|Total Yearly Volume Of Loans||Bond Amount||Bond Cost By Credit Score|
|Above 700||650-699||600-649||Below 599|
|Less than $1 million||$12,500||$100-$188||$125-$375||$188-$500||$375-$875|
|Between $1 million and $2 million||$17,500||$131-$262||$175-$525||$263-$700||$525-$1,225|
|Between $2 million and $3 million||$25,000||$188-$375||$250-$750||$375-$1,000||$750-$1,750|
|More than $3 million||$50,000||$375-$750||$500-$1,500||$750-$2,000||$1,500-$3,500|
To determine your exact bond cost, you can complete our online form and we will send you an exact free quote. It takes minutes and there is no obligation.
Alternatively, you can check our surety bond cost guide for more information.
How to Apply For a Mortgage Broker Bond in DC?
You can apply for your bond with a few clicks. Just complete the application form via the banner below. We will send you a free quote, and then you can buy your bond online straight away.
Need more information about the bonding process? You can reach us at 866.450.3412.